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Can you get car insurance for a custom car?

In general, custom cars are more expensive to insure. Most aftermarket modifications increase the value of a vehicle, which means your car insurance rate will go up. Every time you make a new modification, it’s a good idea to report it to your insurance company. Failure to disclose modifications could result in a denied claim.

Can you get car insurance for a custom car?

There are seemingly endless ways to customize a car. Purchasing an aftermarket sound system, upgrading the suspension, adding custom rims, and installing an engine supercharger are just a handful of the upgrades that drivers are making to their vehicles. But how do car modifications impact your car insurance? We’ll explain how custom car insurance works in this article.

Does insurance cover modified cars?

In most cases, a traditional car insurance policy will not provide full coverage for a customized vehicle. Depending on what modifications you’ve made, it can be more difficult and more expensive to repair your car after an accident.

If you have modified your car, you will probably need to purchase a car insurance endorsement that specifically covers custom parts and equipment. Without this endorsement, it’s possible that your car insurance policy wouldn’t cover the damages to these parts if you got into an accident or filed a claim.

There are many national and local insurance companies that offer custom car endorsements. For example, Farmers and Progressive both offer a custom parts and equipment endorsement that you can add to your existing full coverage car insurance policy.

However, this endorsement might have limited coverage. For example, Progressive’s website mentions that custom parts and equipment policies typically have a maximum coverage limit of $5,000. So, if you’ve made $10,000 in modifications, this policy wouldn’t cover the full value.

Another option is to consider a separate modified car insurance policy. There are a handful of car insurance companies that sell policies specifically for customized vehicles. Some of these companies include Hagerty Insurance, American Collectors Insurance, and NCM Insurance.

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Are custom cars more expensive to insure?

In general, custom cars are more expensive to insure. Most aftermarket modifications increase the value of a vehicle, which means your car insurance rate will go up. Every time you make a new modification, it’s a good idea to report it to your car insurance company, otherwise, it might not be covered.

However, there are some modifications that can help you save money on auto insurance. For example, if you install certain non-standard safety features, like an anti-theft device or anti-lock brakes, you could qualify for a car insurance discount.

Is there insurance for modded cars?

Some car insurance companies offer a special policy that covers modified vehicles. In addition to the basic coverages, like liability and collision insurance, modified car insurance also provides coverage for the customizations you’ve made. Typically, these standalone policies provide higher levels of coverage than a custom parts and equipment endorsement.

If you have a modded car, you aren’t required to purchase a special type of auto insurance for it. A standard car insurance policy will still cover the vehicle, but it may not cover all the modifications you’ve made.

Here’s an example. Let’s say you purchase a Ford Mustang and get a custom car wrap, which costs $1,000. If you get into an accident and total the vehicle, you would only be compensated up to the actual cash value (ACV) of the car, which does not account for the modification.

You might argue for a payout that reflects the modification, but your insurance company probably won’t agree. The only way to get coverage for your car and the custom car wrap would be to purchase the proper endorsement or buy a separate modified car insurance policy.

Do I have to tell my insurance if I mod my car?

If you customize your vehicle, it’s smart to tell your insurance company. Failure to disclose modifications could result in a denied claim or even a canceled policy. However, it depends on the type of modification you’re making and how much it costs.

For example, if you’re replacing the sound system, you should definitely report the modification to your insurance company. If someone were to steal the sound system out of your vehicle, you would want your car insurance to replace it or compensate you appropriately.

Without reporting the upgrade, your insurance company would probably only agree to replace the sound system with the OEM version, which likely has a much lower value than the one you installed.

On the other hand, making smaller upgrades might not have as much of an impact on your car insurance. For example, if you spend $400 on aftermarket rims, and you don’t mind paying out-of-pocket to repair or replace them after an accident, you may not need to report the upgrade to your insurance company.

What is the best custom car insurance?

The best custom car insurance is different for everyone. It depends on the kind of car you have, what modifications you’ve made, what coverages you want, and your budget. To choose the best modified car insurance, it’s wise to compare quotes from multiple car insurance companies. This way, you know you’re getting the coverage you need at the best price.

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

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We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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