Customizing your motorcycle can be an exciting way to improve performance, add personal flair, or enhance safety. However, any modification, whether it’s a new paint job, performance upgrade, or security feature, can influence your insurance policy in unexpected ways. With motorcycles already carrying a higher risk on the road—a fatality rate of 26.16 per 100,000 registered motorcycles in 2020—insurers consider modifications carefully when calculating coverage and premiums. Let’s explore how different types of motorcycle modifications might impact your insurance costs and coverage needs.
Types of Motorcycle Modifications
The following are some types of motorcycle modifications:
- Performance Modifications: These include changing parts of the engine and the exhaust system to boost power and speed.
- Cosmetic Changes: Paint jobs, decals, seats, or any other part that could transform the look of the motorcycle.
- Safety Modifications: Some modifications include installing anti-locking brakes, upgraded lighting, better tires, and the rest.
- Security Additions: Alarms, locks, and GPS trackers that could prevent any theft.
Each of these changes could be employed in a manner that would change your insurance in a different way, so keep the communication with regards to every change with your insurance.
How Modifications Can Influence Your Premium
- Higher Value of the Motorcycle
Any alteration to your motorcycle, especially with pricey parts, usually raises the general value of the motorcycle. The insurance company may quote higher premiums since they will have to pay for a more expensive replacement or repair in case the bike gets stolen or damaged. A custom paint job that cost $1,000 would have to be covered at a higher rate in case it is lost or destroyed.
- Higher Risk of Accidents
Other changes could even make your bike ride faster or stronger. Sounds quite cool, but this has often been a problem for insurance companies: they think that you are now more at risk for accidents. Modifying factors that have performance impacts usually carry higher insurance premiums since it increases risk levels on the road.
- Safety Impact
Some changes done with an eye on safety will cut down the premiums you need to pay. Anti-lock brakes or very advanced lighting make the bike much safer so that the possibility of an accident occurring to you drops. In such cases, you can have insurance companies cutting down premiums for such alterations as part of your insurance policy.
- Changes That Are Not Eligible for Normal Policies
Most ordinary motorcycle insurance policies automatically don’t cover modifications. You, therefore, might end up failing to get some money compensated when you are making claims on those modifications. This will mean that in case a change has been done to the motorcycle, then always tell the insurer. One would further opt to obtain customized covers, that especially protect custom parts.
- Theft Risk
Customizations may be more eye-catching, but this may also increase your chances of theft. Furthermore, insurance companies may demand higher premiums because of this danger. In some cases, adding security features like a GPS tracker or heavy-duty locks may balance this danger.
Informing Your Insurance Provider
Communication with your insurance provider is key. Here’s what you should do:
- Documentation: Take pictures of all the changes, accompanied with receipts and details. You may find these to be helpful when discussing possible coverages with your insurance company.
- Talk to Your Insurance Company about Coverage Options: Request if “custom parts and equipment” coverage is offered. This will help safeguard most or all your changes in the event that they are stolen or totaled in an accident.
- Be transparent: Declare all changes. Undeclared changes will leave you with denied claims and out-of-pocket expenses.
Protect Your Ride with the Right Coverage from SFM Insurance
Modifying the motorcycle provides an excellent way for it to be truly your own ride, but responsibility comes as well. Having knowledge in how changes would affect your insurance policy means that surprise costs will never come back to haunt you, keeping them fully protected.
SFM Insurance is committed to giving you the best possible protection for your hard work and investment. Reach out to us today to get your ride covered with a personalized policy. Upgrading features, performance, or safety, SFM has you covered. We will give you the perfect coverage suited just for your needs.
Dont let all of that hard work and your investment go unprotected. Contact us today to lock in your customized coverage for your ride, bringing you new features, improving performance, or safety features.
