A complete guide to modified car insurance!

Car enthusiasts typically look for ways to modify their cars and improve their car’s performance to enjoy a high-end feel in their vehicles.

 Normally, the aftermarket parts for car customization are legal, though you might face some issues in getting a standard vehicle insurance policy that protects such customized upgrades.

Luckily, modified car insurance is there to provide the insurance coverage that you are looking for. Now you can rest assured that everything is protected.  This type of insurance specially deals with the upgrades you make for a personalized ride experience. Here are some guidelines regarding the modified car insurance that you must check.

Modified car: what is it?

If any changes like modification in functionality, appearance, or performance are made to an original factory car to improve its performance then it is called modification of the car. If you add a pinstripe decal along the side of your vehicle or tint its windows, do you have to worry about searching for customized car insurance for that? Maybe, at the minimum, you must let your car insurance company know about the modifications you are going to make. The underlying reason is, your standard car insurance policy most of the time does not cover such modified changes. 

Used Car Insurance Policy
Source: adamC3046

In an average case scenario, insurers do not specify modification levels. Adding some aftermarket parts, for instance, changing your original roof with a secondhand roof rack will be considered equal to dropping your car’s suspension. Therefore, it is always recommended to let your insurance company know before making any modifications to your vehicle so that they could tell if you need to buy separate modified car insurance or they can cover it in the existing policy. Sometimes, as an alternative, you might have to look for other insurance companies that offer customized car insurance.

Who needs modified car insurance?

People who have already spent a lot of money on their car modifications and their standard car insurance policy does not cover those modifications – probably must get modified car insurance. The bigger the investment you make in modifying your car, the more important it gets to purchase this insurance coverage.

Following are a few things that you must know before purchasing a modified car insurance policy:

Modifications standard that auto insurance won’t cover

Typically, insurance companies do not cover upgrades you make to your car. For instance, some car insurance companies like Esurance clearly state that their standard auto insurance policy will only cover the authentic equipment added by the auto manufacturer. Similar is the case with comprehensive and Collision coverage.

Esurance further clarifies that modifications like upgraded custom rims or an upgraded stereo system are not included in the standard auto insurance policy and the same goes with other insurers. However, what must be and must not be included in a standard policy may differ from insurer to insurer. 

Insurance Coverages for your Custom Car
Source: motor1

Must have insurance coverages for your custom car

To ensure that your car insurance company covers the upgrades you have made, discuss with your agent about the policy changes you would need and get help to acquire some sort of customized car insurance.

In some cases, insurers sell something in particular for custom-built parts and equipment of cars, and as per the Progressive Corporation, gathering information about such plans will help you get reimbursement for damages of the modifications you have done to your vehicle.

For instance,

  • Enhanced stereo system
  • Upgraded navigation system.
  • Rims or upgraded wheels.
  • New paint jobs

According to Progressive corporation, such coverages have a limit of approximately $5000.

People who have a souped-up car, not in use, should get in talks with their agent about the modified car insurance policy. It is universally known that custom cars are not meant for going grocery shopping every day, thereby their insurance is less risky.

As a matter of fact, around the world, classic vehicle insurance is 42% less costly than standard car insurance.

Who needs Modified Car Insurance
Source: financeone

Here are a few car insurance companies that offer different modified car insurance policies:

Allstate: offers coverage for vintage or classic cars above 25 years old.

Esurance: provides supplemental coverage of around $4000 for modified or aftermarket parts and equipment.

Grundy: a classic car insurance company that offers agreed-value insurance policies.

Hagerty: a specialist of modified car insurance, offers collector and classic car insurance.

Nationwide: provides agreed value insurance policies.

Progressive Corporation: It adds $1000 in comprehensive and collision policies for modifications. It also offers a separate $5000 for modifications coverage.

Safeco: offers agreed to value policies on classic car insurance.

Used car insurance policy

A used car insurance policy is like a regular car insurance policy which is meant to safeguard vehicles from future adversities and prevents you from paying hefty amounts for damages. However, used car insurance policies cover second-hand cars from both third-party liabilities and own damage risks.

Modified car insurance offers additional coverage for modifications made to a car. Though, some car customizations are illegal and not covered under modified car insurance policies. Talk to your insurance agent and get your modified vehicle insured beforehand to prevent any future complications.

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