For some, cars are the means of ends. A quote tool for commuting and working. But for some owners, cars are a canvas, hobbies and an opportunity to dream big. Modified cars can be a source of rich fun, but they can pose some challenges when it comes to insurance. Finding the right policy for a revised car starts with understanding how standard car insurance is short for a modified car.
Will the insurance company cover the modified cars?
Not all insurance companies are the same. Neither is a change to all cars. While most CAR mods can be covered by insurance, finding an insurance company that is willing to cover the modifications may require some research and patience.
Currently, if your car is insured through a standard car insurance provider, the modifications may not override the policy, but you will see that the value of the mod is not covered when filing a claim. To avoid this, we recommend keeping thorough documentation of all changes to your vehicle and asking your insurance company about approval of custom parts and equipment (CPE).
However, for some modified cars, an agreed value policy from an insurer specializing in custom car coverage may be more appropriate. If your vehicle has extensive changes that affect its value and performance, working with a specialized insurance company may be the best way to ensure you have the coverage you need.
Should I talk to my insurance company about car changes?
In general, it is a good idea to let your insurance company know about the car change, especially if you want to make sure your insurance policy covers changes.
If you are asked if there is a change in your car during the application process, be honest. Failure to disclose the existence of modifications when asked can constitute a form of material misrepresentation, or insurance fraud.
If you are not asked directly, you may not need to disclose the presence of a vehicle change, but please note that insurance policies are in mind unless you notify the insurance company of the work you have done with the vehicle. If you need to charge, the cost of repairing or replacing non-original parts may not be covered by the policy.
How to manage insurance for a car with modifications: Insights from real drivers
To gain insight into how the actual owner of a car with modification handles the challenge of ensuring the car, we looked at the Reddit thread discussing this topic.
How much is the corrected car insurance?
Unless you’re looking for an agreed value insurance, car insurance for a car with modifications may not be significantly more expensive than the average insurance. Custom parts and equipment (CPE) approvals add to the overall cost of car insurance, but typically cost less than agreed value policies.
The main factors affecting the cost of car insurance for modified cars include:
- Scope and type of change: Minor cosmetic mods may not require specialized coverage, but major changes that affect performance can require additional insurance solutions and increase coverage costs.
- Select the policy type: An agreed value policy is usually more expensive than a standard policy that involves approval of custom parts.
- Insurance companies you work with: As all insurers calculate the cost of coverage differently, always compare quotes from multiple airlines when purchasing modified car insurance.
- Standard evaluation factors: Regardless of the type of insurance policy you purchase, risk factors can affect what you pay for coverage, from age and driving records to location, credit ratings and insurance history. In some states, you should check with your agent to find out what you are allowed to live in, as they limit or limit these factors.
Can I receive a discount on car changes?
Some insurers offer auto insurance discounts on certain vehicle equipment, such as safety and security systems, but these discounts usually apply only if the system is installed at the factory. Adding changes from the remote start system to the dash cam makes it unlikely to earn insurance discounts.
After creating an update on your vehicle, you may want to look for ways to save money on your car insurance. Taking advantage of discounts and reducing the risks that can be insured as a driver can help you find cheap coverage. Some other discounts you might want to look for are:
- Telematics Discount: Many airlines offer telematics programs that can reward you with low fees to demonstrate safe driving habits.
- Student discount: Students may be able to save on premiums with potential discounts for good grades or potential discounts enrolling in defensive driving courses.
- Payment Discount: These saving opportunities may be the easiest to make money. You can lower your fees by paying the premium in full or registering with paperless or automatic billing.
