Does Your Car Insurance Still Apply After Modifications?
.
Customising your four-wheeler can be fun, whether you’re equipping a new look, tweaking performance, or boosting safety. But one important thing that many owners in India forget to think about is this: does your car insurance still cover the alteration? The answer can be tricky. Knowing how enhancements might affect your plan is key to avoiding denied claims or losing coverage.
Why Insurers Care About Car Modifications
Insurers base their policies on how your vehicle was built. When you modify it later, the risk level changes. For instance, if you upgrade the engine to make it faster, the risk of accidents increases, and underwriters pay close attention to this.
Similarly, adjustments related to the automobile’s structure or how it's handled, like changes to the suspension system or installing wider tires, may catch the attention of providers. These could affect the vehicle’s safety and how stable it feels on the road.
Understanding Minor and Major Changes
Not every four-wheeler enhancement impacts your coverage in the same way. Modifications can be grouped into three types:
1. Minor or Cosmetic Upgradations
Small visual updates make little difference. For instance, repainting your vehicle in the same shade it already had, adding neat graphics, or swapping out parts with those from the original manufacturer rarely affect your premiums. These updates don’t need to be reported since they don’t change the automobile’s performance or risk level.
2. Performance Or Structural Modifications
Adjusting things like speed, power, or the structure of a four-wheeler—through methods like engine tuning, adding turbochargers, or changing the chassis—affects policy in big ways. These often lead providers to charge higher premiums or place restrictions because they believe such customizations raise the chance of accidents.
3. Adding Safety Features
Installing devices such as anti-theft systems might bring down policy costs since they help lower risks.
Legal Compliance And Insurance Validity
In India, some types of four-wheeler alterations are against the law under motor vehicle rules. This includes things like darkened windows, noisy exhausts, bull bars, or changing the chassis.
Illegal upgradations can lead to penalties, having the automobile taken away, or losing its registration. Worse yet, if these upgradations play a role in an accident, insurers might refuse to cover claims.
Even when you modify it, you need approval from the Regional Transport Office. You also have to update your registration certificate if the upgradations are significant, like engine swaps or colour changes.
Why You Should Tell Your Insurer
India’s insurance regulations require vehicle owners to officially endorse and sometimes pay extra premium for its upgradations. Failing to inform the provider can lead to claim issues.
If upgrades increase the automobile’s value without policy updates, the company may cover only original parts or even reject the claim entirely.
Do Modifications Always Lead to Higher Premiums?
Not always. Premium adjustments depend on how the enhancements affect risk. Adding upgrades for better performance often increases premiums, while upgrades for safety might reduce them.
But even small upgrades can affect how they view risk, so being upfront with them is always a good idea.
Things to Do Before Changing Your Car
Below are some practical tips to consider before alteration:
- Make sure alterations follow Indian motor laws.
- Get approval from the RTO if there are major changes.
- Let your insurer know and update your policy.
- Save invoices and any approval paperwork.
- Compare plans before you buy car insurance online for a modified motor.
Final Thoughts
Customising your vehicle adds individuality but affects risk, regulations, and coverage. Stay transparent by declaring all upgradations, securing approvals, and updating your plan. A trusted insurer like Chola MS Car Insurance can assist with endorsements and help keep your modified motor protected on Indian roads.
FAQs
Q1. Can modifying my automobile lead to policy cancellation?
The policy won’t be cancelled just because you modified your vehicle. However, failing to inform your provider could result in claim rejection or even termination of coverage.
Q2. Is it necessary to declare cosmetic enhancements?
Small cosmetic updates don’t always need to be reported. But it’s a good idea to let your carrier know anyway so there’s no confusion later.
Q3. Are four-wheeler modifications illegal in India?
Not all alterations are against the law. Only those that affect safety, emissions, structure, or legal rules are not allowed.
Q4. What if I modify my automobile after getting policy?
You need to inform your provider and update your policy. If you don’t, your policy might not cover you.
Q5. Can making updates lower my premium?
Yes. Adding safety features or anti-theft systems can cut premiums since they help bring down risks.
Disclaimer: No Business Standard Journalist was involved in creation of this content