Car Modification and Its Impact on Insurance |
Posted: January 2, 2019 |
You have bought your brand new car and also got your car insured from one of the best insurance companies in Dubai. Now, you want to make some modifications to your car – maybe revving up your car engine or upgrade your car with swanky new alloy wheels. These modifications will surely make your car look super shiny and up-to-date and even improve its performance but it can have severe effects on your existing car insurance. Whether you want to tune up the engine of your car or want to upgrade your ride with new shiny wheels of allow, car modifications can uplift the look of your car and even improve its performance. However, it can severely affect the car insurance that you have taken from any insurance company in Dubai. Generally, any modifications will not be covered in the insurance policy that you have and will add on to the existing insurance. Many a times, insurance companies in Dubai create a hassle when someone tries to claim the amount after modifying their car. Here are the knows and hows of all such instances. How Are Modifications Responsible for Increasing the Cost of Your Car Insurance? In general, modifications that change the performance level of a vehicle also increase the chances of accidents. Hence, it is quite evident that it will come with a higher premium. For example, a turbocharged engine, boosted brake system, gear box, chassis and suspension system will surely make your car fly but it also comes with a highly added risk. Thus insurance companies in Dubai are very careful about the car insurances that they hand out. On the other end of the spectrum are enhancements that make the care more swanky. They up the aesthetic value and boost its monetary value. Hence, an increased risk of theft. Customised body paint, alloy rims and even an upgraded and superior stereo system in the car will appeal to thieves more. Thus insurance companies in Dubai judge the face value of a car when setting an insurance premium and can change it after careful consideration of any modification. How Do Insurance Companies in Dubai Treat Car Modifications? It is the sole discretion of the insurer or the many insurance companies in Dubai from where the insurance has been taken to deny coverage for the cars which have been modified. They can also choose to keep the existing premium and cover the minor modifications or extend the insurance premium up to any level that they deem fit for covering major modifications. In fact, most car insurance companies in Dubai only accept and cover modifications that have been done through any authorised dealer or showroom of the car manufacturing company and choose to overlook work done by unauthorised third party workshops. The car owner, in this case, will be asked to furnish receipts of any modifications done when they are applying for the car insurance policy at any insurance company in Dubai. In case of major modifications done to the car through an unauthorised third-party workshop, the car owner will only be eligible for a TPL or a Third Party Liability insurance policy. How Can Car Modifications Be Made During the Insurance Term? Firstly, if you want to do any modifications to your car, you must inform the car insurance companies in Dubai from where you have taken the insurance during the current, on-going term of the car insurance policy. The insurer will update your policy terms, benefits and premium based on the modifications that you have done and the terms that you come to agree with the insurer. The insurance company, most likely, will ask you to pay an added sum as premium to cover the expensed car parts. In case you miss informing your insurer well in advance, they have every right to reject your insurance claim in days to come, should the need for so arise. Thus, if you have already planned to modify your car, speak to an agent of the insurance companies in Dubai and check what the consequences of your customizations will be. If it is costing you a lot, rethink on whether the customisation is really worth going for or not. The total expense of your car will increase with each modification and only you can judge if it is worth your money. How Can A Car That Has Already Been Modified Be Insured? To insure a modified car, insurance companies in Dubai will ask for a 'modifications certificate' when you apply for the insurance policy. You may wonder what it actually is and how you can go about getting it. The UAE Cabinet took an official decision (No 45 of 2016) that owners od modified cars will have to get a 'modifications certificate' from the Emirates Authority for Standardization and Metrology (ESMA) by producing relevant documents. Without this, no car owner can get their modified car insured by any insurance company in Dubai. This regulation was put in place to ensure that all the modified vehicles met the standard safety norms of road safety so that they can legally keep driving on UAE roads. A new inspection centre came up in Yas Marina Circuit in Abu Dhabi. This facility was set up for specifically inspecting and monitoring modified cars. The inspection is carried out in a few steps. These are as follows – - A thorough physical examination of the modified car will be carried out by the centre - If they meet all safety norms, the modifications will be accepted. If not, they will be rejected. - The final results derives will be forwarded to ESMA - The ESMA will them issue a modifications certificate to the car owner In case you are purchasing a used car, it is very important to ask the owner from whom you are buying whether the car has been modified and if all the modifications have been covered under the existing insurance. If not, you can face rejection by your insurance company in Dubai in case you need to claim insurance in future. The best thing to do is thus be informed and inform the insurance company in Dubai from where you have taken the insurance if you are modifying your car. If you do, consider all the costs and implications and take a judicious decision for yourself.
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