Thinking about customizing your ride?
You’d be hard pressed to be on the road for more than 10 minutes and not see a car or truck that has been customized in one way or another. In the past 20 years, the after-market auto modification business has been doing well to say the least.
One thing to keep in mind however, is while adding high performance parts and features can dramatically make you car or truck stand out, you may be adding to your auto insurance costs as well. Adding custom parts can leave you under insured or worse yet uninsured.
The best way to determine if your upgrade will affect your auto insurance policy is to contact your insurance agent/broker to make sure your coverage is right for the type of vehicle you have post upgrade.
Insurance experts explain that certain upgrades can put drivers at a greater risk making the type of coverage very important for optimal protection. Upgrades such as suspension lifts (or drops), additional horsepower or tinted windows can quickly become a safety issue while on the road.
Some upgrades that are seemingly done to make your vehicle safer (like better brakes) could increase your cost of insurance for the following reasons:
- Certain upgrades could increase the overall value of your vehicle making the payout higher in the event of an insurance claim.
- Upgrades that enhance vehicle performance generally mean that the vehicle will be used in a manner that is not consistent with the manufactures intended usage guidelines increasing the likelihood of an accidental collision.
- Modified vehicles often attract more attention from thieves that are targeting vehicles to steal increasing the risk of auto theft.
The most important thing to remember when making a modification to your automobile is that if the upgrade is done after selecting your coverage, your insurer can refuse to pay your claim. So before you add those custom rims or tinted windows, contact your insurance company to ensure that you have the proper coverage.
Remember an insurer could refuse to pay a claim and even leave you uninsured if you have not disclosed modifications to your vehicle. So before you invest time and money on a project that could raise your premium, call your broker or insurance company and verify that your insurance will remain valid.