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Would you believe if we say that bike modification affects your bike insurance premium?

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Published on April 12, 2021. EST READ TIME: 4 minutes

Your bike is a prized possession, and you want it to reflect your signature style. You go the extra mile to improve its performance as well as its aesthetics. You also provide it with a shield in the form of BIKE INSURANCE POLICY to protect it from damage and theft. However, did you know that everything that you add to your standard bike model affects the premiums? Let us go over the various customizations that bike riders enjoy and how even the most minor modifications can impact bike insurance premiums.

Types of Bike Modifications and their Impact on Premium

Regardless of nature and extent, bike modifications are not covered under your basic bike insurance policy. Based on the changes you make, your premium is bound to fluctuate.

1. Performance Modification: Installing a speed-enhancing mechanism or fuel-efficient systems to increase its bike’s speed improves performance. However, as the speed increases, so does the chances of an accident and, subsequently, the number of claims. Insurers view such modifications as a potential risk and thus increase the premium for bike insurance to mitigate the risk.

2. Security Modification: If you have installed anti-theft devices such as locks and alarms on your bike for safety and security, it will fall into the low-risk category. This is because they reduce the likelihood of a bike being damaged or stolen. As a result, insurance companies offer discounts on two-wheeler insurance, allowing you to save money on premiums. However, please bear in mind, the anti-theft or security devices should be certified by the Automotive Research Association of India (ARAI).

3. Visual Modification: Customizing your bike to give it a more distinct look comes with a price. Changing the bike’s colour, headlights, wheels, adding fibre parts for a sporty look, and installing LED lights, increase the bike’s value, resulting in a higher two-wheeler insurance premium. Besides, since visually modified bikes are attractive, it increases the risk of theft.

4. Modifying for the disabled: A bike could also be modified for reasons other than appearance or performance. Many riders look for modification that is friendly for the differently-abled. There is no extra premium charged for such modifications. Rather, the insurance provider offers a discount, but the policyholder must notify the insurance provider about the modification details when buying or renewing the policy.

Conclusion

You would want to make your prized possession one of its kind by customizing it, we understand. But, before you make any modifications to improve its appearance and value, check with your insurance provider to see how the premium on your bike insurance policy will be affected. As previously stated, modifications for the sake of safety will not increase the insurance premium, but those done for aesthetic reasons can be costly. However, because the bike is yours, the decision is yours. Do not forget to notify the insurer of any modifications when buying or renewing the policy.

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

This blog has been written by:

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance

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