Modification as well as your auto insurance policy
'The only thing that is constant is change', wrote Heraclitus, a Greek philosopher. He was right. That is why many of you are making changes to your house, your wardrobe, your way of life, etc. In fact, many car owners also make alterations in their cars. They can fit various accessories or modify their cars as per the requirements. Major modifications towards the car are carried out for an additional reasons –
1. To change the look of the car – This is done more with a view to make the car look more trendy and classy thereby reflecting the style sense of the owner
2. To result in the car suitable for a disabled user – If the intended passenger from the car is disabled, modifications might be designed to enable easy mobility of the disabled individual
3. For suiting the driving terrain – if the car is usually driven off-roads, changes can be made to the car's tyres for suiting the driving terrain
4. For improving the performance from the car – this really is relevant when speed boosters or other performance oriented modifications are carried out to the car
5. For changing the fuel type – in many cars, CNG kit or bi-fuel tanks are installed for fuel efficiency. This is also a type of modification
Modification and insurance
If the car is modified, it might change the value of the car. If the value of the car changes the premium would be affected. Therefore, oftentimes of modification, the vehicle insurance plan ought to be modified. The insurance policy will include details of the modification done, the elevated worth of the vehicle and also the subsequent rise in premium. So, if you're modifying your vehicle by any means, you should consider modifying your car insurance policy too. The following things should, therefore, be carried out in such cases –
o Tell your insurance company concerning the modification being done or already done around the car
o Submit all the relevant bills, documents along with other paperwork which show the details of the modification and it is cost
o The insurer would, then, analyse if the said modification has grown the Insured Declared Value of the car or not.
o When the IDV should be increased, the company would increase the IDV and fix the new increased premium.
o You would, then, need to pay the extra car insurance premium in line with the increased IDV.
If you do not inform the insurer of the modification, your vehicle insurance plan does not reflect this modification of the car. In the event of any claim once the car is broken and it is sent for repairs, any damages sustained through the modified areas of the car wouldn't be covered. The insurer would, therefore, never pay for just about any damages incurred on any modifications. Moreover, when the insurance provider does not record the said modification, you may land in legal trouble in the event you face any legal liability.
You've now learned how adjustments to car can affect insurance plan. So, do whatever modifications you would like on your car but remember to obtain the same updated inside your car insurance policy. You might be required to pay an additional premium however your modified car would be completely covered against any unforeseen contingencies.
