So, if you’re wondering if you’ll need special automobile insurance if you modify or add features to your car, this article will help you.
Car customizations or modifications that are not factory made, or aftermarket parts, will basically be excluded from the standard’s policies. Some insurers look at an automobile as modified/customized when the body, chassis, or frame is structurally modified, the performance is augmented, or if the value of the paint job has exceeded thousands of dollars.
Coverage Needed for Customizations
Although the standard policy may not reimburse your customizations value, if you need to file for a loss claim, luckily there are two options that you can choose from:
- Collectible/Classic Car Insurance
If the provider doesn’t offer this kind of endorsement, or if the coverage limits aren’t enough to protect your investment, you can look for coverage from a carrier that specializes in insuring classic/collectible automobiles. Car’s includes J.C Taylor, Hagerty, Grundy, American National, and Condon Skelly.
- Supplemental Coverage
A lot of insurers offer an endorsement that provides supplemental coverage for aftermarket components and modifications. For example, if someone offers optional customized equipment and parts coverage, it would pay up to $4,000 if the equipment or parts are damaged or need to be replaced.
Depending on your insurer, the premium for this additional coverage can be equals to 10% of the modification value.
Things to Consider Before Modifying Your Car
Are you determined to move ahead and make a minor or major modification on your vehicle? Consider thinking about these suggestions first:
- Read your current policy thoroughly and understand the coverage exceptions and inclusions.
- First, consult with your insurer, and let them if you’re planning on making changes on your car.
- Ask for some clarifications in writing to make sure your modifications are all covered. You can ask and request about the confusing policy language in a document, email, or letter to prevent misunderstanding in the future.
- Don’t try to hide or forget to tell about the modification to your insurer. If the modification added more value to your car, if you got involved in the accident and your car isn’t insured with the right amount, you’ll only be paid for the car’s original price, which was before the modification.
Therefore, if you ever think about modifying your car, make sure to get and consult with an auto insurance provider first to adjust your vehicle’s value.
At Independent Executive Insurance Brokers, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (805) 624-4815 or Click Here to request a free quote.