Does replacing the engine affect third-party insurance?
2 Answers
Replacing the engine has an impact on insurance claims and vehicle transfer. The owner of the motor vehicle must apply for a modification registration with the local vehicle management office. Introduction to Third-Party Liability Insurance: Motor vehicle third-party liability insurance, referred to as third-party liability insurance, covers the financial liability that the insured or their permitted driver must bear by law when an accident occurs during the use of the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party. The insurance company is responsible for compensation. Definition of Third-Party Liability Insurance: In the past, most local governments classified third-party liability insurance as compulsory insurance. Without this insurance, motor vehicles could not be licensed or undergo annual inspections. After the introduction of Compulsory Traffic Accident Liability Insurance (commonly known as compulsory insurance), third-party liability insurance became non-compulsory. Since compulsory insurance provides relatively low compensation for third-party property losses and medical expenses, purchasing third-party liability insurance can be considered as a supplement to compulsory insurance.
From my over 20 years of driving experience, changing the engine does indeed affect third-party insurance. When insurance companies assess risk, they look at the vehicle's original condition. If the engine is replaced, especially with one that increases horsepower or alters the structure, the risk of accidents goes up, and the insurance premium might increase. Failing to notify them promptly could lead to claim denial in case of an accident. For example, my friend replaced his engine without reporting it, and when he rear-ended someone and caused injuries, the insurance refused to pay, leaving him to cover the costs out of pocket. Therefore, I recommend contacting your insurance company immediately after an engine swap to update your information and inquire about any additional clauses you might need for protection. Don’t cut corners to save hassle. Developing this habit can save you both peace of mind and money.
