Summary of this article
Customisation and coverage are not opposites. With the right disclosure, your car can be as unique as you want it to be, while your insurance remains as reliable as you need it to be.
A Delhi-based businessman proudly installed a sunroof and high-end speakers in his car. For him, it was about comfort and style. But when an accident occurred, he was surprised to learn his insurance did not fully respond. The insurer explained that any change to a car’s structure or value must be endorsed in the policy.
This is the reality many car owners discover too late. A single undeclared change can be a cosmetic tweak or a performance enhancement; however, it can give insurers the legal grounds to limit or deny payouts.
Why Modifications Raise Red Flags
Car insurance works on utmost good faith, meaning both parties must be transparent. The moment you alter a vehicle’s structure, value, or performance, its risk profile changes. That change must be reflected in the policy through endorsements. Yet many owners overlook this step, assuming minor tweaks don’t matter.
“Vehicle insurance is not frozen in time,” says Sanjiv Bajaj, Joint Chairman & MD, Bajaj Capital. “The moment you add or alter, the contract must evolve with the vehicle. If that change is left undeclared, however small, the policy is no longer protecting the car you own today; it is protecting the car you once bought. And that mismatch is exactly where claims collapse.”
What Counts As A Modification?
The list is longer than many expect:
Cosmetic: wraps, spoilers, alloy wheels, custom paint jobs
Functional: sunroofs, infotainment upgrades, bull bars
Fuel-related: LPG or CNG kits (require RTO approval plus insurer endorsement)
Performance: engine remapping, suspension changes, turbochargers
Even safety upgrades like sensors or braking systems need to be disclosed, since they alter how insurers calculate risk.
The High Cost of Non-Disclosure
The financial consequences can be severe. Owners who spend a few thousand on add-ons may end up losing lakhs in claims. In some cases, policies can even become void if critical modifications are hidden.
“People see modifications as an expense, but insurers see them as a signal of changed risk,” Bajaj explains. “The more transparent you are about those changes, the stronger your claim stands when you need it most. The real cost is not in disclosure or endorsement, it is in silence.”
How To Customise Without Losing Cover
The good news? Personalisation and protection can go hand in hand. The key lies in being upfront:
Inform your insurer before making changes.
Get all modifications endorsed in the policy.
Secure RTO approvals for fuel-related or structural alterations.
Accept a small premium increase—it is always cheaper than a rejected claim.
Your car can carry your style, but it should also carry your safety net. Declaring every change and securing proper endorsements ensures you enjoy both: the individuality of your vehicle and the certainty of protection. Customisation and coverage are not opposites. With the right disclosure, your car can be as unique as you want it to be, while your insurance remains as reliable as you need it to be.
