How Car Modifications Modify your Car Insurance in the UAE?

How Car Modifications Modify your Car Insurance in the UAE?PolicybazaarAverage Rating / 5 ( reviews)
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Whether you want to add new shiny wheels to your car or want to tune up its engine, modifications on your vehicle can elevate its look and improve its performance also.

However, modifications on a car also have a big downside, it’ll add up to your car insurance cost. Moreover, in many cases, it can also lead to the rejection of your insurance claim.

To help you understand more in this regard, we have listed a few questions and their answers in this article. 

How are car modifications treated by insurance providers?

The insurance providers, depending on their sole discretion, might choose to reject coverage for modified vehicles, extend cover to only minor modifications, or charge a considerably higher premium to cover the main modifications.

Most insurers in the UAE, in fact, cover only those modifications that have been made from a showroom or an authorized dealer. They might reject the coverage for the cars modified from third-party workshops. The owner of the car may be asked to submit receipts for the modifications done while buying a car insurance plan.

If you got the major modifications done from an external workshop, you might only be offered a third-party insurance plan. 

Why does your car insurance cost rise due to modifications?

The modifications, which impact the performance on a car generally increases the accident risk and hence, may lead to a higher premium. For example, a modified turbocharged engine, and modifications in brakes, gearbox, chassis, and suspension system.

Alternatively, the changes that improve the car aesthetics and boost the value add up to the theft risk. The changes such as allow rims, updated stereo systems, custom paint, make the car more appealing, leading to an increase in the insurance premium. 

How to get car insurance for a car that has been modified already?

If you want to insure a modified car, then the insurance provider will ask you to submit a certificate of modification while applying for the car insurance policy. Before you apply for the insurance, you should car insurance UAE compare, and select the most suitable option. 

What does a certificate of modifications mean, and how to apply for it?

As per an official decision by the UAE Cabinet (No. 45 in 2016), all the modified cars’ owners now require a “modifications certificate” through the ESMA or Emirates Authority for Standardization and Metrology.

The aim of this regulation is ensuring that all the modified vehicles fulfill the safety standards of roadworthiness, for driving legally on the roads of the UAE. Before this initiative, there wasn’t any method for owners of the cars to verify the safety of the customization and modifications done to their car.

The center for purpose of inspection of modified vehicles is located in Yas Marina Circuit, Abu Dhabi. Here is the process of inspection-

  1. The vehicle will be physically inspected thoroughly at the center.
  2. The modifications done will be certified (or rejected if they do not fulfill the safety standards approved).
  3. Then the center will send the results to ESMA.
  4. The ESMA will issue a certificate of modifications to the owner of the car.

If you are planning to buy a used car, which has been modified, ask the seller to give you the certificate of modifications. By doing this, you can make sure you do not get stuck with a vehicle, which does not meet the safety regulatory standards.

How to get car modifications done during the term of the insurance?

You should inform the insurance provider about any modifications done to the car during an active insurance policy term. The insurance provider will update the current plan according to the modifications. It might also charge you with an additional premium for the amount of coverage that is extended to the changed parts.

If you do not inform your insurance provider beforehand, your insurance claim might get rejected in the future.

If you plan to customize or modify your car, the best thing to do is check with your insurance provider if it will provide coverage for the modifications done. You should also check the extra amount that you will have to spend on your auto insurance premium so that you can include that while calculating the total expense of car modification. 

Car modifications have an impact on your motor insurance. Therefore, while you modify your car, make sure you are prepared for the things discussed above. Doing so will help you in buying or maintaining a suitable car insurance policy.

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