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Three Major Issues Concerning Insurance For Modified Cars

Do you plan to modify your car? Many car enthusiasts aren't content with the stock versions of their automobiles. As long as what you are doing isn't illegal, you can go ahead and modify your car any way you want, but you should know that it will affect your car insurance coverage. Here are three major things to know about insurance for modified cars:

Your Standard Coverage Is Likely To Be Inadequate

Standard auto insurance isn't likely to cover your modified car because it presents a higher risk than standard auto insurance premiums cover. The various reasons for this include:

  • Some modifications increase your car's appeal and make it a target for thieves.
  • Modifications that increase a car's power increase its risk of getting involved in an accident.
  • Parts used for modification are expensive.

All these increase the amount of money your insurer is likely to spend on you, and the insurer won't be willing to take that extra risk at the same price (standard insurance coverage premiums).

You Have Several Options When It Comes To Coverage

Since standard coverage may not be right for you, here are some suitable options:

  • Comprehensive coverage – Some insurers sell comprehensive coverage that covers specific modifications. Check with your insurer to see whether your modification is covered. Your state's laws may also have a say on the matter.
  • Custom parts and equipment coverage – Just like the name suggests, this coverage is targeted at after-market installations, and you buy it in addition to your standard insurance.
  • Collector car insurance coverage – Some insurance companies also extend their collector car insurance to cover muscle cars (high-performance cars), so that can be your source of coverage too if your car qualifies for the designation.

There May Be Exclusions

Finally, you should also know that your modified car insurance isn't a blanket endorsement for you to do anything to your car or behave any way you wish. There are some actions or damages that your car insurer may not be willing to cover even if you have modified car insurance. For example, most companies will not provide coverage for damages incurred while racing. It's up to you to scrutinize your policy and understand what it covers and what it doesn't.

If you own a modified car or are planning to modify one, the above discussions provide a good starting point for understanding its insurance coverage. However, you can only get the specifics by talking to your insurance agent or your insurer, such as Allstar Insurance. Ideally, you should do this before installing the modifications.