We have already looked into the topic of Two-wheeler modifications and its reigning rules for the context of Nepal in our recent article “Bike Modification | Act 2049 B.S.” Article. The discussed variables in the article were pretty confusing as there were no actual set and specified rules that agreed to abolishing two-wheeler modifications and rules that supported certain nextenet of modifications. In today's article we will look into what are the possible effects of modifying one’s bike in-terms of insurance policies and resale value.
1. Insurance policy and premiums
- Any vehicle has to be insured inorder to keep the rider as well as the vehicle safe and looked after in the case of any unfortunate event. Insurance policies and premium rates cover certain limits of changes to the two-wheeler, but major modifications could intervene and differ the originally drafted insurance policies for that two-wheeler. In the case of any security modifications such as anti-theft appliances and sirens could be a reason to allot some discounts on the insurance premium, provided those modifications are sincerely informed to the insurer. In contrast, if there are major aesthetic or even performance enhancement modifications done to the two-wheeler, the insurance premium rates could potentially increase with the cosmetic changes done to the looks and performance of the two-wheeler.
2. Resale Value
- Changing the original look, design and performance ability of a two-wheeler will definitely be an added cost to the user. Incase of a situation where the two-wheeler has to be resold to a second hand user, the cost of the modifications could go even higher. Resale values will not remain as constant to the original unchanged variants of the same two-wheeler whereas the modified model may face the issues. Modifications are done to customize one’s bike to their liking, and every one has a different preference and taste. So, reselling could be a difficult situation in the future.