When you buy a comprehensive bike insurance policy, you pay a premium depending on the Insured Declared Value of the bike. The Insured Declared Value or IDV in short, is the market value of the bike after factoring in the age-based depreciation. Moreover, if there are additional accessories added to the bike, the IDV also includes the value of the accessories after depreciation.
Having the correct IDV in the bike insurance policy is important so that the value of the bike is maintained and you get a higher claim in case of theft or total loss. The IDV affects the premium of the policy too. A higher IDV means a higher premium and a lower IDV would have a lower premium. Since IDV depicts the value of the bike, making modifications on the bike affect the IDV which, in turn, affects the premium of the bike insurance policy. If the modification increases the value of the bike, needless to say, the premium of the policy would also increase. Let’s understand –
Bike modifications and how they affect the premium
Visual or aesthetic modifications
If you are driven by the look of your bike you tend to make your bike look more attractive through customized painting job, graphic stickers, decals, etc. When you make your bike visually appealing, the chances of theft increase. As the chances of theft increase, the possibility of a claim in the two-wheeler insurance policy also increases. To counteract this increased possibility of a claim, the insurance company increases the premium of the policy.
Modifications to increase the performance of the bike
There are speed boosters and other tools and equipment which boost the performance of the bike. Turbo engines, supercharging, change in the exhaust system, etc. are some examples of performance boosting changes. Boosting performance means increasing the speed of the bike. As speed is increased, the probability of accidents also increases. This increase in the chances of accidents again increases the possibility of a claim. Thus, in case of performance boosters which make the bike more risky to use, the premiums of online two wheeler insurance policies would increase.
Accessorizing the bike
Fitting the bike with external accessories is also very popular. Adding a luggage carrier to the side, having flared wings in the front, etc. are popular accessories which are added to bikes. As the value of these additional accessories is not involved in the cost of the bike, it is also not reflected in the IDV of the policy. With the addition of accessories, the IDV of the online two wheeler insurance policy increases which, in turn, increases the premium of the plan.
Installing safety gadgets
If you install safety gadgets in the bike for a safer ride, it is good for your insurance policy as the chances of accidents reduce. As such, the insurance company allows you a premium discount when you buy or renew your two-wheeler insurance plan.
Modifications are done for the disabled
If the bike is meant to be used by a physically handicapped or disabled individual, modifications are done to make the bike suitable for them. Additional wheels are added at the rear for better balance and ease of riding. These modifications attract a premium discount. Insurance companies offer a discount on the premium if the bike is modified for use by the disabled.
Conclusion
So, this is how modification affects your bike insurance premium. When the bike is modified, the insurance company should be informed so that the modification is recorded in the policy document. If the modification is not recorded by the insurance company, in case of a claim, the claim might get rejected or the company might pay the claim partially. So, informing the insurer about the modification is necessary. Moreover, if you are wondering about the effect on the premium due to modification, you can use two wheeler insurance premium calculators to calculate the premium of the policy. The two-wheeler insurance premium calculator helps to calculate the premium and also shows you the effect of the modification on the premium. So, understand how modifications affect your bike insurance policy as well as its premium.