When You go for Performance Modifications
Performance modification usually includes fuel-efficient systems or speed-enhancing mechanism that is fitted on the two-wheelers. As we know, faster speed may lead to a higher risk of accidents. The insurers review performance modification as a cause of frequent claims. Well, it is entirely your decision, whether you go for the modification. But it will surely increase bike insurance premiums, considering the risk factor.
Impact of Visual Modifications
Giving a brand new look or utterly change the colour of your prized passion is your cautious efforts to add to its look. But with the enhancement of aesthetic value, the risk of theft increases simultaneously. This directly impacts on two wheeler insurance premium and the insurance company asks for a higher rate. When aesthetic value increases, the value of your bike in the market also gets increases, causing a proportional difference in the premiums.
Security Modifications & Its Impact
This type of modification helps you protect your vehicle and also save on premiums. With security modification, the chances of your bike being stolen are lesser. If you have installed an anti-theft device, you’ll fall under the low-risk category and the insurer will see you with no precautionary tools. To encourage such a measure, the insurance company offers two wheeler insurance at a discounted rate. Thus, security modification helps you save on premiums and to keep your vehicle safe always.
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Modifying for the Disabled
If a bike is used by a differently abled person and necessary modification is done to as per his/her convenient, the insurance provider will not ask for an extra premium. Even extra discount is offered. This is to encourage a disabled person to move freely without fear. In order to claim a discount, you should keep the details of the modification done in the vehicle and intimate the insurer at the time of buying or renewing the bike insurance policy.
If External Fittings to the Bike
Certain external fittings lead to the rise of premiums. Fittings like luggage carrier will increase the value of the bike, so the premium rates. Hence, if you fit an external part you should inform the insurer while purchasing two wheeler insurance. The insurance provider will adjust the value and calculate the premiums accordingly. This will help you decide whether a particular plan is affordable or you should consider another.
The Premium-Friendly One
Well, some modifications have no adverse impact on two wheeler insurance premiums. Modification such as upgraded breaking system, crash bars, increase in engine capacity up to 5% etc. will not increase the premium, while wheels, suspension or tank pads modifications are even accepted by the insurer and lead to a minimal increase of premium.
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Things to Keep in Mind!
- The most significant aspect of modifying a two-wheeler is in compliance with the law of the land. You should ensure that you have all the required permission to do whatever changes you prefer and the vehicle is street-legal after carrying out the mod-job successfully.
- If you’re planning a serious modification, don’t hesitate to ask the different insurance company that if there is any extra premium they’re going to ask for. Some insurance provider may not charge anything for a modification while some others may ask. Be clear from your part.
- Remember that, even a single modification will amplify two wheeler insurance premiums. Not informing your insurer about such modification you’ll welcome the risk of claim rejection or insurer may nullify the policy.
- In case of an accidental claim, if the insurer notices a recent modification that is not informed, it can straightforwardly reject your claim. So, be careful.
The Final Word!
When there’re so many aspects affecting your two wheeler insurance premium, once you give a thumb to a modification, dare to ignore its impact on the premium. Most importantly, inform the insurer without fail about a modification well ahead of its implementation. The insurer will assess the situation accordingly and suggest a premium depending on the risk associated. However, there is no hard-and-fast-rule set on the exact percentage of increase or decrease of two wheeler insurance premium. You can settle on the amount suggested by the insurer or find a common ground or mutually settle for the best option that suits both parties.
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