When you apply for car insurance you usually provide the car’s VIN number to get an accurate quote. The VIN number gives the insurer specific information about the car and helps them to better estimate your insurance costs. If you’ve modified your vehicle beyond the original factory specifications, it’s up to you to notify the insurance company so you can be quoted for modified car insurance.
Insuring modified cars is no different than any other type of insurance, it’s just that depending on how you have modified the vehicle, your costs could go up or down. (Hint: usually its up!)
Let’s learn more about insuring a modified car.
What Is a Modified Vehicle?
Usually a car is modified to improve its performance or its appearance or to add some type of cool functionality. Some common modifications include:
- Enhanced power packages
- Enhanced suspension packages
- Custom paint
- Custom wheels
- Wi-Fi/Stereo upgrades
- Mobility modifications
As you can see, these modifications improve the car and add value to the car. These types of changes will likely cost you more in insurance premiums.
What Modifications Can Bring My Insurance Costs Down?
There aren’t many modifications that will bring your car insurance premiums down, unless of course they reduce risk for the insurance company. One of those is of course anti-theft devices. You’ll get a modest break for making your vehicle harder to steal!
Do I Need Modified Car Insurance?
If you have modified your car to the extent that you don’t want to lose the money you put into it if you have an accident, then yes, you should discuss your modifications with your insurance company. Depending on the modification, your rates may rise slightly higher. But if this means you will be reimbursed for your wheelchair modifications, it may be worth it.
Note also that if you make modifications and fail to notify your insurance company, you may find your coverage voided if you have an accident.
What About an Agreed Value Policy?
Also known as a guaranteed value policy, this is an agreement between you and your insurer about the value of your car. You negotiate a value with the company that you will get if you have an accident and the car is a total loss. You’ll have to have receipts and photos that show the modifications.
Personalizing and modifying a car is an important hobby for some people and for others is a necessity. Either way, it’s important to keep your auto insurance company in the loop. You can talk to them ahead of time to find out how a modification might affect your payments.
When you’re looking to save money on insurance it can pay to shop around. InsuranceWins makes it easy for you with a simple to use online auto insurance quote form that can help you feel good that you are getting the right coverage at the right price.