How changes to your car affect the insurance policy: report

Depending on the changes made, your auto insurance premium may increase or decrease.


Car enthusiasts often modify their car to improve its aesthetic appeal, add more comfort, or improve performance. These changes can affect the insurance premium of the vehicle as they can compromise the safety aspect of the vehicle.

Whether you are modifying your car or even adding accessories that could alter the safety or performance of a car, you must inform the car insurance supplier of these modifications. Depending on the changes made, your auto insurance premium may increase or decrease.

Changes that may increase the auto insurance premium

New paint job

Specialized paints such as decorative decals or eye-catching designs painted on your car can increase the risk of theft and may affect the car’s insurance premium.

Change car interiors

You must inform your insurer of any changes made to the interior of the car. This includes changing the steering wheel, pedals, audio system or even the seats of the car. The quality of the products used also influences the insurance premium.

Engine modification

People often modify the engine of the car to improve its performance. Such modifications can help the vehicle achieve higher speed and faster acceleration. On the other hand, such changes also increase the risk of accidents or even theft, increasing the car’s risk profile.

Therefore, any modification to the engine, such as the addition of a turbocharger or a nitrous oxide unit, will increase the amount of the insurance premium.

Motor replacement

The insurance company charges a standard auto insurance premium on factory-installed engines based on model brand, make, and year of manufacture. Therefore, replacing the original manufacturer’s engine with a non-standard engine will affect premium costs.


Nowadays, it is common to replace standard car rims with alloy rims or even wider tires. Installing such tires can increase the value of the car or the risk of theft or both. Either way, this often results in higher insurance premium costs.

Suspension system and brakes

Upgrading or modifying your brakes and suspension system can change the overall risk profile and safety score of the car. Advise your insurer to reassess your insurance premium in the event of such modifications to your car.

Certain modifications can reduce the auto insurance premium

Not all changes result in a higher car insurance premium. For example, installing an ARAI-approved anti-theft alarm system or tracking system in your car reduces the risk of theft or break-in. Likewise, installing parking sensors will reduce the risk of accidentally hitting your car against another car or a wall when backing up.

Such modifications reduce the risk for the insurer. Therefore, the insurer is likely to encourage such customizations by providing discounts on the Personal Damage portion of the auto insurance premium.

Benefits of a Comprehensive Car Insurance Policy

It is important to inform your car insurer of any modifications/changes made to the car. Failure to do so could result in the rejection of the claim. Also opt for authorized service garages and certified parts to make modifications to your car.

A comprehensive car insurance policy should cover all damage to you, your vehicle and third parties caused by the accident. Offered by Kotak General Insurance, Kotak Car Secure is a comprehensive car insurance plan that protects your car against damage from natural and man-made disasters (including damage to third parties in an accident) .

This story is provided by BusinessWire India. ANI shall in no way be responsible for the content of this article. (ANI/BusinessWire India)

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)