Does adjusting the height of your car void your insurance policy? The car’s overall value decreases if you have done any modification. It’s because of the unauthorized parts that are used during the modification process you have to pay an additional premium if you want to keep the original car value the same.
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Car modification effect on insurance
Modifying your vehicle is the new trend. People like to change their cars and bikes. The modification process affects your car insurance. Many people do not become aware of this fact. But car modifications indeed affect the insurance value. The insurance company mostly lowers the car’s final value after any modification. If you increase the car height then the insurance company automatically decides the compensation amount.
Here is everything about adjusting your car height void insurance. To know more about it in detail make sure you stick till the very end.
What is vehicle modification?
Vehicle modification is defined as the custom changes in a car that are done by the owner. This modification changes the look of the car. Some examples of car modification are as follows;
1) Replacing the wheel with the alloy wheels rim.
2) Increase the car by height.
3) Make a sunroof on the car
4) Modify the car storage system
5) Tattooed the car
6) Modification in the car exhaust system
All these changes affect the car insurance rate. Hence they financially impact the car. It may look cool but the insurance company took advantage of this modification to lower the car’s value. It does not matter how much you have to spend on the modification. If it does not look like the original model of the car its value decreases automatically.
Which modification decreases the issuance value?
Is it a violation of your insurance policy to adjust the height of your car? Almost all types of modification affect the value. But some modifications leave a big impact. Instead of increasing the overall value, it decreases the value. Some of these modifications are as follows.
1) Structural changes in the car body.
2) There is a custom-painted car with tattoos all over it
3) Modifying the car’s components will improve the car’s performance and will increase its efficiency.
Notably, If you’re doing all these changes once then you have to inform the appropriate insurance company. And you have to pay the additional premium for the car insurance. Because after modifying you will increase risks of accidents and damage. Hence you have to pay the additional premium of the insurance policy. Please note that when you fail to inform the insurance company at the time of the insurance claim then the overall value of the car will decrease. And the decrease impacts the car value a lot.
Why do car adjustments affect insurance?
Everyone is aware that car value will be affected by the modification. When adjusting your car height then its value will decrease. It is because the mechanical use of those parts in the car is not approved by the car company. Hence all these parts are not brand. So using the local modification parts affects the car value. This is the only reason why the car value decreased after the modification.
If you’re doing modifications by the company. And the car company is using brand parts here in the modification that will not affect the insurance value. Remember the insurance value will not increase if you will use the branded car parts.
Affect on an insurance policy after car modification
Car modification does not affect the distance policy. It is not like the terms and conditions of the insurance policy will change after the car modification. It only affects the car value. If you have done car modification from a local mechanic then the car’s overall value from the insurance company side will decrease.
If you pay the additional premium then the value will remain the same. But most people avoid paying the premium because it is almost equal to the overall insurance premiums. If you will do the car modification from the same car brand then the insurance policy value for the car will remain the same and you do not have to pay the premium. But modification from the company itself is very expensive hence not everyone can afford that too.
Documents required after car modification
Certain documents are required after the car modification. If you want to claim insurance then you have to submit all these documents. A list of some of the documents is as follows:
1) A request letter from the policyholder side.
2) Invoice the modification
3) Car ownership documents
4) Vehicle inspection report
5) Policy physical documents that are received after the purchase of the policy
Make sure that you prepare all these documents before filing the insurance claim. If you will give these documents along with the claim application your claim will be rejected automatically. So to protect your claim you have to arrange these documents. You can ask your insurance broker if any additional documentation is required. Because different states have different criteria. So there may be a slight change in the document lists.
Things to remember while doing the car modification
If you’re doing your car modification then make sure that you keep the following things in mind. Make sure that all the parts that are installed in your car are brand new. Do not let the mechanic install old and used parts. So, try to be present at the time of modification. Try not to go to any local mechanical center. If you’re going to a local mechanical shop then make sure that he has done the modification work before. Otherwise, there is a high chance that they will destroy your car.
Conclusion- Does Adjusting the height of your car void your insurance policy?
In conclusion, car modification is a matter of choice. Some people lie about car modifications while some do not like it. If you’re doing car modification then there is a high chance that the car’s overall value in the insurance terms decreases. So, when adjusting your car height and other modifications, think twice about void insurance and other things. If you are using the brand parts then the value will remain the same. But for food that you have to do the proper document work. To depict that all the car-modified parts are verified by the car company.
Here is everything that you need to know about car modification and its effect on the insurance policy. Hope you will find this helpful.