Modified car insurance covers aftermarket parts and customisations to your vehicle. If you have modified your car, you need to update your insurance policy to include these changes.
What is Modified Car Insurance?
Modified car insurance is coverage for vehicles that have been modified or altered beyond the original manufacturer specifications. A standard policy with comprehensive coverage and collision coverage usually protects your vehicle from physical damage but may not cover the modifications or customizations made to the vehicle.
To fill this gap, some insurance companies offer additional coverage for modifications at an extra cost. A modified car insurance policy covers both the original vehicle and the modifications.
Without this type of custom car insurance, if you have an accident, your insurance policy will only cover the vehicle as it was originally manufactured. This means they will only reimburse you the actual cash value of the car as if it was not modified.
Does Standard Car Insurance Cover Modifications?
No. Insurance companies will only sometimes offer coverage for customizations you make to your vehicle. This means your existing car insurance policy will not apply to any modifications.
Some traditional insurers offer modification coverage as part of their standard car insurance policies but others don’t.
You may be able to get a classic car insurance policy from national insurance providers but it depends on the type of vehicle. To be covered under a standard insurance policy, the modifications must be permanently installed in the vehicle.
For more extensive customization or unique vehicles, specialty car insurers may be a better option for custom vehicle insurance.
Specialty classic car insurance companies cater to sports cars, hot rods, classic cars, collector cars and heavily modified vehicles. They will offer coverage plans with specific terms and conditions if your primary insurer doesn’t cover modifications.
What are Different Types of Car Modifications?
There are a wide range of modifications you can make to your vehicle. Some custom parts are simple, while others require internal work.
The idea of modified vehicles can be very vague, and you may not even realize how drastically it changes the value or status of your vehicle. Vehicle modifications can include replacing or customizing any of the parts listed below.
- Custom wheels
- Custom Paint
- Roof rack
- Racing Seats
- Stereo System
- Tinted windows
- Truck bed liner
- Adaptive headlights
- Interior and Exterior Special Lights
- Supercharger or Turbochargers
- Suspension system upgrades
- Body Kits
- Modifications for disabilities (ex. ramp)
- Rearview camera/sensors
- Anti-theft devices
As you can see, some of these modifications are significant, like adding a supercharger, while you can install others yourself like a stereo system.
However, the value of these modifications matters to insurance providers. Modifications change the value of your vehicle and your auto insurance policy will reflect that.
What are the Benefits of a Modified Car Insurance Policy?
If you have modified your car, you need modified car insurance. This type of car insurance has many benefits:
- Modified Parts Covered: A standard auto insurance policy doesn’t cover aftermarket modifications so if your car is damaged or stolen you’ll be liable for the cost of repairs or replacement of those parts. Modified car insurance covers those performance parts.
- Your Policy Protected: Not disclosing modifications to your insurer can invalidate your standard auto policy due to material misrepresentation. By getting a modified car insurance policy you protect your overall insurance coverage.
You must get modified vehicle insurance before driving a modified car. If you have an accident or another driver makes a claim, the auto insurance company may not cover you if the modifications aren’t listed. With enough extra coverage you can protect both your car and its expensive modifications.
Also modified car insurance ensures your policy remains valid. Not disclosing a vehicle modification can invalidate your policy and you may be liable for claims or unable to replace your car if it’s stolen or totaled.
How Much Does Modified Car Insurance Cost?
The cost of insurance for a modified vehicle depends on the level of insurance coverage you need and the type of modifications done to your car. Since modifications increase the value or risk of your car, you may pay more to cover it.
If the modifications make your car safer, like safety features installed, the increase may be minimal or even zero. Insurance providers might also consider some modifications as higher risk and that can impact your insurance premiums.
Agreed Value Policy
If you want full coverage for all your vehicle’s mods, some car insurers offer an agreed value policy that’s tailor made just for you. This type of car insurance policy takes the total value of your car, including all the upgrades and custom work, and comes up with a figure that both you and the insurer agree on.
If you wind up with a loss that’s covered by the policy, the insurer will pay out up to that agreed value to either fix or replace your car.
Some specialty insurers also throw in extra options to cover the cost of restorations and spare parts. This is something you might want to think about if you’re in the middle of a restoration project or have some fancy tools or spare parts lying around. It’s all about giving you even more financial protection.
The thing to keep in mind is that these extras are going to add to your insurance costs, but it’s worth it if you want to make sure you’re properly covered.
Can I Get Insurance Discounts for Car Modifications?
Some modifications can actually help make your car safer, but that doesn’t always mean you’ll get a discount on your car insurance. But there are definitely other ways to cut your car insurance rates after you’ve made some mods:
- Telematics Discounts: Many insurers have telematics programs that reward safe driving habits with cheaper premiums.
- Student Discounts: If you’re a student and you can keep your grades up or take a defensive driving course, you might be eligible for lower premiums.
- Payment Discounts: Paying your premium all at once, switching to paperless billing or just setting up automatic payments can also get you a discount.
By looking into these car insurance discounts, you can at least offset the potential increase in your premiums and find a car insurance deal that works for you.
How to Buy Modified Car Insurance
Standard car insurance policies don’t cover modified parts and some modifications may not be covered at all even with a modified car insurance policy. We recommend checking how a specific modification will affect your auto insurance rates before you make the modification. Some insurers may adjust or exclude coverage for certain modifications.
Adding modifications to your custom car insurance policy will increase your insurance rates. This is because repairing or replacing modified parts is more expensive. Surprisingly even minor modifications can increase your premiums as much as major changes. To avoid surprises ask for any proposed policy changes in writing so the rate matches the quoted amount after the modifications are made.
The type of coverage and the amount of increase varies by insurance company. Some will require a modified car insurance policy while others will offer custom parts and equipment coverage. These add-ons usually cover modifications up to a certain value. Compare multiple quotes to see if adding a certain part will increase your insurance cost significantly.
Keeping an updated list of all modified parts is also important in case you need to file a claim. If you add or remove modifications, update your policy as soon as possible to make sure the new modification is covered.
Modified Car Insurance is Easy With Insurance Navy
Modified car insurance is a must for your car and its modifications. Whether you’ve added performance parts, cosmetic parts or other after market modifications, having the right coverage will protect you from potential losses and repair costs. With the peace of mind that your modifications are fully insured you can enjoy your car.
Don’t wait to get covered, contact an insurance agent right now! Get a free car insurance quote online or call Insurance Navy 888-949-6289 today!
