How Vehicle Modifications Affect Insurance
Friday, August 10, 2012
Most auto insurance policies insure for collision and comprehensive coverage. Insurance policies exist on factory built vehicles. If you happen to change your vehicle from the specifications from the factory, this may affect your insurance. It is imperative that you speak with an agent from your insurance provider to make sure that your vehicle insurance will remain intact with modifications, or find out how much it might be to cover the modifications that you have made to your vehicle.
Some vehicle owners like to modify their vehicles. Some modifications might include:
- Tinted windows
- Advanced stereo system
- Alloy wheels
- Larger transmission (for more power)
- Paint modifications
- Raised suspensions
- Larger tires
These modifications may produce a vehicle that looks good, sounds good, and performs better, however, before making any modifications to a vehicle, owners should understand that this may increase their insurance premium, or in the worst case, it may make their pre-existing insurance policy void.
Insurance companies insure vehicles on several factors, but an insurance friendly vehicle is one built by a factory and has been factory tested for safety and accident prevention. If a vehicle is modified, the insurance company will need to ensure that the vehicle does not increase its risk for an accident, or increase its value. If the vehicle increases in value, this may make it more susceptible to theft.
It is imperative that you disclose any modifications to your vehicle to your insurance provider. Modifications may leave you uninsured, so before you make your vehicle perform, look or sound better, contact your insurance provider to ensure that your vehicle will still be insured.