How will Modifications Affect My Car Insurance?
Anyone who purchases a car would like to have certain modifications made to it unless it is a fully loaded vehicle. However, what one has to be aware of is the way in which these modifications can affect their car insurance claims.
All modifications made to the standard car after you purchase would have to be notified to the insurance service provider. It would then make it possible for them to make alterations if any to the insurance amount depending on the type of modification.
While some modifications can affect your car insurance in a positive way there are others which may end up affecting it in a negative manner in terms of payment. So, as a car owner it is important that you be aware of any modifications you might want to make to your car.
Positives on Modifications
There are certainly some modifications that can be installed and can reduce the premium on the car insurance. For instances safety modifications like a parking sensor or adding a dashcam can be one among these that you can have installed on your car legally.
Negatives on Modifications
Many modifications that you make towards the car’s performance can impact your payment on the car insurance. In most cases when a car engine is modified for better performance the insurance significantly goes higher too.
There are chances of a car insurance policy being invalidated if certain modifications are not disclosed to the service provider. In some cases, it can be considered hiding modifications from the insurer which can cause more trouble for you as a car owner.
Knowing The Regulations
It may also be a good idea to consider the regulations and laws before modifying your car. There are certain modifications that are considered illegal that you might want to keep well away from. These can certainly affect your car insurance in a negative manner.
Importance of Disclosure
Whether you make modifications that are for safety or looks it is always better to have them disclosed to the car insurance company. This can often make or break the way in which an insurance policy works in a country and end up deciding if you get paid or otherwise.
There have been many instances where the insurance was considered void due to modifications not being disclosed although they were minor. Talking with your insurance agent or the service provider about modifications is always a good idea.