Insurance Guide for Modified or Customised Bikes

Posted on: Jul 11, 2025 | 3 mins | Written by: HDFC ERGO Team

Insurance Guide for Modified or Customised Bikes

Customising your bike is more than just a hobby. For many people, it is also an investment in how you want your ride to look, feel, and perform. From upgraded exhausts to a complete rebuild, every change adds value. But what many riders overlook is that these modifications don’t always get covered by standard insurance policies. You could be left paying out of pocket if something goes wrong and you haven’t declared those changes.

Getting the Right Insurance for Your Custom Motorcycle

Custom additions, such as aesthetic touches to engine overhauls on modified bikes, change how insurers view your vehicle’s risk profile. You may face significant losses during claims if not covered correctly. That is why it is crucial to understand how insurance works for a custom or modified two-wheeler.

Understand What Counts as a Modification

You must understand what qualifies as a modification before you consider coverage. This is where most policy issues begin. Insurance providers define modifications as any alterations from the manufacturer’s standard design, specifications, or performance capabilities. These could be:

• Performance Mods:

Upgrades like turbochargers, free-flow exhausts, air filters, or ECU remapping.

• Structural Changes:

Swingarm extensions, chopped frames, altered suspensions, or handlebar replacements.

• Aesthetic Mods:

Custom paint jobs, vinyl wraps, decals, unique lighting systems, or seat upholstery.

• Functional Add-ons:

GPS trackers, additional fog lights, mobile mounts, or custom sound systems.

Even if these changes improve your riding experience or visual appeal, they can significantly alter the value and safety of your bike. They will also directly impact how an insurer sees your risk profile.

Disclose All Modifications Upfront

Transparency is your best ally while buying a policy for a modified bike. Hiding upgrades might save you a bit on the premium, but it can cost you dearly during a claim. When you buy two wheeler insurance, insurers expect a full disclosure of all modifications. Not doing so can lead to:

• Claim rejection during an accident or theft

• Policy cancellation due to non-disclosure

• Loss of financial protection when it is needed most

Most insurers may also ask for:

• A declaration of modifications at policy inception or renewal

• Photos and videos of the altered parts

• Invoices to determine the value added

In some cases, they may also request a vehicle inspection before issuing coverage. Always play safe by keeping your insurer informed.

Choose the Right Coverage

Not all policies are built to protect your modified ride. Let us understand how your insurance options stack up:

1. Third Party Bike Insurance

This is the basic and legally mandated cover. It protects you from liability if you cause injury or damage to someone else. However, it does not cover:

• Any damage to your own vehicle

• Theft or loss of modified parts

• Natural disasters or fire

This option might be budget-friendly, but it is not the smartest choice for a custom bike with high-value additions.

2. Comprehensive Bike Insurance

This is where serious riders go for peace of mind. Comprehensive bike insurance protects not just your base bike, but also declared modifications (if accepted by the insurer). It includes:

• Accidental damage to your bike

• Theft, vandalism, floods, or fire

• Coverage for accessories and modifications (through add-ons)

Even if you own a modified scooter, scooter insurance under the comprehensive category offers the same all-round protection. You can even add covers like zero depreciation or engine protect for full-circle security.

Valuation and Premium Calculations

Modifications add to your bike’s look and value, and your policy should reflect that. Every insurance policy is based on something called the Insured Declared Value (IDV), which is the current market value of your vehicle. When you modify your bike:

• The IDV typically increases to include the value of those enhancements

• The premium goes up slightly, but so does your claimable amount

• Claims are settled based on this updated value, not the base price

Updating your insurer about the latest value ensures fair payouts and avoids disputes. Think of it as protecting your investment, and not just as paying a premium.

What Insurers May Not Cover

Insurers do not welcome every modification, especially if it crosses into unsafe or unauthorised territory. Some modifications could lead to outright coverage refusal or claim rejection, particularly if they:

• Violate road safety standards (like illegal exhaust systems or extra-bright lights)

• Are installed by uncertified mechanics or DIY setups

• Involve risky use cases like racing or off-road stunts, not covered under normal usage

Keep Documents Handy

Paperwork may not be exciting, but it is what saves you during a claim. If your modified bike gets into an accident or gets stolen, the only thing backing your claim is your documentation.

Here is what to maintain:

• A list of all modifications with dates and descriptions

• Invoices from recognised dealers or garages

• High-quality photos or videos of the bike before and after mods

• Any written approval or inspection records from the insurer

Conclusion

Standard policies won’t always offer the coverage you need when insuring a modified or custom-built bike. A third party bike insurance covers legal liabilities, but it won’t protect your custom parts. You need to opt for comprehensive bike insurance and declare all modifications upfront. The same applies to custom scooters. Choose a scooter insurance plan that reflects the real value of your vehicle. Accurate disclosures, the right add-ons, and updated IDV are essential to ensure your unique ride is properly covered.

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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