Examples of this would include motorcycles like the BMW S1000RR, Kawasaki Ninja H2, or Yamaha YZF-R1M, which are designed and manufactured with high-performance engines, brakes, and other components that are meant to push the limits of what a motorcycle can do. On the other hand, aftermarket performance enhancements are modifications made to a motorcycle after it has been manufactured and sold. These can range from simple upgrades like changing the exhaust system or air filter, to more complex modifications like adding a turbocharger or nitrous oxide injection system. The reason why these two types of performance enhancements are treated differently by insurance companies is because manufactured performance enhancements are thoroughly tested and validated by the manufacturer to ensure they meet safety standards and will not cause damage to the motorcycle or the rider. Aftermarket modifications, however, may not have gone through the same testing process and therefore could potentially be unsafe or cause damage to the motorcycle. In terms of the impact on insurance rates and excesses, manufactured performance enhancements typically do not have a significant impact on premiums or excesses, as they are considered part of the standard features of the motorcycle. On the other hand, insurance companies may charge higher premiums and excesses for motorcycles with aftermarket performance enhancements due to the increased risk associated with these modifications. When it comes to incidents that lead to claims, motorcycles with aftermarket performance enhancements are often involved in accidents due to the higher speeds and increased power of the motorcycle. For example, a rider may lose control of the motorcycle due to excessive speed, or the brakes may not be able to handle the increased power of the engine. Additionally, aftermarket modifications may not be covered by the original manufacturer's warranty, which can lead to additional repair costs in the event of an accident. As a short-term insurance underwriter/insurer, it's important to assess the risks associated with aftermarket performance enhancements when calculating premiums and excesses. By asking about these modifications upfront, we can better understand the risks associated with insuring the motorcycle and provide a more accurate quote to the client. Here is a table outlining the type of aftermarket modifications that may be considered high-risk for a motorcycle and those that are not:
| High-Risk Aftermarket Modifications | Low-Risk Aftermarket Modifications |
| Supercharging or turbocharging | Aftermarket exhaust systems |
| Nitrous oxide systems | Aftermarket handlebars |
| Engine modifications (boring, stroking, etc.) | LED lighting kits |
| Suspension modifications (lowering, stiffening, etc.) | Aftermarket seats and upholstery |
| Racing or track-specific modifications | Windshields and fairings |
| Custom paint or graphics | Saddlebags and luggage racks |
It's important to note that the impact of aftermarket modifications on a motorcycle's insurance policy will depend on the insurer's underwriting guidelines and the individual circumstances of the policyholder. For example, a highly modified bike with a history of racing accidents may be considered higher risk and result in a higher premium or excess. On the other hand, a bike with a few minor modifications may not have a significant impact on the policy. As always, bikers need to disclose any modifications to their insurer to ensure they have the appropriate coverage in the event of a claim.
| High-Risk Aftermarket Modifications | Explanation |
| Nitrous Oxide Kits | Nitrous oxide systems inject an extra burst of oxygen into the engine, which creates a sudden and significant increase in horsepower. However, these systems can cause serious damage to the engine, and the increase in speed and power can increase the risk of accidents. This makes them high-risk modifications and can lead to higher premiums and excesses. |
| Non-Approved Braking Systems | Modifying the braking system can increase the stopping power of a motorcycle, but non-approved systems may not meet safety standards or could lead to mechanical failures. These modifications can increase the risk of accidents, making them high-risk and leading to higher premiums and excesses. |
| Engine Modifications | Altering the engine, such as installing oversized pistons, turbochargers, or superchargers, can increase horsepower but may also increase the risk of engine damage, overheating, or even explosions. These modifications are seen as high-risk, leading to higher premiums and excesses. |
| Non-Approved Suspension Systems | Modifying the suspension system can improve handling and stability, but non-approved systems may not meet safety standards or could lead to mechanical failures. These modifications can increase the risk of accidents, making them high-risk and leading to higher premiums and excesses. |
| Non-Approved Lighting Systems | Modifying the lighting system can improve visibility or create a unique look, but non-approved systems may not meet safety standards or could cause confusion or distraction to other drivers. These modifications can increase the risk of accidents, making them high-risk and leading to higher premiums and excesses. |
| Custom Paint Jobs | While a custom paint job can give a bike a unique and personalized look, they do not affect the performance or safety of the bike. However, they can increase the value of the bike, and some insurers may require additional coverage for them. |
| Custom Seats and Handlebars | While custom seats and handlebars can make a bike more comfortable for the rider, they do not affect the performance or safety of the bike. However, they can increase the value of the bike, and some insurers may require additional coverage for them. |
Bikers need to keep in mind that modifications can have an impact on their insurance coverage. High-risk aftermarket modifications that significantly alter the performance, handling, or safety of a motorcycle can increase the risk of accidents and damage, which can lead to higher premiums and excesses. It's always a good idea to check with your insurer before making any modifications to your bike to ensure that you have the appropriate coverage and are aware of any potential impact on your policy.