How Does Two Wheeler Modification Impact Insurance Premium

Updated Oct 13, 2020

How Does Two Wheeler Modification Impact Insurance Premium

Buying a two-wheeler is a dream for many and a requirement for some. Even after spending a huge amount, people may not be completely satisfied with the vehicle they have bought. In situations like this, modification becomes the answer. Some people modify their two-wheeler to make it look exactly as they want, while some modifications have other specific reasons. That being said, it is not only the modification cost you need to worry about. Modifications can have a direct impact on your two-wheeler insurance policy premium and here is how.

Two-Wheeler Modifications And Their Impact On Insurance Premium

Modification can be of different sorts. Below goes how the different types of two-wheeler modifications influence the premium of your insurance policy.

Visual Modification

Visual modifications are done mainly to enhance aesthetic value. You can change the colour, change the seat cover, alter the headlights or simply add fibre parts for a sporting look. The more visual modifications you add, the more attractive the two-wheeler becomes for the thieves. The said visual modification increases the market value of your bike along with the risk factors. The high-risk factors consequently, will give a rise in the premium of your insurance policy.

Performance Modifications

Modifications can be done to enhance the speed and overall performance of two-wheelers. Performance modifications, such as speed-enhancing machinery or fuel-efficient systems, are popular among the two-wheeler owners. Note that along with the speed and performance, these modifications increase the risk factors like road accidents. During claim settlements, these modifications are reviewed as high-risk factors. Hence, insurance providers take performance modifications into account and adjust the premium accordingly.

Security Modifications

Contrary to the previous sorts of modifications, security modifications generally have a positive influence over the insurance premium. These modifications add to the security of your two-wheeler and reduce the risk factors like theft. You can opt for ARAI or the Automotive Research Association of India approved anti-theft device, alarms, locks and so on to your two-wheeler. Insurers offer special discounts to two-wheelers equipped with the said modifications.

Modifications For Disabled

If any modification is done for disabled persons, insurers do not charge extra premium. Special discounts on two wheeler insurance are often offered to you. This initiative is to encourage disabled persons to roam around freely.

External Fittings

Any external fitting like luggage carriers can add to the premium of your insurance policy. These additions are treated like bike accessories not fitted by the manufacturer. In such cases, the insurer reviews the external addition and computes the premium accordingly.

Few Things To Keep In Mind

Modifications can make a huge burden on your wallet and hence, you should keep the following factors in mind while spending your money.

Make sure the modifications you make on your two-wheeler abide by the rule and regulations of the country.
Inform your insurer even of any small modifications of your two-wheeler. Some modifications may not add to the premium. However, it is better to be clear on your part.
In case the insurer is not informed of the modifications, the chances of claim rejection increases.
Carry all your modification details while purchasing or renewing the policy.

There are no specified charges applicable to the modifications. The insurer decides the rates after reviewing the changes. Make as many modifications as you want. However, remember to consider their impacts on the premium.