Your auto insurance policy only covers your car as long as you use the car in its original state. You might jeopardize your coverage if you modify your car too heavily. Below is an overview of why modifications pose problems for insurers and what you can do if you want to operate a modified car.
Modifying a car may create a number of problems, but these two are the ones your auto insurance carrier is most likely to worry about.
Some modifications increase the risk of an accident or the risk of extensive injuries and damages in case of an accident. Such modifications increase the risk your car poses to your insurance carrier. Since risk is the primary determinant of auto insurance premiums, the increased risk means your auto insurance company cannot continue providing you with coverage based on your initial rates (before you modified the car). Modifications that make the car more dangerous include modifications that raise the car, boost engine power, and those that change the type of fuel.
Some modifications increase the value of a car or make a car more difficult and expensive to repair. For example, a car with a modified engine may be more expensive to repair than a car with a stock engine. Another example is a car modified with gold-plated rims, which are more expensive than standard rims. Your insurer would have to cater for these costs if your car was damaged or written off. Unfortunately, your initial premiums did not take into account the increased costs.
The above issues don't mean that you can't insure a modified car. However, there are a few things you may have to do to ensure continued coverage.
Almost all insurance companies require you to notify them if you want to modify your car. This is especially true of modifications that are more than cosmetic. The insurance company will clarify whether your policy will cover the modification, and if not, what you need to do to continue enjoying your coverage.
In many cases, you will need enhanced coverage for your modified car. If the modifications are particularly expensive or extensive, then your carrier may require you to buy modified car coverage, which is specifically meant for modified cars.
Consult your insurance agent for more information on modified car insurance. If you are worried about costs, then the agent can also help you identify discounts to help you lower your effective rate.
For more information about insurance, contact a company like Budget Insurance Offices Inc.
When it comes to auto insurance, finding the best coverage for your needs isn't always easy. One of the things I do when I shop for car insurance is compare rates. As a concerned consumer, I want a rate that fits my budget throughout the year. I also want coverage that offers discounts, tips, and benefits for good drivers, such as easy-to-file accident claims and car rental services. I travel a lot, so I need services that make life easier for me. If you want to learn more about auto insurance, read my blog. You'll find tips that save you time and money.