What is the impact of bike modification on your two-wheeler insurance? - Financing Panda: Latest News on Finance, Loan, Business


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Friday, February 7, 2020

What is the impact of bike modification on your two-wheeler insurance?

You may choose to modify the body of your bike after you purchase it, whether it is to improve the bike’s performance, or to add to its aesthetic appeal. When it comes to bike modifications and motor insurance, paying attention to the details is key. This is because only some modifications are usually covered under bike insurance policies. However, insurers do list which modifications are accepted and which ones aren’t. So, in case you are interested in modifying your bike after purchasing it, make sure you pay attention to the implications first.

Take a look at three things that you should be mindful of when it comes to understanding the relationship between bike insurance and modifications.

Inform the insurance company as soon as you can

Before you go ahead and modify your bike, it is best to make a list of all the modifications that you want to carry out and declare them to your insurer. Alterations such as painting the bike, changing the exhaust, air-filters, headlights, mudguards and tyre rims, and replacing engine parts are all considered to be extensive modifications. So, it is best to bring such changes to the attention of your insurer and proceed after seeking approval. This will allow you to claim insurance in the future if you need to, and will ensure that you’re not hassled when faced with an emergency. Also, in case, you have carried out modifications without informing the insurance provider, it is good to notify them at the earliest, and understand your policy’s revised coverage.

Policy on modifications varies from one policy provider to another

Different insurers look at modifications differently. So instead of doing generic research, see which ones your insurance provider or prospective insurance provider allows. Some insurers will allow you to carry out modifications that enhance the functionality and performance of the bike, while others will only allow aesthetic changes. In case of the latter, this too comes with conditions. Post modification, your bike shouldn’t become a high-end model. In other cases, insurers believe that aesthetic improvement makes the bike prone to theft, and once you modify it, they will bar you from claiming insurance on the basis of theft. So, it is advisable that you do your research on the best bike insurance providers and then apply for bike insurance online. This way you will also be able to get all the information in one place, along with benefits such as limited period offers and web exclusive offers.
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Be prepared to pay an adjusted premium for your modified bike

Even if you have chosen comprehensive bike insurance, understand that certain changes, such as engine modifications, will improve the efficiency and value of your bike. As a result, it will cost more to protect it. So, when you carry out modifications, in all likelihood you will have to pay a higher premium. However, this is no reason to avoid a bike insurance policy. In the event of any damage, it is this policy that will come to your aid.

Understanding these factors will help you indulge in bike modifications wisely, while understanding the implication of your decision on your bike insurance policy. You can choose to opt only for those changes that the insurance company allows, or plan for a higher premium depending on your budget and priorities.

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