Modified Car Insurance: How Car Modifications Impact Your Car Insurance Policy?

Imagine cars as blank canvases awaiting an artist’s transformative touch, where each tweak transforms them into unique masterpieces. In the world of automobiles, cars are much more than just mere machines. From the sleek sports cars to the rugged charm of an off-roader, every car embodies a blend of powerful engineering and aesthetic appeal.

Say you buy a car that’s perfect at the moment. As time goes by, you would want to personalise it as per your taste - whether through sleek interiors, custom paint jobs, or unique modifications, giving it a personal touch. It isn’t just about personalisation; it’s a thriving culture celebrating artistic flair and ingenuity.

But does it impact our finances? Yes, we’re talking about insurance premiums, warranties and even resale value. Getting a lowdown on these details is key for anyone eyeing a dip into the car modification scene, ensuring you can navigate the twists and turns smartly.

This article dives into the realm of modified cars, exploring the nitty-gritty of various adjustments—from slick exterior upgrades to turbocharged performance boosts. The essential insights will help car enthusiasts like you navigate this exciting world of modified car insurance online with clarity and confidence.

But how about we first get a clear understanding of modified cars?
 

What Are Modified Cars?

Modified cars are the special cars that have been changed or made better in terms of how they operate and look. The insurance industry has a unique method of classifying these modifications into specific categories.

Let’s look at some of the essential modifications below -

• Customised paint jobs
• Modifications in performance
• Structural changes to the frame, body, or chassis of the car.

Now, rev up your imagination and transform your car into a personalised masterpiece with the modifications below!
 

Types Of Modifications That Can Be Done To The Car

Car modifications are done to customise a car by altering it in terms of design and performance. Let’s look at some of the most common modifications below -

• Exterior Modifications
  External modifications are a popular form of customisation that changes your car’s outer appearance. For instance, painting appealing graphics on the body of your vehicle is a common practice. Relatedly, you may want to install some lights on it. In today’s bustling car market, you get unbelievable options. So you can just use your creativity to make your car look more attractive.
  Additionally, you can also change several aspects of your car’s bodywork, such as flared wings, bonnet, panels, tyres, etc. These changes make your car more eye-catching without affecting your car’s performance directly.
   
• Interior Modifications
  You can change the aesthetics of your car by modifying the look of the dashboard and car seats. Additionally, you can install a music system, make adjustments to the air conditioner, add Bluetooth, dual horns, etc., for more pleasant journeys ahead.
   
• Modifications Changing The Performance Of The Car
  People like modifying their cars to enhance the performance output. Alterations made to the car’s engine, air filter, exhaust system and so on directly affect how it performs. So, how can you improve the functioning of your car?
• • You can increase the speed of your car by adding nitrous oxide to the mechanics of the car.
  • You can improve the car’s stability by integrating broader tyres.
  • You can enhance the security features by adding an anti-theft device or changing the locking system of your car. 

Now, the vital question - Do car modifications impact your insurance premiums? Let’s explore how these tweaks can shift gears in your coverage!
 

How Do Modifications Affect Car Insurance?

When you modify your car, only the comprehensive car insurance policy is affected. What about the third-party liability policy? It remains unaffected. Your car is evaluated, and the level of premium is determined when you buy a comprehensive car insurance policy. So, if you modify your car, the car value may significantly increase. Thus, you should always inform your insurer about any such modifications done to your car from your end.

If you don't inform your insurer about modifications and your car is damaged in an accident or natural calamity, they might refuse compensation or only cover the original parts, not the modifications. Your insurer can reassess the vehicle and adjust the modified car insurance policy accordingly when you inform the insurer of any such modifications.

However, you must be aware of certain things here. A standalone car insurance policy generally does not include coverage for externally fitted parts that do not come from the car manufacturer. Nonetheless, you may opt for their inclusion in the plan by using another accessory cover called an add-on. But it's worth noting that this can raise your plan's premium. 

Wondering how car modifications can impact your finances and resale value? Here’s a roadmap to consider before you revamp your ride!
 

What Are The Things To Consider Before Modifying The Car?

You can opt for car alterations by complying with the legal car modification regulations in India. If you have chosen to modify your vehicle, take into account these things before proceeding -

• The Cost Required For Car Modification
  It is really expensive to modify your car. So, it is important that you plan on which part of the car you would like to enhance in order to save some money for these improvements.
   
• Car Safety
  Never compromise on the safety of your car when you are going to modify it. Don't remove safety features to improve your car's performance. 
   
• Warranty
  Any alterations to a car can impact the warranty on your current vehicle. The manufacturer will say that the modified components caused the damages and may reject your claim for warranty benefits. If you have an extended warranty, avoid making any modifications to your car.
   
• The Resale Value Of Your Vehicle
  Modifying your vehicle can impact its value once you wish to resell. If you modify your car, you might get a lessened value when reselling your altered car to a buyer.
   
• Insurance Premium
  Modifying your car's engine or other parts can lead to a higher insurance premium.
   
• Availability Of Car Parts For Old Cars
  There is a chance that manufacturers may discontinue some of the old cars, so it may be difficult to find their components in the future. Even if you find something similar, you have to take into account its cost and the benefits you get.
   

Wrapping Up!

Transforming your car through modifications is like sculpting its personality, blending style and performance to reflect your unique taste. However, each tweak comes with its own set of considerations. From navigating the costs and potential impacts on car insurance for modified cars to safeguarding warranties and preserving resale value, every decision is pivotal. Remember, transparency with your insurer about these changes is essential to avoid any speed bumps during claims. By harmonising creativity with pragmatism, you can elevate your driving experience while ensuring peace of mind on every mile.