The UAE has strict rules and regulations regarding car modifications. Most modifications, even car colour changes, require a permit. Some modifications are prohibited by law and may lead to penalties. Moreover, modifications may also have an impact on your car’s insurance.
Depending on the type of modification, insurance providers may or may not increase the auto insurance cost of the vehicle. In this guide, we will shed light on basic modifications and their impact on auto insurance in the UAE.
Car Modifications and Their Types
Car modification means company-fitted auto parts are replaced with aftermarket ones. Generally, the purpose of a modification is to increase the overall aesthetics, performance or efficiency of a vehicle.
There are three main types of modifications:
Aesthetic Modification
Aesthetic modification refers to changes that will change the vehicle’s appearance. It can be car paint, window tinting, vinyl or carbon fibre coating or adding a sunroof.
Performance Enhancement Modification
Performance modification refers to any modification that increases the performance of the car. This includes engine modification, brake alterations, adding a new suspension system or installing aftermarket intakes.
Safety Enhancement Modification
These modifications ensure maximum safety of driver and passenger. Things like rear-view cameras, car trackers, anti-theft devices, and off-road bumpers are included in safety modifications.
Effects of Car Modifications on Auto Insurance
Car modification effects on car insurance can be both positive and negative, depending on the type of modification you opt for. For instance, safety enhancement modifications make cars more secure, reducing the chances of claims and premium costs. However, performance enhancement modifications include valuable car parts, which increase the chances of claims, resulting in higher premium costs.
To cater to this issue, insurers offer modified car insurance policies. This insurance plan is specially designed for modified cars that cover all the aftermarket parts installed.
Here are the complete details of the modified car insurance policy in the UAE.
Modified Car Insurance in the UAE
The modified car insurance plan in the UAE aids owners to get coverage of their valuable aftermarket parts by paying a certain premium. The modified car insurance premium is generally higher than regular vehicle insurance. However, certain conditions apply, which may vary from insurer to insurer:
- The car must have been modified by the official car dealers in Dubai and other Emirates. Car modifications and alterations by a third-party repair shop may not be acceptable to the insurer.
- The modifications must adhere to the rules and regulations of car modification in the UAE.
- Every modified car owner must have a modification certificate issued by Emirates Authority for Standardization and Metrology (ESMA).
Modified Car Insurance Cost
Insurance companies generally charge a higher premium for modified cars contrary to other types of insurance. This is because aftermarket parts that increase performance also increase the risk of accidents. Moreover, some aftermarket parts have higher value and are more prone to theft. The cost increases with risk, but the amount depends on several factors such as the cost of the modification and the degree of risk it carries.
FAQs
What is the car modification’s impact on insurance premiums?
The car modification can either increase or decrease the insurance premium. Generally, safety modifications reduce insurance costs, while performance modifications may increase them.
Is car modification legal in the UAE?
Yes, car modification is legal in the UAE. However, the government has provided detailed guidelines regarding the permissible aftermarket modifications, and car owners should adhere to them.
Is it necessary to tell my insurer before modifying my car?
Yes, it is necessary to inform your insurer prior to any major modification in the car. The regular insurance policy may not cover the modification, and insurers might increase the premium to cover aftermarket parts installed after modification.
This was all about car modifications and their effect on car insurance in the UAE. Car insurance is necessary to secure you from financial dents in case of an accident. Whether you have purchased a new or used car for sale in the UAE, insurance coverage is a must.
If you are also planning to get your car modified or purchase a modified one, here is our detailed guide on car insurance in Dubai that will elaborate on different aspects of getting your newly purchased car insured.
Stay tuned to dubizzle’s auto blog for more details regarding car modifications and insurance costs.
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