How Do Modifications Impact Bike Insurance?

A two-wheeler is more than just a vehicle. It is a passion and a style symbol for many. Hence, alterations for aesthetic appeal, enhanced performance, and safety are common. While such changes add to your motorbike's value, they also impact the Bike Insurance premium. So, the next time you opt for them, consider this aspect. 

It is best to understand the different types of modifications and their impact individually. This way, you get to make an informed decision based on your needs. Whether your motorcycle is old or new, it is essential to learn about its effects on the premium. Here are some of the common modification types and their impact:

Aesthetics

These are changes you make to increase your two-wheeler's visual appeal. This includes changing its colour, adding graphic designs, replacing seat covers, including fibre parts, and changing headlights. These efforts end up increasing the motorbike's market value. Also, the better it looks, the more attractive it is for thieves. So, the overall risk also increases. The other factor is more loss during accidents due to additional parts. Hence, you pay a higher premium. 

Performance-based 

Most bikers strive to make their motorbikes stronger, better, and faster. For this, they use fuel-efficient systems and speed-enhancing mechanisms. These dramatically improve its functioning. It is a personal choice to include such modifications based on your performance expectations. However, increased speed poses risks for accidents. Insurers view this as a cause for frequent claims. Therefore, they increase the Bike Insurance premium. 

Special adjustments 

In exceptional cases where the changes are essential, you do not get charged with a higher premium. This includes modifying the vehicle's functioning to equip the differently-abled. Instead, insurance providers offer a discount for such modifications. This is to encourage free movement and comfort. 

The only condition is to state the details regarding the same while buying. If you have made such adjustments at a later stage, inform about the same during renewal. 

Security

Unlike other modifications, this one lets you save on the premium amount. When you take the required steps for your safety, you reduce the risks. Hence, insurers reward you with low premiums. This applies to all types of General Insurance. When you have anti-theft devices like locks and alarms, they ensure protection from theft. Therefore, you enjoy lower insurance costs. This helps in safeguarding your No Claim Bonus by avoiding small theft claims. 

External fittings

Some modifications involve adding to the bike without altering it. For instance, fitting a luggage carrier to increase storage. It is an external part yet impacts the functioning of the motorcycle. Hence, inform about the same to the policy provider. Similarly, convey any other changes regardless of their intensity. Maintaining such transparency assures smooth claim settlement. 

As they add to your premium, choose the modifications carefully. Consider your needs against the cost before making the decision. Also, check with the insurance provider for making specific changes that do not fall under the mentioned categories.

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Created on Aug 23rd 2021 06:47. Viewed 391 times.

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