How Does Bike Modification Impact Two Wheeler Insurance Premium


19 Jan 2022

Learn about the impact of bike modifications on your two-wheeler insurance premium. Read our blog for tips on how to ensure your policy covers modifications.

Bike modifications are a way for bike owners to give their bikes their personal touch. This has become a very common factor amongst many two-wheeler owners. Some are so passionate about it that they learn the technicalities and do it by themselves. What you do with your bike is your personal choice, as long as you keep yours and your vehicle’s security as your top priority. You must take every precaution to protect your bike now that you have decided to modify it. Buying a comprehensive two-wheeler insurance policy is an infallible way to do that.

It is commendable that you are capable of transforming your bike to suit your needs and that you possess the knowledge to do the same. But before you start modifying your bike, you should also be aware of how those modifications may affect your two-wheeler insurance premium costs. If you are thinking about skipping on getting a vehicle insurance policy in the first place, or you think not informing your insurer is a way to avoid changes in your premium rates, then let us tell you that’s not going to help you in the long run.

But instead, you can understand how the bike modifications affect your premium cost and transform your bike accordingly.

What are the types of bike modifications and how do they impact your premium?

Appearance enhancement modification

When you change the appearance of your bike, it not only makes it visually appealing to you but also puts it more at risk of theft. That automatically puts your bike in the category of high-risk, which means you are more likely to file a claim. Hence, the insurer raises your premium costs as the appearance enhancement modification of your bike increases its overall value too.

Performance enhancement modification

The most common performance enhancement modifications seen on bikes are related to installing speed-enhancing mechanisms. Along with that, you can also get fuel-efficient installations. These modifications pose your bike as a high-risk proposition to the insurers. No matter how much you believe in your riding skills, if your bike is capable of reaching high speeds, the insurer is bound to increase your premium costs.

Do all kinds of bike modifications increase premium rates?

Not all bike modifications add to your premium rates. Some bike modifications can help you get lower premium rates.

Security modifications

Installing anti-theft devices not only improves the security of your bike, but also presents you to insurers as a responsible candidate. Security modifications ensure the safety of your bike, which puts you in the low-risk candidate category, and hence, there is a possibility that the insurer might give you fewer premium rates or you might be able to negotiate a deal on your terms.

Modifications for the disabled

In case you make modifications to your bike on account of disability, then the insurer might not charge you high premium rates or they could also offer you certain discounts. This is to ensure that every individual enjoys the right to own and ride their two-wheeler without facing any discomfort.

Things to know before you modify your bike

You should inform the insurer about the modifications you make. In fact, before you transform your bike, you should check with your insurer just so you have an estimate of your two-wheeler premiums post-modification.

Bike modifications directly impact the IDV of your vehicle, which means they simultaneously increase your premium.

Even though you have the freedom to build your own bike by adding modifications of your choice, you cannot alter the original specifications. The specifications that were added by the manufacturer in the certificate of registration of the vehicle should remain constant throughout every modification you make to your bike.

Your passion to modify your bike should not be compromised because of inexperience. Hence, be thoughtful about who you get it modified from. Only trust experts with your bike.

While altering the modifications of your bike, do remember to adhere to the guidelines laid down by the government of India and the RTO.

Bike modifications directly impact your bike insurance premium. Hence, make wise decisions regarding transforming your vehicle and always keep your insurer informed before or at the time of modification.

They can guide you with respect to the risks involved in the modifications, and you can settle on the best premium rates after having all the information that you and the insurer require.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.