As a motorbike enthusiast, you wouldn’t mind spending hours and splurging lakhs of rupees on decking up your bike. You would love to install the latest gadgetry and design elements.
Two-wheeler modifications can improve your bike’s performance and raising its swag. But, wait! You need to know that it can increase your insurance premium as well.
The premium could rise if the modification increases the insurer’s liability in case of a claim. Consider these factors before you decide to modify your ride.
This is any change that increases your bike’s performance. Modifications could lead to increase in speed, better riding convenience or fuel economy. Insurers are wary of performance modifications, particularly when they relate to speed and handling. It also risks chances of accidents and excess wear and tear. In other words, they increase the probability of the insurer having to pay.
Let’s consider an example. If you add a feature that boosts your bike’s top speed, it is likely that you will go faster. Higher the speed, higher are the chances of accidents, thus giving rise to a claim situation. To cover this risk, your insurer may hike your premium.
Most aesthetic modifications only leverage the visual appeal of your bike. They do not enhance its performance in any way. But a good-looking bike is more valuable and prone to theft. If damaged, your insurer will have to bear a high sum for replacement of the bike.
If you get aesthetic modifications done, your premiums shoot up. The extent of the increase is proportionally dependent on the value of the bike. You should note that cosmetic changes do not assist in raising the bike’s value at all. So, in a way, there is no increase in the insurance premium.
You can reduce your insurance premium with this category of modifications. They are like anti-theft devices that protect your two-wheeler from being stolen. It reduces the probability of the insurance company having to pay up. As the insurer’s risk is reduced, you are rewarded with low premiums.
Note that you need to gain the approval of your insurer towards security modifications of your bike, if you wish to get lower premiums.
Look for Bargains
The two-wheeler insurance industry does not have any universally accepted norms or standards. Insurers will classify your bike in different ways. They apply various increments for the same modification.
Are you planning a serious modification? Don’t forget to ask different insurers about the extra premium they will charge. Some insurers may not charge anything for a modification while others may charge heavily for it.
Always remember that even a single modification will increase your two wheeler insurance premium. Not informing your insurer about the modification won’t do any good. On the contrary, it can invalidate your insurance.
If it all, your bike meets with an accident and the insurance company notices a modification, it can bluntly refuse to honour your claim. So, always keep your insurer updated.