Modifying your car can make it stand out and make your car unique. Modifying your car can make it stand out, increase its performance, or give you custom paint options. A disability may require modifications to their vehicle so that they can drive or take a passenger. For safety reasons, you can modify your car.
No matter the reason, car modifications can cost more than just parts and accessories. It may cost you more to insure your car depending on what modifications were made.
What is a modified vehicle?
Modified cars are those that have been altered in some way, such as aesthetically or through the installation of parts to improve performance or add safety features. These modifications are common to car models:
- Adaptive equipment for disabilities
- Custom paint
- Custom wheels
- Exterior and interior lights
- Harnesses and racing seats
- Stereo systems
- Turbocharger or supercharger
- Suspension upgrades
- Winch system
- Tinting windows
While you may be able to do what you like with your car, modifications could void the manufacturer’s warranty. Before you modify your car, it’s worth doing some research to make sure you understand what you are getting into.
What is modified auto insurance?
A standard car insurance policy that includes collision and comprehensive coverage covers damage to your vehicle in the event of an accident. This coverage does not cover modifications or customizations.
Insurance companies may offer additional coverage to cover customization and modification. You will only be covered for the original car manufacturer version if you are involved in an accident. If your modified parts are also damaged, this could result in a significant loss.
Your insurer may not cover modifications
While some traditional insurance companies provide modification coverage for regular car insurance policies, others don’t. Although you may be eligible for a classic policy with companies such as AAA or State Farm to cover your car, not all vehicles are eligible. To be covered by standard car insurance, mods must be installed permanently in the vehicle.
You can also find specialized insurance companies that offer coverage for classics, hot rods, and modified cars, but with some limitations. If your insurer doesn’t cover modifications, companies like American Modern and Hagerty can provide coverage.
What do I need to inform my insurance about my car modifications
You don’t need to inform your car insurance company that your vehicle has been modified. You may not have to if your liability coverage is limited. If you have collision or comprehensive coverage, modifications that you purchased won’t be covered in the event of an accident.
It is not enough to tell your car insurance company about your modifications. You will need to show receipts, proof of purchase and photos showing how the modifications were installed on your vehicle.
What is the cost of modified car insurance?
Modified car insurance costs vary depending on the amount of coverage you require and what modifications were made. Car insurance will cost you more because you’re asking for more coverage in the event that there is a loss. The insurance company might also consider making the car a high-risk vehicle, depending on what modifications were made. This could increase the cost for your car insurance.
Agreed value policy
A few companies offer an agreed-value policy that covers car modifications. This may be the best option for modified vehicle insurance. The agreed value policy outlines the car’s value, including any modifications. This is what you and your insurance company agree to. The insurance company will pay the agreed value for your car to be repaired or replaced if you are in an accident.
A few specialty or agreed-value car insurers may also provide coverage for repairs and spare parts. These optional coverages are more expensive but provide greater protection if your car is being repaired or you have special tools or spare parts.
Modifications Discounts
Some car modifications come with a higher price tag for car Insurance . You may be eligible for a discount if you modify your car to make it safer. There are many ways to get discounts on your modified vehicle, whether it is a hot rod, classic, or simply a modified version.
- Completion of a safe driving program approved by the state
- Drive less miles
- Anti-theft devices can be installed and used
- You can insure more than one vehicle through the same insurer
- Renter’s and home insurance can be purchased from the same provider
- Keep your car in show-quality condition and only drive it on special occasions
- Choose a higher deductible
- You must provide proof of membership in a car club
- Keep the vehicle stored in the off-season. Provide proof
It may be worthwhile to shop around if your insurance company doesn’t offer car modification discounts. You might be able find the best deal if you switch car insurance companies. Each company has their own criteria and rates to modify cars.
Questions frequently asked
What happens if I purchase a car that has been modified?
Although you don’t need to modify the car yourself, it is a good idea to inform your insurance company. If you don’t have receipts but want them covered, take photos and provide details about serial numbers and other identifying elements to your insurance company. You can choose not to have coverage for car modifications if you let your insurance company know.
Does debadging count as a modification?
It’s technically still a modification if you take out the badges and emblems of the manufacturer. However, this type mod will not affect your car insurance rates.
Is a roof rack considered a modification?
Even if the roof rack is purchased from the dealer, it still counts as a modification. It shouldn’t impact your car insurance premium if it’s included with the MSRP. It is a good idea to inform your insurance provider if you have added it after you purchase so they can decide if you require additional coverage.
