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How Modification Can Affect Your Two Wheeler Insurance?

By Vikas Chandra Das
21 July 2022, 11:46 AM

Modifying your bike has become simpler (at least in cities) in recent years. You can choose from specialists to local garages to give your bike a makeover. Bear in mind, however, that customising your bike will affect your two-wheeler insurance premium.

There are three types of bike modifications in general. These are Security Modifications, Aesthetic Modifications and Performance Improvement Modifications. We have discussed more about all the various types in this article.

What are Two Wheeler Modifications?

Two Wheeler modifications refer to the changes made to a two wheeler in the motive to improve the performance, or to develop the physical structure or to improve the security of the two wheeler. In each case, there is a different impact on the insurance premium. Learn more about the types and the various impacts that these modifications have on the two wheeler insurance policy.

Types of Two Wheeler Modifications and Their Impact on Two Wheeler Insurance Premium

Many bike owners want their bikes to be the focal point as well as operate excellently. For this reason, the majority of them want to have their bikes refurbished. There are three types of bike modifications in general. These are:

1. Security Modifications

This type of modification will help you save money on your two wheeler insurance premiums. They work similarly to anti-theft systems, preventing your two-wheeler from being stolen. It lowers the chances of the insurance provider being forced to pay. You are compensated with low premiums because the insurer's liability is reduced.

If you want to get lower rates, you'll need to get your insurer's permission to make security changes to your bike.

Mr. Roy recently moved to a new and remote town due to his work commitments. Since he had security concerns regarding his two wheeler, he decided to make some security modifications to it. To inform his insurance provider of these changes, he contacted them via their Customer Support Team on call. He was asked to send a written intimation of the modifications. Once the modifications got approved by the insurance provider, he proceeded with their execution on his bike. The security modifications helped reduce the risks associated with his vehicle and as a result, he also got a discount on his premium at the time of subsequent policy renewal.

2. Aesthetic Modifications

Most aesthetic modifications depend solely on your bike's visual appeal. They don't help it work better in any way. A nice-looking bike, on the other hand, is more expensive and more likely to be stolen. If the bike is destroyed, the insurer would have to pay an extensive amount to repair it.

Your premiums will increase if you make cosmetic changes. The magnitude of the increase is proportional to the value of the bike. It's worth noting that cosmetic improvements have no impact on the bike's value. As a result, there is no rise in the insurance premium in certain ways.

3. Performance Improvement Modifications

This category includes any modification that improves the performance of the bike. In most cases, insurance firms consider such changes to be "risky." As a result of these changes, the premium will rise. Modifications can result in increased speed, improved riding comfort, or improved fuel economy. Insurers are wary of performance changes, particularly those that affect speed and handling. It also increases the likelihood of mishaps and excessive wear and tear. In other terms, they raise the probability that the insurer will be forced to pay.

Things to Keep in Mind for Two Wheeler Modifications

If you are planning to modify your two wheeler, these are certain things to keep in mind before you go through with the process of modifications:

  • Healthy Mix Of Modifications - Maintain a healthy mix between aesthetics and performance improvements. Keep in mind that the cosmetic changes do not detract from the bike's overall efficiency. If you value aesthetics over efficiency, modifying and maintaining a bike like this may be costly.
  • Improving The Security Modifications - In addition to making your bike look good, think about how healthy it is. You also have the option of lowering your two-wheeler insurance premiums while you're at it. If you have approved monitoring devices on your two-wheeler, you might be eligible for a discount on your Own Damage premium.
  • Maintain Professional Work - If you don't have direct knowledge of the nuances associated in the process of modification, don't try to change the bike on your own. It is preferable to have professionals handle complicated two wheeler modifications.
  • Inform Your Insurance Company - The modifications should also be disclosed to your two wheeler insurance company. Do not wait for the renewal time to notify the insurance company. Do it straight away. If you have activated anti-theft systems, it is in your best financial interest to update the insurance company, as this will result in a lower insurance premium.

Take Away

Always keep in mind that even a minor change would increase your two-wheeler insurance premium. It's pointless to keep your insurer in the dark about the change. On the contrary, it could void your insurance policy. If the insurance company was not told about the changes, they could deny the claim. As a result, keeping the insurance provider informed about bike modifications is a smart idea.

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