How to Handle Insurance for Your Custom and Modified Car

Aftermarket Mods

If you have made substantial modifications to your vehicle, you need to make sure that your insurance policy covers the real value of your car in its current condition. High-performance modifications or cosmetic structural changes to the vehicle can impact its value a great deal. If you are not insured for your modifications, you may not be reimbursed for the value of the custom rims you installed or the high end stereo system that you paid top dollar for. Some insurance companies will not extend their standard coverage to modified vehicles, while others will work with you to create a policy that covers your customized car realistically.

Possible Restrictions

Some insurance companies will agree to provide coverage for modified vehicles as long as the owner agrees to certain restrictions. The agreement may involve avoiding driving the car on a racetrack. You may have to agree to drive under a specific number of miles during the year. Since the value of the modified parts can easily exceed the original value of the vehicle, the insurance company might want to limit the amount of risk the car is subjected to. Some states also have regulations in place for insuring modified or custom vehicles.

Rate Changes

Some modifications can have a positive impact on your insurance rates. Installing anti-theft devices or extra safety equipment could earn you special discounts from your insurance company. Modifications that are designed to increase the car’s power or customize the way it looks may cost you more when it comes to insurance rates. Insurance companies tend to view modified cars at a high risk for being involved in accidents. Drivers who install high speed engines usually like to drive faster. Modified cars also have a higher risk of being stolen or damaged because they tend to attract more attention. Even adding custom rims or replacing stock parts with chrome can make your car a more visible target for thieves.

Communication is the Key

The best way to find the right insurance policy for a modified car is to research several different insurance options. Each insurance company will approach modifications differently. It is not necessary to pay exorbitant rates just because you have customized your car. If you are already insured when you make your modifications, make sure your insurance company is aware of everything you’ve done to the vehicle. Keep all of your receipts and track any changes so that you can refer back to them if you ever need to prove the value of your car due to theft or a collision.

Jessica Bosari writes about insurance topics for Car Insurance Quotes Comparison and Compare Auto Insurance. These sites are designed to help consumers learn more about insurance rates so that they can compare car insurance quotes and get the best rate available every time.