Modifying, Restoring, and Car Insurance

 

Car customization is a popular pastime. Many people buy aftermarket parts and add-ons to enhance their vehicles to cater to their sense of style or to address their needs. However, when insurance companies assign pricing models to certain brands and types of cars, they base these on the features and equipment that the factory puts on the car. All equipment that you or others have added to the vehicle after it rolled off the lot is not insured. The same principle can apply to classic or antique cars you restore – your level of insurance may only reflect the condition of the car in its previous state, instead of its newly restored state. Before restoring or modifying your vehicle, you should take these steps

Know if modification is covered – As previously stated, most insurance companies do not cover aftermarket add-ons to a vehicle. Contact your insurance company and ask about their policy regarding vehicle modifications. Not only is this a great opportunity to learn about your coverage, but you may be able to purchase new coverage that is right for you and your modified car.

Have your vehicle appraised – This is an important step when restoring your classic car. An independent appraisal company can get comparable pricing for the restored vehicle, which will be important information for getting the right level of insurance.

Take pictures – Before and after photos for your insurance company are helpful collateral when adjusting your level of coverage for modifications and restorations.  

Itemize work done on the vehicle – This is yet another important step of modifying or restoring a vehicle. A detailed record of all the work performed on your car will help your insurance company accurately substantiate the car’s new value, ensuring you get sufficient coverage.

It may be prudent to insure this vehicle separately with a carrier specializing in classic and collectible automobiles. . If you have questions about this coverage, contact your AIS representative.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.