Nowadays, customizing or modifying bikes has become very popular among young riders. From stylish graphics to high-performance parts, youth enjoy personalizing their motorcycles based on their tastes and riding needs. However, an important question arises – will these modifications lead to higher bike insurance premiums?
Modifying your stock bike does impact the insurance premium to some extent. Specific enhancements may be risk-prone and, hence, costlier to cover. However, minor modifications for aesthetic appeal may only affect premium a little. Read on to understand how custom parts affect two-wheeler insurance pricing.
Common Types of Bike Modifications
Before we analyze insurance impact, first understand what customization bike owners frequently go for:
Functional Modifications
- Engine tuning and performance modifications
- Upgraded brakes, suspension, etc.
- Fitted gearbox protections like crash guard
- Added electrical accessories
Aesthetic Modifications
- Graphic stickers, decals, paint jobs
- Chrome plating or color-coding parts
- Custom wheels, colored alloys
- LED lights, colored headlamps
Security add-ons
- GPS vehicle tracking system
- Advanced central locking system
- Anti-theft alarms
- Disc brakes, immobilizers
So, based on the type and degree of alteration – the premium may vary.
How Can Bike Customization Raise Your Premium?
Here are some ways performance parts or major modifications can increase two-wheeler insurance costs:
1. Alters Actual Value of the Bike
Add-ons like alloy wheels, nitrox suspensions, LED lights, etc., enhance your bike’s overall value. The premium rises proportionately if these parts significantly increase the bike’s value.
2. Increases Risk of Theft
Expensive fittings like GPS trackers, gear lock guards, etc., make your bike a tempting target for thieves. Insurance companies perceive a higher theft risk and charge more.
3. Leads to Wear and Tear of Parts
Performance tuning parts, like altered pistons, turbo kits, etc., make the engine work harder, causing faster wear and tear. Insurers may ask for a higher premium to cover this additional damage risk.
4. Voids Manufacturer Warranty
Significant alterations, like engine swaps, chassis extensions, etc., can void the maker’s original warranty. A lack of warranty signals an unreliable bike to the insurer, increasing the premium cost.
Tampering with the bike’s core structural design, like changing chassis dimensions, can also void the factory warranty, which insurers see as risky.
5. Raises Repair Costs After Accident
When damaged, body graphics, alloy wheels, etc., need specialized repairs. Higher garage bills for fixes are covered by charging a higher premium.
When Bike Enhancement May Not Impact Premiums
Small custom jobs lend uniqueness to your bike but may not significantly increase the risk perceptions of insurance providers.
These include:
- Simple decals or graphic stickers
- Accessorising with saddle bags, mobile holder, backrest, etc.
- Installing basic utility lights
- Paint protection films, scratch guards
- Use of helmet locks and small security systems
Such modifications may not significantly alter the original price or repair costs, so you can customise without worrying about rising insurance costs.
Tips to Get a Discount on Modified Bike Insurance
Even if significant customisation enhances your bike value significantly, you can still find ways to reduce insurance premiums:
- Increase the voluntary deductible amount, which lowers the base premium outgo.
- Opt for a standalone damage cover only if bike usage is minimal. This works for custom-show bikes that are rarely taken out on roads.
- Install anti-theft devices approved by the insurer to avail of a discount. Certified alarm systems can give a around 2.5% discount on OD premium.
- Shift insurance provider—some may offer better deals for modified bikes. A different insurer may rate the risk of your custom bike better.
So, with the right tips, you can continue enjoying reasonable protection for your favourite Hot Wheels!
Inform the Insurer Before Modifying Your Bike
Review the policy terms on informing modifications—some need prior approval. Check if written intimation is required before changing parts.
- Submit invoice proof and valuation certificate post-customization. Keep documents ready for re-assessment of bike value.
- The insurer may inspect the bike or seek an expert opinion on the changed risk profile.
- Change in premium is conveyed after assessment. This may be done through endorsement reflecting the revised premium.
- Hiding alterations and making claims later can result in rejection. So, transparency about modifications is key for valid claims.
What to Keep in Mind When Modifying Your Bike?
Here are some general guidelines around customizing your two-wheeler and insurance implications:
- Avoid illegal bike modifications that are not permitted as per RTO norms. Breaking rules can make policy void.
- Engine tuning by unauthorized mechanics may impact claims. A lack of proper invoices for tuning can cause claim denial.
- Overloading a bike with too many electrical accessories can damage systems. An excess electrical load can lead to a short circuit and affect insurance.
- Using false spare parts voids insurance coverage in some cases. Fake parts like counterfeit brake pads are not covered.
- Costlier bikes have higher premiums, so customize them within the budget. Modification costs for superbikes can exponentially increase premiums.
- Stay aware, stay legal, and don’t go overboard with alterations. This will keep your insurance affordable even after minor customization.
Conclusion
Minor enhancements may only move premiums slightly, but you can customize it to your taste. However, substantial modifications do imply higher associated risks. So, inform your insurer and pay the extra premium for adequate protection.
While it’s tempting to trick out your bike with fancy fittings and balance customization with insurance costs, evaluate if that turbo kit is worth pushing up your premium by 15-20% or if you can skip it for now.
A customized bike reflects your personality, but don’t let it burn a hole in your pocket. Prioritise safety first because no amount of custom paint can cover hospital bills if met with an accident.