Here's the straight talk: modifying your bike will likely impact your insurance premiums, but it's not always bad news. Performance-enhancing modifications lead to higher premiums, as they can increase the risk of accidents or damage. On the other hand, aesthetic modifications may have a lesser impact on premiums, as they are less likely to affect the bike's safety or performance. The key? Always declare modifications upfront to avoid voided coverage. Failing to disclose alterations to your insurer could lead to potential coverage gaps in the event of a claim. Whether you're adding a slip-on exhaust or going full custom, understanding how each change affects your premium helps you make smart decisions that won't break the bank.
Performance mods typically increase your premium because they boost accident risk and repair costs.
When you upgrade your bike's engine, exhaust, or suspension, you're essentially telling your insurer that you've got more power under you – and that means more risk. Performance-enhancing modifications lead to higher premiums, as they can increase the risk of accidents or damage.
Here's what insurers worry about with performance mods:
Engine Modifications: Whether it's a big bore kit, turbo, or ECU flash, anything that adds horsepower puts you in a higher risk category. Engine upgrades: Reboring the cylinder is common on custom motorcycles and achieves a significant increase in engine power. More power means higher speeds, and statistically, that translates to costlier claims.
Exhaust System Changes: That aftermarket pipe isn't just about sound – it often comes with performance gains. Providing that they comply with regulatory standards, aftermarket exhausts and end cans are performance modifications that will generally be accepted by insurance companies. However, any increase in performance can also increase the value of your bike, which furthers the risk.
Suspension Upgrades: While better suspension can improve safety, insurers often lump it into the performance category. Modifying the suspension in any way changes the performance of the bike.
The bottom line? Budget for a premium increase when adding performance mods, but remember – the enhanced riding experience might be worth every penny.
Accessories add value; modifications change how your bike performs – and insurers treat them very differently.
This distinction matters more than you might think. An accessory is generally part of your motorcycle which is not directly related to how it works as a motorcycle... A modification is therefore changes to your machine that change the performance and / or handling of your motorbike.
Accessories (usually lower impact on premiums):
Modifications (typically affect premiums more):
Approved manufacturer accessories aren't typically considered modifications, so they shouldn't affect your insurance. In fact, some accessories like a chain guard or bar ends that protect your bike, could help lower the cost of your premium.
When in doubt, ask yourself: does this change how my bike rides or looks dramatically different from stock? If yes, it's likely a modification that needs declaring.
Custom paint and bodywork can increase premiums due to higher replacement costs and theft appeal.
Even purely cosmetic changes can hit your wallet when it comes to insurance. Paint jobs: Getting a paint job for your bike might not seem like a modification of its power or handling, but your insurance company is likely to see new paint as a modification anyway.
Why Aesthetic Mods Impact Premiums:
Increased Replacement Value: That custom candy apple red with pearl flake? Beautiful, but expensive to replicate. Custom paint work can be costly to replace, and higher replacement costs mean higher premiums.
Theft Attraction: Custom bikes stand out – sometimes in ways you don't want. Modified bikes tend to be more attractive to thieves, increasing the chances of your bike being stolen and you making a claim on your insurance. According to the National Insurance Crime Bureau, motorcycle theft remains a significant concern for insurers.
Resale Complications: Modifications can complicate valuation. Modified bikes can be more difficult to sell than standard motorcycles, affecting how insurers calculate value.
Common Aesthetic Modifications That Affect Premiums:
Pro tip: Keep documentation and photos of all custom work – it'll help during claims and prove your bike's value.
Anti-theft devices and safety features often reduce premiums by demonstrating lower risk to insurers.
Finally, some good news! Not all modifications will cost you more. Certain modifications, like adding advanced safety features such as anti-lock braking systems (ABS) or traction control, may reduce premiums. These enhancements demonstrate a commitment to safety, which insurers view favorably.
Security Modifications That Can Save Money:
Alarm Systems: These are arguably some of the best adjustments you can make to your bike, and on some occasions may be able to save you money on your insurance policy. Recognised security systems that meet industry standards are typically valued by insurers.
Immobilizers: Kill switches and immobilizers make your bike much harder to steal.
GPS Tracking: Recovery systems that help police find stolen bikes are increasingly valued by insurers.
Secure Storage Modifications: With insurer-approved motorbike security features fitted, it's possible you could enjoy significant savings on your premium.
Safety Enhancements That May Reduce Premiums:
With motorcycle accidents being a significant concern, it's no wonder why insurance companies love safety features. The safer your bike is, the less likely you are to file an insurance claim — or the less expensive your claim is likely to be.
Not declaring modifications can void your policy and leave you completely unprotected.
This is where many riders shoot themselves in the foot. Inform us of your modifications so we can ensure that your bike is properly covered, if you don't disclose your modifications, then it could invalidate any potential claim and make your insurance void due to non-disclosure of modifications.
