Most people drive their cars from point A to point B without thinking twice about how their car looks or what people think of their vehicle. However, as car enthusiasts, it can often be torture to not add some sort of modification to your car. Whether for performance or aesthetics, changes like hood scoops or lift kits, can enhance your vehicle and show off your personality in the process. These modifications, though, can also affect your insurance rates.
Though many people do not see why modifications can affect their insurance rates, insurance companies view alterations as an increased risk; a risk that can cost them a lot of money. The danger lies in significant events such as car accidents and car thefts, where your vehicle will have an increased cost of repairing or replacing.
In the event of a car accident, an insurance company will need to repair your car with new parts. When these repairs are done, depending on the extent of the damage in the accident, an insurance company will need to cover the price of whatever parts need replacing. If your $11,000 body kit gets destroyed in a crash, for example, then the insurance will need to replace the body kit with a new one; if it is covered under your policy. For parts that are rare, this can pose an additional issue.
Keep a record of all modifications to your vehicle. If your vehicle is damaged or stolen, your insurance company will need receipts to provide you with a check for the value of your car and parts on it. Some insurance companies or body shops may use aftermarket parts to repair the vehicle, although, an OEM Parts endorsement may be available if you prefer.
Modifying your vehicle can increase the value of the vehicle, and you may or may not want to be covered for that additional value. Increased premiums may apply for a modified vehicle, however, that rate ensures that your vehicle will be replaced back to the condition prior to the accident, or that you receive the full value of the vehicle if it is stolen.
If you have any questions about whether you think it may or may not be worth it for extra coverages for parts, feel free to reach out to us at 888.279.9701 and we can help you shop around.