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Impacts of Modifications on Your New India Car Insurance

By Juhi Walia
13 October 2022, 3:26 PM

New India Assurance is a leading general insurance company offering a wide range of insurance products such as car insurance. If you are planning to buy a new car and purchase New India car insurance, do you know how modifying your current car can affect your policy?

Getting automobile insurance is essential, and it's crucial to understand how modifications such as the ones below could result in increased insurance automobile premiums:

  • The changing of the engine
  • Transmission
  • Addition of accessories

However, it doesn't have to be this way!

Car modifications can be significant but sometimes can leave you open to less coverage or higher premiums when it comes time to renew your New India car insurance policy. We have curated some ways you can avoid that scenario by being savvy about what modifications you're getting and whether or not they affect your coverage on an India car insurance policy.

Here are some tips that would help you to know how modifications can affect your insurance in case of an accident.

Do Modifications Increase Your New India Car Insurance Premium Rates?

 If you make any modifications to your car, your premium may go up because of increased risk. If you are planning on modifying your vehicle to improve performance or fuel efficiency, and mileage, do tell your insurer about these changes as soon as possible. This is especially true if you plan on getting a modified engine for your car.

One can do three types of modification with their vehicle:

  • Restoring a car to its original condition
  • Customizing parts
  • Upgrading or improving something already there

Modifications That Improve Performance 

Suppose you are using any speed enhancer technologies or anything else that might improve the performance of your car.

In that case, this will also be factored into the cost of your new India car insurance. carbo hydraulic suspension systems and nitrous oxide injection, for example, could increase your risk level and change how much you pay.

Even if trying to incorporate some fuel-saving mechanism, you must inform New India car insurance about it. To get the best price possible from New India Assurance Company, it is essential to provide accurate information on what has been done to your vehicle.

Aesthetic and Appeal Modifications

If you have a vehicle that has been heavily modified or customized, your insurance policy may see considerable changes.

This is because while most modifications like tinted windows or a rear spoiler are relatively easy to deal with from an insurer's point of view, extensive changes such as the ones below will create more liability for the insurer in case there's a wreck:

  • An oversized hood scoop
  • Huge wheels
  • Low-profile tires

In some cases, these changes can cause insurers to decline coverage altogether. 

Modifications That Enhance Security 

Installing a more extensive/higher security system in your car will heighten the security of your vehicle, bringing in discounts on your insurance premiums.

Devices such as the ones mentioned below can also affect your insurance coverage:

  • Anti-theft device immobilizers
  • Alarm systems
    Engine immobilizers

Both New India comprehensive car insurance and New India standalone car insurance own damage policies will have discounts for policyholders installing such security mechanisms in their vehicles. 

Overview  of New India Car Insurance Company

New India is a government-owned insurance company that has been around for the longest time. The premiums are competitive, and the customer service is friendly. It serves a vast client base in India, so they know what customers want regarding their cars. Their premiums are also very reasonable, so you don't have to break the bank when you need to get coverage for your vehicle.

Key Takeaways

In conclusion, new modifications can change the cost of your insurance policy and your eligibility for discounts.

If you're planning on modifying your car, don't hesitate to contact New India Assurance Company and have them review the policy to see what costs may change and if discounts are available. Remember that most insurers will require you to inform them before making any changes or risk being charged a higher premium due to higher risk factors.

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1. How does theft affect my auto insurance?

Third-party car insurance policies do not cover theft. You will need either a comprehensive or standalone own damage policy to get theft coverage. If you buy a new car afterward, you will need to purchase a new car insurance policy. New India or whichever insurer you may go up to might hike your premium owing to the theft label being marked against you earlier.

2. Can a New India automobile insurance policy be modified?

Car insurance can be modified under two circumstances, before and after purchasing it.

If your circumstances change before purchasing car insurance, your existing insurer should be able to accommodate changes within a specific timeframe.

After buying a policy, you should notify New India Assurance Company immediately if something happens that may cause them to raise or lower your premiums.

Make sure that your new risk factors are reflected in any changes made to your policy—for example, getting married or having children may affect your rates.

3. Can I claim insurance from New India for a modified car?

The modification status of your vehicle can impact your New India auto insurance premiums. Suppose you have had any non-factory modifications made to your car. In that case, that can result in higher premiums, especially if you plan to add additional drivers to your policy.

Some people choose to switch policies if they can find more affordable coverage, even if they are currently covered by what would seem like an excellent car insurance company.

4. Does adding a spoiler increase New India car insurance premiums?

Adding a spoiler typically doesn't affect your car insurance rates. However, exceptions to this rule depend on the cost of the spoiler relative to the cost of other optional parts on your vehicle (such as anti-lock brakes). 

5. What other modifications may increase my rate?

Adding nitrous oxide systems and racing slicks will likely lead to higher premiums because these elements make vehicles more hazardous.

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