Understanding the Impact of Car Modifications on Your Auto Insurance

Written By Charlotte Insurance on May 23, 2023. It has 0 comments.

2 mechanics working under a car while discussing the importance ot a modified car insurance policy

From auto enthusiasts to those who simply want a car that stands out from the crowd, car modifications are a clever way to highlight your personality and own a vehicle that’s truly unique. The only issue arises when you consider car insurance. Can you get a standard auto policy on a modified car? Or do you need something special that ensures your expensive modifications are covered should your auto get stolen or damaged? Read on to learn the answers to both of those questions and more.

What are Car Modifications?

Car modifications are technically defined as anything that customizes the vehicle. These modifications are different than the standard parts that a car, truck, or SUV comes with straight from the factory floor. Instead, they applied afterwards, by the new owner of the vehicle. There are several different categories that these modifications can fall into, including tires or wheels (sometimes both), truck beds and running boards, paint jobs, suspension changes (to make the vehicle higher or lower to the ground), and even adjustments to the fuel intake system or the exhaust system.

As you can imagine, these modifications can get expensive. Unless the owner of the vehicle is an expert mechanic, they usually go to a shop that specializes in customizations. There, they pay not only for the customization parts themselves, which can cost thousands of dollars, but also for the labor and expertise of the workers who are doing the job, which is expensive as well. For the owners of modified cars, these adjustments and custom details are worth every penny, although things get a bit complicated when they go to purchase auto insurance.

Can You Have Standard Auto Insurance on a Modified Car?

The short answer is yes, technically you can have standard auto insurance on your modified car, but the problem occurs when you go to call in a claim. Your claims may not be seen as valid, or they won’t cover the entire cost of replacing the car and its modifications. In fact, depending on your policy, not notifying your insurance agency about your vehicle’s customization can result in your insurance becoming null and void.

Consider these following examples:

  • You get into a car accident and are found to be at fault and your modified bumper and custom paint job are ruined. Your insurance may not cover the damage because you have modified parts.
  • Your modified car is stolen from your driveway. You call in a claim, only to find out that your standard auto insurance policy will only cover the car as it came out of the factory. It won’t provide compensation for all of the modifications that were stolen as well.

The Solution: Modified Car Insurance

What can you do to ensure that your modified vehicle has all of the necessary insurance coverage in place? Purchase a modified car insurance policy. These specialty plans are set up for modified vehicles, and require you to inform your agent about which modifications you’ve done and how much they cost in order to give you the right coverage.

Have Questions? Contact Charlotte Insurance

Think you may need a modified auto insurance policy? Contact Charlotte Insurance. Our agents can explore and explain all available options with you and put together the auto coverage plan that you need.

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