Modified car insurance covers the modifications you make to your vehicle. If you drive a vehicle with any aftermarket parts or modifications, it is important that you update your insurance policy to cover these.
What Is Modified Car Insurance?
Modified car insurance is a type of insurance that covers modifications to a vehicle. Modifications or customizations are added parts that don’t come from the factory, also referred to as aftermarket. Most traditional insurance policies do not cover these modifications. But, with a modified insurance policy, you can ensure you have enough coverage for your entire vehicle, including the aftermarket parts.
Different insurance providers have different definitions of what is and is not modified. Modified car insurance is usually a replacement-cost policy, which means it covers the value of the modified parts on your vehicle. This means you might have to work with an appraiser to list and value your modified parts. You and your insurer will likely need to come to an agreement on the vehicle’s value. While this type of policy might cost more than a standard policy, it usually offers better coverage.
What Are Different Types of Modifications?
Modifications include changing factory parts. Drivers might add these parts to alter the vehicle’s appearance or performance. Modifications might include replacing any of the following parts:
- Custom paint
- Running boards
- Truck bed liner
- Fuel system upgrade
- Higher or lower suspensions
Changing a vehicle’s factory parts changes its value. Insurance providers might also consider whether you installed the parts yourself or had them professionally installed. Some modifications can actually reduce your insurance premium. For example, if you add a rearview camera or an anti-theft system, you are improving the safety and security of your vehicle and reducing your chances of filing a claim.
Benefits of Modified Car Insurance
If you have any modified parts, you need modified car insurance. A modified car insurance policy can offer the following benefits:
- It covers modified parts: Traditional policies don’t usually cover modified parts, leading to expensive out-of-pocket costs if you are in an accident or your vehicle gets stolen.
- It protects your policy: Not listing modified parts in your policy could cause it to be voided. By buying a modified policy, you also protect your coverage.
Make sure you have modified car insurance before driving a vehicle with modifications. If you are in an accident and you or another driver files a claim, the insurance company might deny it based on the modifications. By ensuring you have sufficient modified insurance in the first place, you can confidently protect your vehicle and its expensive parts.
A modified car insurance policy can also ensure that your policy is active. According to Insurance.com, not listing modifications on your policy can void it due to material misrepresentation. This can lead to you having to pay a claim out of pocket. It could also mean your insurance company will not pay to replace your vehicle, even if it is totaled or stolen.
How to Buy Modified Car Insurance
In most cases, your insurance policy won’t automatically cover modified parts. Some modifications don’t qualify for coverage, regardless of whether you have modified car insurance. Policygenius recommends finding out how much a certain modification will change your insurance rate before making the modification. Your insurance company might choose to remove coverage for some modifications.
Adding modifications to your insurance policy is likely to increase its rate. Repairing or replacing modified parts is usually more expensive, which means you will pay more to insure it. Additionally, minor modifications can lead to the same increase in rates as bigger ones. Ask for any proposed policy changes in writing so you get the same rate the company quoted you after the modifications are complete.
The type of insurance and the rate at which it increases depend on your provider. Some insurance providers might require a separate modified car insurance policy, whereas others might have custom parts and equipment add-on plans. This form of supplemental insurance will usually cover up to a specific value of modified parts. Getting quotes ahead of time can also help you budget and ensure that adding a certain part to your vehicle won’t increase your insurance rates significantly.
It is also helpful to have a list of all modified parts in the event you have to file a claim. If you add or remove any customizations, update your policy so it has the most accurate information.
Best Insurance Providers for Modified Car Insurance
Choosing the right insurance provider is important to make sure you have enough coverage for your modified vehicle. If your current insurance provider does not offer modified car insurance, you might find coverage through a provider that offers nontraditional coverage, such as insurance for classic or vintage vehicles. Providers to consider include:
- J.C. Taylor
- Condon Skelly
- American National
Hagerty is a top insurance provider for classic and modified vehicles. The company bases its policies on an agreed-upon value, which means you and the appraiser come to an agreement on how much your vehicle is worth and how much coverage you need.
Some providers, such as Allstate and Esurance, might also offer modified car insurance but often have specific requirements to qualify. Other insurance providers that might offer modified car insurance include Nationwide and Progressive. These providers usually have a maximum amount they will cover.
Talk with your insurance agent to better understand the types of modified car insurance available and the rates you can expect. It is also important to shop around and compare quotes between multiple providers. One insurance provider might increase your rates significantly for a certain modification, whereas another does not charge as much.
If you have aftermarket parts or modifications made to your vehicle, then you need insurance that includes modifications. This ensures you are protected and your policy is valid if you have to file a claim.