Performance Tuned Car Insurance: Costs, Rules & More

Posted on: Jun 12, 2025 | 3 mins | Written by: HDFC ERGO Team

Performance Tuned Car Insurance: Costs, Rules & More

Car Insurance Guide for Performance-Tuned Vehicles

Modifying your car for better performance is exciting, but it comes with extra responsibilities. Upgrades like turbochargers or engine remapping affect your insurance costs. In India, car insurance for tuned vehicles tends to be higher as insurers consider these cars riskier. This guide explains why premiums increase, what’s covered, and how to save money while protecting your performance vehicle.

Why Tuned Cars Have Higher Insurance Premiums

Insurers calculate premiums based on the risk and repair cost of a vehicle. Performance modifications increase both:

• Tuned engines and parts lead to higher chances of accidents.

• Modified vehicles cost more to repair due to rare or imported parts.

• If you don’t declare modifications, your claims may be denied.

• According to 2024 estimates, claim costs for tuned vehicles are nearly twice that of standard ones.

India’s Growing Tuning Market

With rising income and access to aftermarket parts, car tuning is booming in India:

• ECU remaps and turbo kits have become more popular since 2022.

• Online sales of performance parts have increased by 65%.

• Most insurers still treat tuned vehicles as high-risk, limiting coverage options.

Legal Rules for Modified Cars

Performance tuning changes your vehicle’s specifications. According to Indian law:

• You must update your RC book if your engine or chassis is altered.

• The modified vehicle must pass emission and fitness tests again.

• Keep official invoices of the installed parts.

• Insurers may ask for inspection videos of the modified vehicle.

Insurance Coverage for Performance Cars

Look for insurance policies that offer the following features for tuned cars:

• Own-damage cover based on the enhanced value of the car.

• Add-ons for engine protection and zero depreciation for modified parts.

• Special covers for damage during track-day events.

• Agreed value coverage for expensive aftermarket components.

What Affects the Premium?

Several factors decide how much you pay for car insurance for performance-tuned vehicles:

• Engine capacity and brake horsepower (bhp)

• Rarity and price of the modified parts

• Area where the vehicle is used and parked

• Driving record and history of insurance claims

• Value added to the car because of tuning

How to Save Money on Premiums

You can reduce insurance costs with the right strategy:

• Install anti-theft devices to get up to 5% discount

• Bundle your car insurance with bike or home insurance

• Increase your voluntary deductible if you can afford it

• Choose insurers that understand tuned cars and offer specialized plans

• Avoid small claims to build a No Claim Bonus (NCB)

Why Full Disclosure is Important

One of the biggest mistakes owners make is hiding modifications. This can backfire:

• Claims may be rejected if mods weren’t declared upfront

• Some insurers may even cancel your policy mid-term

• Always keep documents, photos, and part invoices ready for inspections

Best Policies for Tuned Cars

Look for these features when selecting a policy:

• Comprehensive plan with declared value of all modifications

• Add-ons like zero depreciation, engine cover, and roadside assistance

• Policies that accept foreign and aftermarket parts with valid bills

• Good claim settlement ratio and user reviews

• Transparent process for updating your policy when new parts are added

Conclusion

Performance tuning makes your car stand out, but it also demands proper protection. By choosing the right car insurance policy and declaring all modifications, you stay safe on the road and avoid financial shocks. Compare policies, ask the right questions, and choose coverage that understands what your modified car is truly worth.

FAQs

Do I need to tell my insurer if I remap my engine?
Yes, any performance-related changes must be declared. It helps insurers assess risk and process claims fairly.

Is zero depreciation cover available for modified parts?
Yes, but only with comprehensive policies that include this add-on and proper documentation of the parts installed.

Can I transfer my existing policy to a tuned vehicle?
Only if the insurer allows it. Some insurers require a new policy if major modifications are made.

Will my premium decrease if I remove performance parts?
Yes. Inform your insurer and request a reassessment. They may adjust your premium accordingly.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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