How Motorcycle Modifications Can Impact Your Insurance Rates

Motorcycle modifications can be a popular way for riders to personalize their bikes, improve performance or enhance comfort. However, these changes can also significantly impact your motorcycle insurance rates. Understanding how and why this happens can help you make informed decisions about modifying your bike while ensuring you remain adequately insured.

The Impact of Modifications on Insurance Rates

Insurance companies generally calculate premiums based on risk levels. As such, the more likely an incident is to occur, and the more significant losses may be, the higher the premium. When you modify your motorcycle, you alter the risk profile of the bike in the eyes of the insurer. Consider the following potential effects of modifications:

• Increased theft risk—Custom parts and modifications can make your motorcycle more attractive to thieves. High-end modifications like custom paint jobs, chrome parts or expensive audio systems can make your bike a more tempting target for criminals. This increased risk can lead to higher insurance premiums.

• Higher repair costs—Modified motorcycles may often require specialized parts and services for repair, which can be more expensive than standard parts. If your bike is damaged in an accident, the cost to replace or repair custom parts will generally be higher, leading to increased insurance rates.

• Performance enhancements—Modifications that increase the speed or performance of your motorcycle can also raise your insurance rates. Faster bikes are often seen as a higher risk because they can lead to more severe accidents. As such, if you add a turbocharger or modify the engine for increased power, your insurer may increase your premiums.

• Greater value—Modifying your motorcycle can add significant value to it, potentially meaning that you may require higher coverage limits within your policy. As a general rule, greater coverage limits incur more expensive premiums.

Mitigating the Impact of Modifications on Insurance Rates

While modifications can increase your insurance rates, there may be ways to mitigate these  potential costs:

• Inform your insurer. Always inform your insurer about any modifications to your motorcycle. While this may increase your premium, failing to disclose modifications can lead to denied claims in the event of an accident.

• Select modifications wisely. Some modifications, like those that improve safety (e.g., anti-lock brakes or improved lighting), may not increase your premiums and could potentially lower them.

• Shop around. Different insurance carriers may approach modified motorcycles differently. A qualified independent insurance agency, such as Contigo Insurance, can help you peruse the offerings of multiple providers.

We’re Here to Help

Modifications can help make your motorcycle feel particularly flashy, powerful and personalized. However, enhancing your ride also requires insurers to account for increased risks and exposures, often leading to higher rates. Fortunately, the dedicated team at Contigo Insurance is here to help you secure or maintain adequate coverage while finding the best available rates. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.