The current hype for custom shop vehicles heavily promoted by dozens of TV shows and thousands of professionals all around the country has made a lot of people think that their generic cars can be used as a means to reflect their individuality and lifestyle. For some people it’s just a matter of body color or custom paint job but for others only radical customization is the right solution. There’s plenty of room to make your car look unique and the only limit is your imagination and your wallet, of course. Yet, not many people realize that by taking their car to a customization service they also need to customize their insurance policies. Why? Because without doing so you risk being rejected once you file a claim after customization.
When you insure a vehicle with an insurance company you sign a contract for a particular object with particular features. These features are uniform across the same car make and model, and usually varies through minor features that are usually mentioned additionally. And when you file a claim the insurance company covers your repair costs so that you could replace the manufacturer installed parts according to their current market price. And guess what happens when you replace the default parts with custom ones, which often cost more? The company can actually refuse to cover the claim because you’ve introduced modifications to your vehicle that could change its driving characteristics and alter the risk posed to the insurance company. So, as a result you can be left with a broken car that you will have to repair out of own pocket and which will cost you more to repair because of the custom parts. So how do you avoid such an unpleasant situation and keep your the cheapest car insurance relevant and valid?
It’s really simple. All you have to do in terms of car insurance is to inform your insurer about the customization right after performing it. Your insurance company representative then will evaluate the modification and decide whether you can keep the current policy intact or have to buy additional weavers in order to cover all the custom parts. Usually, if your customization only concerns the exterior such as a paint job then you are likely to keep your current policy. But if you install a powerful stereo system or tweak your engine for additional HP then get ready cash in for keeping your car insurance relevant. That’s because you alter the characteristics of your car and add to its actual value that should be covered.
So as you see there’s no problem with vehicle customization form the insurance point of view if you do your paperwork on time. Just keep your insurance company informed about all the modifications and you can rest assured that the policy will pay out when you file a claim. Yet, if you tend to think that the coverage will be altered automatically and you don’t have to tell anyone about your visit to the custom shop then you’re in for a rather unpleasant surprise once you file a claim.