It may surprise you to hear that your car insurance coverage likely covers your custom equipment and parts. Your selected auto insurance policy may include comprehensive and collision coverage to safeguard your car’s parts and equipment. Getting specialized parts and equipment coverage for your new equipment could be essential when updating auto parts.
Generally, upgrading motor parts might not be covered by your auto insurance coverage. Your auto insurance policy does not cover new items or equipment that are added to your car after you have already bought it. Moreover, obtaining custom insurance is crucial after upgrading your car’s parts or equipment to ensure the protection of your new parts.
What is Custom Parts and Equipment Coverage?
Modified auto insurance, sometimes referred to as custom parts and equipment coverage (CPE), covers the installation of extra components that change the look or functionality of the vehicle. This type of coverage does not include parts installed by the manufacturer of the car. Some features like custom paint jobs, aftermarket window tinting, or a wheelchair lift are also covered under this coverage.
What does Custom Parts and Equipment Coverage do?
Custom parts and equipment insurance is an add-on to your car insurance policy that covers the permanent installment of upgraded parts and equipment other than the ones installed by the manufacturer. Through this add-on to your comprehensive and collision coverage, every part of your vehicle will be covered if ever you make any changes. Custom parts and equipment insurance may not cover certain vehicle upgrades.
Does my car insurance cover my car parts and equipment?
If you get collision and comprehensive coverage, only a limited number of custom parts and equipment will be covered automatically. To extend your insurance beyond the limited amount, you may need to consider obtaining custom parts and equipment insurance. Custom equipment and part insurance is not a separate purchase; rather, it is an addition to comprehensive and collision auto insurance. State-by-state variations exist in comprehensive and collision coverage limitations; speak with an agent about your policy to learn more.
Common Custom Parts and Equipment Coverage
These parts include:
- Custom paint job.
- Anti-roll bars.
- Leather seat covers.
- Bed liners.
- Custom tires or rims.
- Navigation systems.
- Trailer hitches.
- Wheelchair lifts or disability equipment.
- Added Chrome.
- Custom lights.
What is not covered under my custom parts and equipment coverage?
The CPE auto insurance coverage covers parts and equipment but excludes some parts. These parts include:
- Parts that cost over $20,000.
- Snow plowing equipment.
- Kits higher than 4 inches or homemade adjusted suspension equipment.
Custom part and equipment insurance excludes these parts, but state limits may vary, so contact an agent to determine your specific state’s coverage.
Do Car Upgrades Affect My Car Insurance?
Depending on what type of upgrade you make on your car, upgrading your car may have effects on your car insurance. Upgrading your car with some parts may cause your insurer to consider you a high risk. Aside from this, some upgrades on your car may lessen your rates and create opportunities for you to qualify for some car insurance discounts, such as the safe-car discount. Updated cars with special equipment and component coverage, such as anti-theft systems, rearview cameras, and daytime running lamps, may qualify for additional discounts on your auto insurance policy.
Is Custom Parts and Equipment Coverage Compulsory?
insurance for custom parts and equipment is an optional addition to your auto insurance policy; it is not required. It is not a required coverage; however, it is advisable to get it to cover your parts and equipment in times of theft or damage.
What Happens if I Don’t Have Custom Parts and Equipment Coverage?
Your motor insurance will not cover stolen or damaged custom equipment or parts. Custom parts and equipment coverage covers the cost and repairs of such products, whilst personal coverage covers the replacement or replacement of such goods. A minimum of $1,000 in coverage for bespoke parts and equipment is provided, depending on the state.
