For many, biking is more than just a ride, it is a passion, a lifestyle and a statement of their personality. This drives bikers to customise and enhance their bikes, transforming them into one-of-a-kind masterpieces.
But amidst this search for uniqueness, riders often overlook an essential consideration: the impact of bike modifications on bike insurance.
Whether you are looking to buy two-wheeler insurance or renew an existing policy, understanding how bike modifications affect bike insurance is vital.
This article will explore the relationship between bike insurance premiums and bike modifications, helping you ensure that your ride remains protected without straining your budget.
How Do Bike Modifications Affect Bike Insurance Premium?
Bike modifications and bike insurance have a multifaceted relationship that largely impacts the modified motorcycle insurance premium, coverage and even policy validity (depending on the insurer).
Since bike modifications usually enhance the bike’s performance or aesthetics, they increase the risk of accidents and theft.
This increased risk makes the bike more susceptible to damage, leading insurers to perceive bike modifications as a higher liability.
As a result, bike insurance companies adjust the modified motorbike insurance, which in turn directly affects the policy premium, grace period in bike insurance and other relevant elements.
How Different Types of Bike Modifications Influence Your Bike Insurance Premium?
| Type of Bike Modification | Name of Modification | Impact on Bike Insurance Premium | Reason Behind the Impact |
| Performance Modifications | Engine Upgrades | Premium prices go up | An increase in engine horsepower can lead to aggressive riding and an increased risk of accidents. |
| Exhaust Systems | Premium prices go up | High-performance or loud exhaust systems can draw unwanted attention, increasing the likelihood of theft. | |
| Suspension Upgrades | Prices do not change or slightly go down | Improvements in the bike’s handling dynamics and stability are usually seen as favourable. | |
| Appearance Modifications | Body Kits and Custom Paint Jobs | Premium prices go up | Such upgrades increase the overall value of the bike, increasing the IDV and, thereby, the premium. |
| Wheels and Tyres | Premium prices go up | Non-stock or upsized tyres can alter a bike’s handling and stability. This may be considered as a safety concern by the insurer. | |
| Light and Audio Systems | Minimal or no impact | These types of modifications do not influence a bike’s performance/value, thus, it does not affect the premium. | |
| Safety Modifications | Anti-Lock Braking Systems (ABS) | Premium prices go down | An ABS-equipped bike tends to offer improved safety by minimising the risk of skidding, loss of control and collisions. |
| Crash Bars and Engine Guards | Premium prices go down | Crash bars and engine guards absorb impact and protect vital components of the bike from the damage associated with minor accidents or drops, which in turn, minimises repair expenses. | |
| Security Systems | Premium prices go down | Security systems, such as alarms, GPS and immobilisers, discourage thieves and make theft more difficult. |
Things to Remember When Opting for Bike Modifications
Purpose of Bike Modifications
Clearly explaining the desired modifications to the chosen bike modification hubs or garage is essential to ensure that you receive the best-suited alterations.
Therefore, it is suggested that you explain your riding style, performance expectations and budget constraints to the experts to get the result that meets your needs, budget and safety considerations.
Disclosure to RTO
Compliance with local laws is a crucial aspect of bike modifications. This includes reviewing Regional Transport Office guidelines and disclosing modification details to the authorised personnel.
This step ensures that your bike remains street-legal and helps you steer clear of potential fines or licence suspensions.
Informing the Insurance Company
Notifying your insurer beforehand is vital to enjoy continuous bike insurance coverage and avoid potential disputes when raising a claim.
Disclosing modifications allows the insurance company to update bike insurance policy terms according to the bike’s value, risk profile and performance.
This ensures transparency and accuracy in two-wheeler insurance premium calculation and helps you stay informed about potential premium changes, avoiding unexpected financial burdens.
Maintaining Proper Documentation
Keeping receipts, invoices, certification and modification records is another important step in managing bike modifications and two-wheeler insurance.
Proper documentation ensures regulatory compliance, verifies modified bike insurance validity, facilitates claim processing and helps the insurer determine exact premium value, protecting your interests and offering peace of mind.
Summing Up
As a responsible bike owner, understanding how bike modifications can affect bike insurance is vital as even a single modification can significantly increase or decrease modified bike insurance premiums.
In addition, informing the insurer about modifications serves as a key factor in maintaining a valid policy, preventing potential disputes and safeguarding financial well-being.
To ensure seamless and uninterrupted bike insurance coverage, purchase bike insurance from a reputed insurer like TATA AIG and do not forget to consult with your insurance company and disclose all modifications, regardless of how minor they seem.
