Many people opt to add custom features to their vehicles to express their creativity. However, adding those modifications will likely alter your auto insurance policy. Here's a look at how modifications impact car insurance.
You have the freedom to personalize your vehicle to align with your style. While feeling comfortable in your ride is important, you also must protect your investment by purchasing the right auto insurance. Learning how modifications may impact your auto insurance policy can help you make better decisions.
Your insurer will check your VIN to assess the power of your vehicle and the likelihood of it being stolen or vandalized. Your insurer will set the risk level. When you make any changes to the model, you alter your vehicle's calculations. For Instance, if you add a feature that makes your car more appealing to criminals and it got stolen, your insurer may not cover you if they were unaware of the vehicle changes. Informing your insurer that you plan to modify your vehicle can prevent a claim from being denied in the future. Once they update your rates, you can shop around to see if the plan still aligns with your finances or you need to switch plans.
Small modifications may not impact your premium. Your insurer will assess the potential risks of the modifications. A new paint job may not alter your premium because it doesn't increase the chances of being involved in an accident. Common changes that can alter your policy include alloy wheels and tinted windows. You may have to shop around to find a better rate based on your customization.
The value of your vehicle also plays a factor in your auto insurance rates. If your car has a high value, you will likely have to pay more because of the potential payout if your vehicle is totaled. Car modifications are generally expensive, and they add value to your car. Pay attention to the additional charges to your policy.
The modification that alters your vehicle performance will cause your premium to rise. Enhancing your engine can substantially alter your auto insurance rates. Enhancing your engine allows you to drive faster. However, the bodyweight of your vehicle may not be equipped to handle those top speeds. Your premium will rise because you are potentially a high-risk driver.
Some modifications may alter your premium positively. If you are adding enhanced safety features to your vehicle, that should lower your premiums. Common modifications that could decrease the chances of an accident are parking sensors, backup cameras, and improved braking systems. An improved car alarm is another addition that can help reduce the chances of you being involved in an accident. As a result, you may qualify for a safety discount, lowering your premium.
Unique modifications may make it difficult to insure your vehicle. If the value rises too high, you can add supplemental coverage to protect the enhancements fully. In rare cases, adding modifications could result in your policy being canceled. Some insurers offer policies specifically designed to cover modified vehicles.
Consult with Jack Stone Insurance Agency
Before making any changes, speak with your insurer about your modifications' effects on car insurance. Communication is key. If you have any questions, contact our team at Jack Stone Insurance Agency, and we will help you protect your asset.
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