Insuring Vehicles With Modifications and Custom Work
Many auto insurance carriers today are faced with an increasing number of customized vehicles.
This creates a unique problem because it is hard to place a value on something fabricated from scratch, since there is no standard for pricing.
This can lead to very different quotes for the same damage, depending on which company did the appraisal.
Because of this discrepancy in stated value, most insurance companies will not cover any custom modifications to a vehicle.
Those insurance companies that do offer coverage for modified vehicles typically require a stated value amount that they will go up to but not above.
It is important for owners of modified vehicles to mention the custom work or parts on their car to their insurance agent in order to obtain the correct type of policy and adequate coverage, ensuring their custom vehicle is covered in the case of a loss.
Any time an insured has a comprehensive and collision insurance policy on a vehicle and plans on doing custom fabrication on that vehicle they should consult their agent or broke to determine if the vehicle will still be covered and at what value.
If the current insurance carrier will not cover the modified car, the client may need to switch if they insist on continuing with the modification.
A lot of classic vehicles have custom or fabricated parts, and because of this they tend to be placed with stated value carriers.
These insurance carriers are designed specifically for this type of risk and will work with the consumer to find a plan that works.
The disadvantage to these types of policies is that the pricing tends to be higher than a standard policy.
Anything that does not come standard on a vehicle is considered a modification.
This can be anything from extra fog lamps to a lift.
If the parts used were produced by a reputable manufacturer the consumer will have a much better chance of getting a claim fully covered.
This is why it is always recommended that clients try to use suggested parts from a reputable manufacturer.
Most insurance companies agree to return a vehicle back to stock condition, so it is important to mention any additional aftermarket parts that have been installed to the insurance agent writing the policy.
By doing this it will allow the agent or broker to properly rate and place a policy, greatly reducing the chance of a claim being denied.
This creates a unique problem because it is hard to place a value on something fabricated from scratch, since there is no standard for pricing.
This can lead to very different quotes for the same damage, depending on which company did the appraisal.
Because of this discrepancy in stated value, most insurance companies will not cover any custom modifications to a vehicle.
Those insurance companies that do offer coverage for modified vehicles typically require a stated value amount that they will go up to but not above.
It is important for owners of modified vehicles to mention the custom work or parts on their car to their insurance agent in order to obtain the correct type of policy and adequate coverage, ensuring their custom vehicle is covered in the case of a loss.
Any time an insured has a comprehensive and collision insurance policy on a vehicle and plans on doing custom fabrication on that vehicle they should consult their agent or broke to determine if the vehicle will still be covered and at what value.
If the current insurance carrier will not cover the modified car, the client may need to switch if they insist on continuing with the modification.
A lot of classic vehicles have custom or fabricated parts, and because of this they tend to be placed with stated value carriers.
These insurance carriers are designed specifically for this type of risk and will work with the consumer to find a plan that works.
The disadvantage to these types of policies is that the pricing tends to be higher than a standard policy.
Anything that does not come standard on a vehicle is considered a modification.
This can be anything from extra fog lamps to a lift.
If the parts used were produced by a reputable manufacturer the consumer will have a much better chance of getting a claim fully covered.
This is why it is always recommended that clients try to use suggested parts from a reputable manufacturer.
Most insurance companies agree to return a vehicle back to stock condition, so it is important to mention any additional aftermarket parts that have been installed to the insurance agent writing the policy.
By doing this it will allow the agent or broker to properly rate and place a policy, greatly reducing the chance of a claim being denied.
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