Monthly Archives: December 2011

Car Modifications Can Be Covered by Insurance Policy

If motorists are thinking about modifying cars or they should check insurance consequences first. In the same way, they should check if there is any modification on the car when they are buying second hand cars. Those changes may not be covered by a standard policy and therefore, special arrangements may be necessary.

Any parts that have been added, replaced with modified substitutes or taken out of the vehicle outside the manufacturing process can be classified as custom work. These could be as simple as installing allow wheels and as complicated as changing the engine with a more powerful replacement. Most of them will probably increase the open market value of the auto.

car detailingIt is essential to mention these changes you are aware about your automobile. Point them out while getting quotes or afterwards as soon as you have done the work or it comes to your knowledge. Essentially, insurers assume that the car is typical of the model and make given unless they are told otherwise. Normally, there should be questions regarding the modifications during quote process anyway. You should fill them accurately and detail the alterations.

These alterations can be covered additionally with custom parts and equipment cover where necessary. Most policies would cover small changes usually up to one thousand dollars. So, you might not even need to make any extra premium payments anyway. However, it is better to be safe than sorry by just mentioning them anyway. At least check that the limit of changes allowed does not go above the work you carried out.

People can spend considerable amount of money on customizing and turning them to practically new cars. When there is an accident and it is totalled, insurers will only pay for the parts they know or assume to be there. You may have had a lot of detailing, installed many gadgets and parts that will improve your enjoyment. Notifying insurers and paying for custom parts and equipment coverage will make sure that you will be compensated for those loses as well.

When considering these additions only the fixed parts are considered. For example, spoilers, alloy wheels, better exhausts and a stereo system will be included. However, portable satellite navigators, radar detectors and handheld computers or movie players will be excluded. They can and should be taken out of the vehicle when leaving. In any case, you should take pictures of the modifications made and keep all the receipts. They may be required if you ever have to make a claim.

When insurers are not informed, some changes may actually cause more problem than not paying for the specific part after a claim. Anything that increases the performance of the car and risk of accidents are material changes in terms of auto insurance. They are not something that is up to you to let the insurer or not. You really should not hold back material information.

If your car can now go a lot faster and cause a lot more damage to other vehicles in accidents are factors that possibly require higher premium.  For example, installing a ram guard or replacing the engine with higher capacity one is some of those important works. Most alterations will not cause any problem and your policy will include them. So, just take the time to discuss with the insurance company.