If you asked a group of people what their most valued possession is, chances are, quite a few are going to name their cars. There’s this bond formed between a person and their vehicle, and it’s quite a strange one, really. You see men treating their cars as they would treat their own kids, and they care for them just as much from the looks of it. When you think about it, this kind of makes sense. Your vehicle is where you spend a lot of time during the day, so it’s only natural that such a bond would be formed. You can even take things to the next level by customizing your car, but would you need special auto insurance in that case?
How is your custom car insured?
Before we get into the customizations and their effect on your policy, you need to understand how this whole process works. When you go to an insurance company to get your custom car insured, they don’t really care about any modifications you might have made to the vehicle. The policy is based on the car’s market value, regardless of those custom-made headlights or quirky paint job. In other words, the insurance company doesn’t have to pay extra money to cover the adjustments you did to the custom car unless you agreed on that beforehand.
Do I need special auto insurance if I customize my car?
In a nutshell, yes, you do. As mentioned earlier, your regular insurance policy will not cover any upgrades if the vehicle is stolen. So, you have to take precautions to cover yourself from the get-go. What you need to do is increase the value of your insurance because you have customized your ride.
Find the right insurance company, to begin with
If you know that, in the future, you are going to upgrade your custom car insurance and add modifications one way or another, then you need to find an agent who specializes in these cases. An insurance company that has dealt with before with modified vehicles will make your life so much easier, and the entire process will be much smoother. Naturally, you need to take your time comparing the different choices available to find the best offer possible in terms of money and experience of the insurers. Even if you are dealing with a regular insurance company, ask around to see if they have specific agents who have dealt with this kind of situation before, because they will know exactly how to help you.
Notify the company
Even if you managed to select an insurance company that knows how to handle upgraded vehicles, you still need to notify them of any changes you make to the custom car. Failing to do so can result in you not getting any extra money if your car got stolen or something. So, to play it safe and keep the insurers involved, notify them of any significant or pricey changes you make to the custom car insurance so you could take it from there.
Paying the premium
Now that everything is set, you need to understand just how exactly your insurance company can increase your policy and by how much. You will find that a lot of those companies give you the option to pay a premium in exchange for them reimbursing you for some of the value of your modifications in case the car is damaged or lost. So, you’ll notice that some insurance companies offer something called a supplemental coverage for your modifications and upgrades to the vehicle.
How it goes is that supplemental coverage will pay you a specific amount of money in case those upgrades need to be repaired or replaced. But for that to happen, you will pay a premium to the insurance company, which you’ll agree on beforehand –– it’s usually 10 percent of the value of those modifications.
This kind of coverage usually includes things like a custom paint job, racing seats, racing tires, special wheels, TV or DVD additions, anti-theft upgrades, or most electronic updates to your car. But you should know that short-term upgrades aren’t usually covered under this. If you get things like radar detectors, they’ll most likely not be covered. Pro tip: keep each and every receipt of any upgrades you’ve made to the vehicle.
Can you guess what the premium payment are on this 1958 Chevy Impala Lowrider?
Reading the policy
Perhaps the most important part of this entire process is thoroughly going through the fine print of your insurance policy. You need to know what exactly is mentioned there, and how the insurance company will cover you –– and for what parts exactly. The last thing you need is buying an expensive upgrade for your car, only to find out it is not covered by your insurance company. So, you really need to go through the policy to understand how it works and what things you can add to your car safely, knowing you’d be reimbursed in the event they’re damaged or lost.
Other points to consider
Sometimes, the insurance policy will not be clear –– due to jargon or any other technical expressions. In that case, you are entitled to ask the company for clarification, and you should ask for it in writing. That way, you’d be ensuring your rights in case any legal disputes arise in the future. You should also always be honest with your insurers, and never hide any modifications you’ve done to the car. Doing something like that can cost you a lot of money in the future. Speaking of that, you definitely need to consider the costs of any upgrades for your car versus the risk factor. Will it be covered by your insurance? If not, should you get it?
Upgrading your car and adding all those cool features is definitely worth it, but you cannot rush into it. You’d be doing yourself and your car a favor if you took a moment to consider any upgrade before rushing to get it and try to also take your time with finding the right insurance company. When you do contract the best insurers, the entire process of getting your upgrades covered will be much easier, and you can modify all you want –– in accordance with the insurance policy, that is.
