Customizing Your Car and Insurance Concerns

Insurance companies make money by charging more in premiums than they will need to pay for claims. Because insurance companies are interested in keeping their costs down, certain individuals will receive higher premiums than others. For example, people who are at high risk of getting into an accident due to a driving history of accidents or speeding tickets will pay more for insurance than safe drivers. Additionally, vehicles that are expensive to repair will cost more to insure than those that can be cheaply repaired.

Because they raise the cost of repairs, aftermarket customization may increase your insurance rates. In some cases, the aftermarket parts will not be covered by insurance at all. Before you make any sort of customization, you should contact your insurance company to confirm what effect it may have on your rates and exactly what would be covered in the event of a claim.

Some customization can be covered by purchasing additional coverage on your policy. For example, many states have optional sound system coverage that can be applied toward aftermarket stereos, sub-woofers, and other sound equipment. If you choose not to take this coverage in a state that offers it, your aftermarket stereo system will probably not be covered by your insurance company.

Other aftermarket customization that may or may not be covered by a specific policy include custom paint, aftermarket rims, or aftermarket spoilers. Your insurance company may also refuse to cover work to lift kits, hydraulics, ground effects, or other types of special effects. In this case, your insurance company may also view your vehicle as a higher risk due to the nature of your customization, which will cause your insurance quotes to increase even higher.

Some customization may even cause you to lose your insurance. Car insurance is designed for use on vehicles that are used in daily driving practices, such as commuting to work or traveling. If the insurance company feels that you have made a change to the vehicle to optimize it for some purpose, such as racing or recreational off-roading, they may cancel your policy.

If you plan to make any customization to your vehicle, you should always review your policy first to make sure you understand how your insurance may be affected by your choice. If in doubt, contact your agent or customer service representative and ask how your rates will be affected and what additional coverage you may need to buy.

Leave a Reply