How Aftermarket Modifications—Like Upgraded Engines or Body Kits—Affect Insurance Coverage and Premiums

Obtaining auto insurance is an essential consideration for vehicle owners. While most auto insurance policies have similar elements, they must be tailored to the specific vehicle and its driver(s). For example, if a vehicle has been modified in any way, it may require additional limits or coverage.

What Insurance Do I Need for Vehicle Modifications?

If you plan on customizing your vehicle, you may need the following types of coverage:

• Supplemental coverage can offer additional financial protection for aftermarket components and other custom features. This is typically considered an endorsement of your policy and will require you to have comprehensive and collision coverage already.

• Stated amount coverage can pay out the actual cash value of your vehicle (minus the deductible) in case of a total loss. This is a smart choice for vehicle owners who have a significant amount of custom parts or equipment.

• Classic car insurance is a type of policy that can financially protect collectible and rare vehicles, including modified and custom cars. An insurer may recommend this type of policy instead of standard auto insurance.

What Are Common Modifications?

Common modifications or custom elements include the following:

• Chrome bumpers

• Special lights

• Custom paint job

• Upgraded stereo systems

• Suspension enhancements

• Strut bars

• Engine turbochargers

Do Car Modifications Affect Insurance Premiums?

Modifications can make insurance premiums more expensive for the following reasons:

• Modifications may increase the value of the vehicle.

• Modifications may increase the risk of a vehicle being broken into or stolen.

• Engine modifications may make the vehicle appear more dangerous to an insurer.

Learn More

Contact Donald L Atwell Agency to review your auto insurance policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.