If you have ever seen the show Pimp My Ride, then you know that there are some seriously cool car mods out there now that can bring your vehicle to the next level. But did you know that to drive your new souped-up vehicle you need modified car insurance?
Modified refers to any changes made to a vehicle by someone other than the manufacturer. Some examples are adding a hydraulic suspension or racing spoilers to your Camaro.
These changes are a lot of fun, but your modifications aren’t automatically going to be covered. If something happens you would be underinsured and have a difficult time getting the amount that you feel matches your vehicle’s worth.
You don’t want that to happen to you. Keep reading to learn what steps you can take to get modified car insurance at the lowest rate possible.
Are My Car Modifications Covered by Insurance?
Some changes can be made to a vehicle without having to alert your insurance provider. There are basic modifications that are generally covered by the average insurance company, but be sure to check with yours.
Modifications typically covered by insurance automatically include:
- Alloy Wheels
- Bike Racks
- Bull Bars
- CD Stacjers
- Chrome Exhaust Systems
- Driving Lights
- Leather Seats
- Reverse Cameras
- Roof Racks
- Tow Bars
Modifications that will most often require additional coverage include:
- Custome Paint Jobs
- Roll Bars and Roll Cages
- Racing Harnesses
- Nitro Fuel Equipped Engines
- Hydrogen Fuel Equipped Engines
- Turbo Engines
- Supercharged Engines
- Stereo System Equipment
- Auxiliary Lights
- Custom Tires
- Custom Rims
If you have made any of the modifications to your vehicle that are listed above, then you definitely need additional coverage. Keep reading to find out what you need to do to secure the best price when insuring your modified vehicle.
What Type of Modified Car Insurance Do I Need?
In addition to the typical insurance coverage like liability and comprehensive coverage, you will need additional coverage to make sure your customized car is taken care of in the event of an accident.
There are two different types of modified car insurance – supplemental coverage, and collectible car insurance. Supplemental coverage is sufficient for mods and aftermarket changes made that cost less than four thousand dollars.
A supplemental coverage policy could run you as much as ten percent of the cost of the modifications as a yearly premium.
The other option you have when analyzing modified car insurance policies is to opt for collectible car insurance coverage. There are companies in the marketplace that specialize in providing coverage for modified vehicles. They have the experience and knowledge to see your vehicle’s worth and want to help you protect it.
How Can Specialized Car Insurance Help Me?
If your coverage is currently provided by a mainstream insurer, you may find it impossible to get coverage for your performance enhancing modifications. This is especially true for modifications made to engines and suspensions. You may have to contact a specialist insurer for coverage.
A specialized provider will be able to insure enthusiasts because they understand the high level of love and dedication that these vehicles demand.
How Much Should I Insure My Car For?
There are two different methods for choosing a value for your vehicle when you are requesting an insurance plan. The first is to go with the market value.
Unfortunately, the market value of a vehicle will never be enough to cover your modifications. In addition, the market value of cars goes down every day from the moment they are driven off the lot. Their value depreciates at a staggering rate.
You don’t want the replacement value of your car to be tied up in the fluctuations of the market value. If you do, you will always be underinsured.
The other option you have for assigning a value to your car is to agree on what it is worth with the insurer providing your coverage. This agreed value will be locked in once you have purchased your insurance plan and is incredibly difficult to modify.
Although this option allows you to recoup a larger portion of your investment in modifications after an accident, it is not all sunshine and daisies. These plans are generally incredibly expensive, especially if you are a young driver.
How to Get Lower Rates for Young Drivers
If you are a young driver you may find it near impossible to find affordable coverage for your modified vehicle. But, there are a few steps you can take to make the process more productive.
The first is to compare your choices from all insurance providers, not just the big names. Large companies just want to insure as many standard vehicles as possible, they don’t like to get caught up in the messy negotiations that may come along with insuring a modified vehicle.
A small provider will take their time evaluating your driving history and assessing your risk before they make an offer. They need the business and by insuring a modified vehicle they will be able to charge a higher premium, padding their pocket in the short term.
Another option you have is to look for discounts. Options include taking a defensive driving course, maintaining a spotless driving record, getting a multipolicy discount, adding safety features, or limiting your driving.
If you can’t find any good discounts, then your last hope is to raise your deductible. This may be the only way to get your premium in a range that you can afford.
Be careful if you choose to raise your deductible, in the event of an accident you don’t want to be unable to take advantage of your coverage because you’re short on cash.
The Bottom Line
Securing modified car insurance is difficult, but very possible. There are specialty providers in the marketplace who are more likely to give you a good deal than the big name companies.
If you are looking to invest in modifications for your vehicle, consider taking out a loan with Bonsai Finance. We love to work with enthusiasts like yourself to make your dreams come true.