The Risks of Non-Disclosure:
Voided Claims: Your insurer can refuse to pay out if they discover undeclared modifications during a claim investigation. Failing to disclose modifications can lead to denied claims or reduced payouts.
Policy Cancellation: Insurers can cancel your policy entirely for non-disclosure, leaving you riding illegally.
Future Coverage Problems: Being dropped for non-disclosure makes it harder and more expensive to get coverage elsewhere.
Real-World Scenario: Imagine crashing your bike with an undeclared performance exhaust. In a worst case scenario, imagine you're involved in a crash after adding aftermarket exhausts to your motorbike. If your new cans improve the performance of [your bike] and you haven't declared them, your insurer could refuse to pay out.
How to Properly Declare Modifications:
Transparency is crucial when it comes to modifications and insurance. It's always better to pay a higher premium than to risk having no coverage at all.
Premium increases vary widely based on modification type and extent, but expect higher costs for performance-enhanced bikes.
The impact on your wallet depends on several factors. Generally speaking, if those modifications increase the value, performance or desirability of your bike, you can expect to pay more compared to an unmodified bike. This is because all of these elements could increase the risk of your motorcycle being stolen or involved in an accident.
Factors That Determine Premium Increases:
Type of Modifications: Performance mods hit hardest, while safety features might actually save money.
Number of Modifications: There is also a school of thought that says that insurers will accept three or less modifications to your motorbike before your premium requires updating. However, this varies significantly by insurer.
Total Value: Most insurance companies are reluctant to insure bikes that would be so costly to replace. If they agree to insure a motorcycle with lots of custom work, the premium will be considerably higher.
Factors That Determine Premium Increases:
Ways to Offset Higher Premiums:
While modifications may impact your premiums, there are ways to offset potential increases. Maintaining a clean driving record, completing a motorcycle safety course, and storing your bike securely can all contribute to lower insurance costs.
Yes – illegal modifications and unsafe alterations will make you uninsurable.
Some modifications cross the line from "expensive to insure" to "impossible to insure." Not only do the following modifications mean insurance providers won't touch you, but they're also illegal.
Modifications That Void Coverage:
Illegal Lighting Changes: Replacing OEM headlights with multiple headlamps – it's illegal for a motorbike to have more than two headlamps as the over-the-top glare could distract other motorists. Coloured headlights – changing the colours could affect visibility or give the wrong information to others on the road.
Safety Equipment Removal: Removing the reflectors – they may make your bike 'less sexy', but reflectors are there for your safety and to help improve your visibility at night. Removing the side mirrors – some motorcyclists get rid of the side mirrors to make the bike look sportier and reduce drag. Without side mirrors you won't be able to view blind spots on the road – removing them is highly dangerous and illegal.
Engine Swaps Without Documentation: Swapping out a motorbike engine is often easier than doing so in a car, but it can unintentionally create significant insurance complications. Major engine swaps that change displacement categories can void coverage.
Unsafe Structural Changes: Any modification that affects the bike's stability or safety systems.
Before You Modify, Consider:
Before making any modifications, it's essential to consider your riding habits and needs. Ask yourself whether the changes will genuinely enhance your riding experience or are purely cosmetic. Remember, safety should always be a top priority.
Bio Box: Mike Rodriguez is a motorcycle insurance specialist with 15 years of experience helping riders across the country. As a certified motorcycle safety instructor and former bike builder, he's seen firsthand how modifications impact both performance and insurance costs. Mike rides a modified Yamaha R1 and understands the passion for personalizing your ride while staying properly insured.
Key Takeaways for Smart Riders:
Plan Before You Build: The best time to discuss modifications with your insurer is before you make them, not after. This prevents surprises and ensures you understand the cost implications upfront.
Document Everything: Keep detailed records of all modifications, including receipts, installation photos, and professional certifications. This documentation proves value and legitimacy during claims.
Balance Performance and Practicality: While that turbo kit might add serious power, consider whether the premium increase is worth it for your riding style. Sometimes less is more.
Consider Bundling: If you're building a seriously modified bike, look into specialist insurers who understand custom motorcycles rather than trying to force coverage through standard providers.
Safety First, Always: Every modification should maintain or improve your bike's safety. Never compromise safety for looks or performance.
Don't let modification worries keep you from building the bike of your dreams. At Roamly, we understand that your motorcycle is more than transportation – it's an extension of who you are. Whether you're planning your first exhaust upgrade or building a full custom machine, we'll help you find coverage that protects your investment without breaking the bank.
Our motorcycle insurance specialists work with riders who live to customize, modify, and perfect their bikes. We know which insurers appreciate quality modifications and which ones run scared. Get a quote that actually covers what you ride, not just what you started with.
Get rolling with proper coverage. Compare motorcycle insurance quotes designed for riders who aren't afraid to turn wrenches and chase perfection. Your custom bike deserves custom coverage.
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This article provides general information about motorcycle modifications and insurance. Coverage terms vary by provider and policy. Always consult with your insurance representative about specific modifications and their impact on your coverage.
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