Who doesn't like upgrades? A car is a very precious asset to many. Many love experimenting with the latest car upgrades and adorn their vehicle with the latest accessories and functionalities.
Customizing your car to your liking or modifying it to make it look or perform better can influence the premium amount and coverage of your car insurance online plan.
If you're planning on getting a Digit car insurance policy, you need to understand how modifications to your car can affect your premium. Several factors determine automobile insurance premiums and coverage.
One of these factors is car modifications, concerning aspects such as:
- Performance
- Structure
- Appearance
You must inform your insurance company before you modify your car or as soon as the changes are implemented. An inspection could be scheduled by the insurer, after which the changes in your car insurance premium and coverage will take place, if necessary.
What Exactly are Car Modifications?
Car modifications are changes in the structure, aesthetics, or functionality of the the four-wheeler.
Some common examples of vehicular modifications that can affect your Digit automobile insurance are:
- Cosmetic changes
Engine changes - Tyre or light changes, etc.
Modifications to your car will directly affect your car insurance online coverage and premium as the potential for risk increases when changes are made to the insured vehicle.
Car Modifications That May Affect Your Digit Auto Insurance
Exterior Modification
Making changes or modifying a car's external appearance is an exterior modification.
For example:
- Changing your car's colour or giving it an eye-catching design
- Installing attractive lights to enhance the aesthetic value of your vehicle
- Making it more susceptible to theft and more expensive to insure.
Any such changes to the insured vehicle must be notified to the insurance company.
Interior Modifications
Interior modifications refer to changes made to the interior appearance or aesthetics of the car, like changes in the:
- Music system
- Car seats
- Dashboard, etc.
These modifications may result in higher insurance premiums and should be reported to your car insurance company.
Performance Related Changes
Changes to the car's engine, filter or exhaust system, or even fuel changes can impact the car insurance online premium and should be communicated to the insurance company.
Brakes and Suspension
These are essential to the safety of your vehicle, and modifying them can affect your vehicle's performance. Any changes made should be reported to your insurance company immediately.
How Will the Changes Affect Digit's Auto Insurance?
Digit auto insurance can either be third-party car insurance, standalone own damage car insurance or comprehensive car insurance online, which covers both - damage to your vehicle and third-party liability in case of an accident.
Therefore, changes to the car only affect the comprehensive insurance portion, as this policy only covers damage to the policyholder's vehicle.
When issuing automobile insurance, the insurance company considers various factors that affect the cost of the vehicle when calculating the premium.
Any modification to your car's décor, aesthetics, functionality or performance will affect auto insurance premiums. Therefore, you must notify your insurance company of any such changes so they can calculate your tip based on that change.
If you don't inform the insurer about any modification you make to your car, it may make your car insurance claim null and void.
What Other Modifications Can Affect Digit Car Insurance Premiums?
Besides the impact of vehicle modifications, other factors may influence your Digit automobile insurance policy premiums. These are:
- Insurance Type
Switching from third-party liability to a comprehensive plan gives you better coverage and the leverage to add other benefits that can enhance the premium.
- Fuel Type
Car insurance premiums may be higher if the vehicle runs on diesel than a petrol car or a CNG car. If there is any change in the vehicle, or if you get insurance from the same provider for another diesel car, there will be a variation in the insurance premium.
- The Car Owner's Occupation
If you are constantly on the road because of your job and use your car more often, your premium will be higher compared to other people in different professions. Vehicles that are out of the road more often because of job demands are more vulnerable to a higher accident risk than vehicles that are rarely used.
In Review
You must contact your insurance company as soon as possible before making any changes to your vehicle. The insurer will appoint an inspector to re-inspect your vehicle and work on the premium accordingly.
Failure to do so may result in the company denying your claim, so please notify it in advance. Car insurance premiums are impacted by any changes you make to the vehicle or any risk modification, specifically noted during vehicular insurance policy renewal.
Any expensive modification can be viewed as an increased risk for the insurer, for example, installing the additions mentioned below can enhance the car's value and make it more vulnerable to theft:
- Costly and fancy lights
- Tyres
- Sound systems
- Engine optimizations
- Spoilers
- Sports seats, etc.
Thus, it is highly recommended to keep your insurance company in the loop whenever making any modification to your vehicle – whether an upgrade or a downgrade, as it influences the premium and coverage of your insurance.
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