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Do Modified Cars Get Insurance Coverage : Motor Insurance
Car modifications go well beyond fancy paint jobs and looks. Any change that is different from what the manufacturer originally specified counts as a modification from an insurance company's viewpoint. The Supreme Court's January 2019 ruling changed how the law sees modifications by a lot. The court updated Section 52 of the Motor Vehicles Act, 1988. Now vehicles must stick to their original specifications listed in registration papers. Your car insurance premium depends on several things like the make, model, specifications, mileage, and market price.
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These modifications can change these factors by a lot. Here are the main types of modifications that affect your insurance coverage:
Not all modifications make your premium go up. To name just one example, adding parking sensors or anti-theft devices can actually reduce your premium because they lower risk. But performance-boosting changes like turbochargers or engine upgrades usually mean higher premiums since they make accidents more likely. Insurance companies look at modifications based on your vehicle's risk level. If you don't tell your insurer about modifications, they might reject claims or cancel your policy. This matters most with complete car insurance policies that cover damage to your own vehicle.
Do Modified Cars Get Insurance Coverage?
Your modified car needs special insurance coverage to stay protected. We mainly looked at two options: you can either get a coverage endorsement or go for a separate custom car insurance policy. This makes sense because modified vehicles come with expensive parts and just need specialized repairs.
Here's how you can get insurance for your modified car:
The type of insurance policy determines how modifications affect your coverage. Third-party liability policies don't care about modifications, but this is a big deal as it means that comprehensive car insurance plans do. On top of that, it's worth noting that standard comprehensive policies won't cover externally-fitted parts unless you add an Accessories Cover Add-on. You could face serious problems if you don't tell your insurer about modifications. They might reject your claim outright or pay only for the originally covered parts. Your best bet is to let your insurer know about any changes. They'll check your vehicle again, factor in the modifications, and update your policy. There's good news too - not every modification bumps up your premium. You might even get insurance discounts for adding safety features like anti-theft devices. All the same, major performance upgrades like engine modifications or turbochargers usually mean higher premiums because they make accidents more likely.
Legal Car Modifications and Their Impact on Motor Insurance
The Supreme Court of India's January 2019 judgment brought strict rules for vehicle modifications. Changes to Section 52 of the Motor Vehicles Act, 1988 now require vehicles to match their original registration specifications.
You can still make esthetic modifications under specific rules. These include:
Your insurance premiums could jump up to 132% with performance boosters like turbochargers or superchargers. Wheel modifications might increase premiums by 8-18%. Even exterior changes can push premiums up between 12% to 66%, based on the type of upgrades. Insurance companies need to know right away about changes to engine power, suspension, or structural components. Your claims might be denied or policy canceled if you don't report these modifications. Each change goes through a risk assessment before insurers adjust your premiums. The Supreme Court hasn't banned all modifications completely. Changes that stay within registration specifications are still allowed. Yes, it is easier to get approval for safety improvements and modifications that make vehicles available to differently-abled people.
Types of Car Modifications That Affect Insurance
Vehicle modifications can change your insurance premiums by a lot. Adding a turbocharger or supercharger to your engine might increase your premium up to 132%. Other non-standard engine changes push premiums up by 63%.
These modifications will change your insurance costs:
Your car's exterior changes will affect premiums too. Bonnet bulges and flared wings can push premiums up by 66%, and full body kits raise costs by 57%. Simple changes like window tinting lead to a 16% premium increase. Your car's interior changes need careful thought. New racing seats add 27% to premiums, while changes to upholstery or dashboard raise costs by 16%. Custom paint jobs increase premiums by 36%, and adding stripes or decals costs 22% more. Wheel changes show different effects on insurance costs. Wider wheels or tires add 18% to premiums, but alloy wheels only increase them by 8%. Some changes like parking sensors or anti-theft devices might lower your premium because they reduce accident risks.
How to Ensure Your Modified Car is Covered
You need to follow specific steps to get insurance coverage for your modified car. Contact your insurance provider before making any changes to your vehicle. This helps insurers review premium costs and validate claims.
Here's what you need to do to protect your modified car:
Don't wait for policy renewal to tell your insurer about planned modifications. Being transparent helps you avoid rejected claims or invalid policies. Your insurance company will schedule an inspection after notification to check the modifications and adjust premiums if needed. Getting an endorsement for your modifications is significant. Your insurance policy will give a formal acknowledgment that covers these changes. You might need to think over an Accessories Cover Add-on for external parts that standard comprehensive policies don't cover. Clear communication with your insurer prevents future issues. Note that insurance companies have different approaches to modifications - some are more flexible while others follow strict policies. Open dialog with your provider will give appropriate coverage for your customized vehicle.
Conclusion
Car modifications just need careful thought about insurance coverage. You'll protect your investment and stay within regulations by knowing the legal requirements and insurance implications.
Different modifications affect premiums by a lot. Engine changes can push costs up to 132%. Safety upgrades might actually lower your premiums. These differences make it crucial to talk to your insurance provider before changing your vehicle.
The Supreme Court's 2019 judgment sets strict rules for modifications. You can still improve your vehicle with allowed changes like paint jobs and safety upgrades without affecting insurance coverage.
Good paperwork and quick updates to insurers prevent claim rejections. Make sure you schedule inspections, get needed endorsements, and keep detailed records of all changes.
Questions about your modified car's insurance? Visit https://basketoption.insure/motor-insurance, your expert insurance broker in Bangalore. We'll help you check your modified car's coverage. Reach out today for expert advice and competitive quotes to protect your customized ride!
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?Can I get insurance for my modified car
Yes, you can get insurance for a modified car. However, you'll need to inform your insurer about the modifications. You may require either a coverage endorsement or a separate custom car insurance policy. Some insurers offer supplemental coverage or stated amount coverage for extensively modified vehicles.
?How do car modifications affect insurance premiums
Car modifications can significantly impact insurance premiums. Performance enhancements like engine upgrades or turbochargers typically increase premiums due to higher accident risks. However, some modifications, such as installing safety features like anti-theft devices, may actually lower your premium.
?What types of car modifications are legal in India
In India, esthetic modifications like paint jobs (with RTO approval), disabled-friendly adaptations, safety feature upgrades, and interior customizations that don't affect structural integrity are generally permissible. However, modifications that alter the vehicle's original specifications mentioned in registration papers are not allowed as per the Supreme Court's 2019 judgment.
?Do I need to inform my insurer about all car modifications
Yes, it's crucial to inform your insurer about all modifications to your car. Failing to do so can lead to claim rejections or policy invalidation. This is especially important for comprehensive car insurance policies, as they cover damages to your own vehicle.
?What is Motor Own Damage (MOD) insurance
Motor Own Damage (MOD) insurance, also known as comprehensive motor insurance, provides protection for your vehicle against a wide range of risks. It covers damages to your own vehicle, unlike third-party liability policies which only cover damages to other vehicles or property.
