“What can be done to keep your car insurance policy prices down?” you must be wondering. However, the more pertinent question is, “how do I evaluate the current factors driving up my car insurance costs?”
Above all, regardless of your gender, age, or total driving experience, the main reason why your car insurance prices can skyrocket is your car modification. These modifications may have been done for aesthetic purposes but may impact on your car insurance premium. You can compare various auto insurance plans online to help you find the ideal one for your vehicle.
What exactly is car modification?
This can be any minor modification you make to your vehicle’s factory (company) model to make it stand out in a crowd. The changes can be made to make it more efficient, appealing, or functional.
New car insurance or insurance renewal protects you from risks, and when you make changes, the chances of risk increase, and the insurers become incredibly cautious. Taking these factors into account, insurance companies calculate all the probabilities, resulting in an all-time high insurance premium. Installing parking sensors, on the other hand, would lower premium costs because it would reduce the risk of any collisions while reversing the car.
Modifications that can raise your car insurance premiums –
1. Engine and mechanical modification:
Drivers who drive recklessly are more likely to overtake, speed, and engage in other risky behaviours. Adding a turbocharger, supercharger, or nitrous oxide to your car can raise your insurance premium.
2. Wheel alterations:
Changing your car’s wheels can improve its appearance and value. So, if your car wheels are modified, notify your insurance company as soon as possible.
3. Suspension and brakes:
Any vehicle’s control is based on its brakes and modifying such critical parts would necessitate insurance company approval. If you have upgraded your brakes or had your suspension adjusted, your vehicle’s performance on the road can change.
4. Car interior:
Changes to your car’s steering wheel, pedals, seats, or sound system are significant and must be reported to your insurance provider. The quality of the products used, and their wear and tear vary, as does the calculation of your insurance premium. Use an online motor insurance calculator to evaluate the premium rates based on your needs.
Changing the paint on your car may appear to be the most innocuous modification, but it must also be reported to your car insurance provider. Getting special paintwork done, such as complex racing or eye-catching designs, can significantly increase the value of your vehicle.
6. Unusual engine replacement:
Your vehicle’s engine is essential in determining how much car insurance you may have to pay. And a non-standard engine can almost certainly result in a non-standard insurance risk and a corresponding premium increase. The insurer considers your vehicle’s manufacturing year, make, and model when calculating the policy cost.
Before any modifications to your vehicle, make sure you notify your insurer well in advance. This shall allow them to assess the impact on your car and calculate the premium accordingly.
Any modification or change made to your vehicle may jeopardise your policy if the car insurance policy company is not notified in advance. While informing may increase the total cost, if it is not disclosed, it may be considered deceptive and cause problems during the claim process.
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** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
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