How to Insure Custom Parts and Equipment
Last Updated on March 15, 2022
Adding custom parts and equipment to your car helps you customize your vehicle and get it looking and running the way you want it to. Adding custom parts to your car can be very expensive, so you’ll want to protect your investment with a good insurance plan. But how do you find an insurance plan specifically for cars with custom parts?
Because custom parts are more expensive to install, maintain, and repair, you won’t be able to use a standard car insurance policy. Instead, you’ll need to choose a policy specifically for cars with custom modifications. Here’s what you should know about insurance policies for custom parts and equipment.
What type of coverage do you need for custom parts and equipment?
If you have added any custom parts or equipment to your car, you will need to find an insurer that specifically offers custom parts and equipment coverage, or CPE. Most major insurance companies offer CPE coverage, but not all do. Smaller regional insurers typically do not offer their own CPE coverage.
Keep in mind that CPE coverage does not replace other essential coverage types. Instead, it’s a supplemental form of insurance that you should have in addition to your required liability coverage. Most drivers also opt to add things like collision, comprehensive, and uninsured motorist coverage as well.
Since you’re making such a huge investment in your car by customizing it, it makes sense to seek out an insurance policy with the best possible coverage. If you’re struggling to find the right coverage for your needs, consider working with an independent insurance agent. They can help you find a policy that suits your unique needs, and they might even introduce you to insurers you haven’t heard of before.
If you already have an insurance policy for your car and you want to start customizing it, make sure to talk to your insurer before you do so. Your insurance company may already offer CPE coverage that you can add to your existing policy. However, failing to notify your insurance company of the custom changes you’ve made to your car could cause problems later on if you do need to file a claim.
What does custom parts and equipment coverage entail?
CPE coverage is designed to cover any unique individual changes that you make to your car. These parts are not created or installed by the original manufacturer. These changes can affect the way your car runs, or they can be purely cosmetic. Some popular custom car improvements include adding new tires, new sound systems, custom paint, or custom leather seats. However, CPE coverage can apply to any custom improvement you make to your vehicle.
Most insurance companies have limits when it comes to what they will and will not insure. There are certain modifications that might be unsafe to drive or put you at a higher risk for theft and vandalism. These modifications may not be covered under a CPE policy. Custom modifications that are particularly expensive may also be ruled ineligible for coverage. To prevent this from happening, it’s best to talk to your insurance company before you start making any modifications to your vehicle.
CPE coverage is an add-on, so it will cost more than your standard car insurance coverage. The cost of your CPE coverage can vary depending on the specific improvements you choose to make to your car. Someone from the insurance company may get in touch with you or even need to see the car in order to provide coverage.
Even after you get CPE coverage, it’s important to keep your car insurance company informed of any changes you make to your vehicle. This helps you avoid any confusion in the future and make sure that you have an appropriate amount of coverage for your vehicle.
What happens if you don’t get custom parts and equipment coverage?
Many people modify their cars without telling their insurance companies, thinking that it won’t be a big deal. While it can be tempting to make these changes and keep your older insurance policy, this approach can cause issues in the long run. While CPE coverage is more expensive than standard insurance coverage, it can save you money in the long run if your car is damaged.
If you modify your car without telling your insurance company and file a claim later on, your claim will likely be denied when your insurer finds out about the modifications. In addition to that, your insurance coverage could be revoked altogether. Having your insurance coverage revoked has very serious consequences. Other insurance companies can deny you coverage in the future, even if you have a strong driving record. This can make it very difficult for you to drive safely and legally.
How can I find good CPE insurance coverage?
After you’ve invested so much time and money into your car, you’ll want to make sure that you find an insurer you can trust. It’s important to get quotes from more than one insurance provider, rather than going with the first company you find. Each insurance company has its own unique methodology for determining pricing, so you might be surprised by who offers you the most affordable coverage.
You also won’t just want to go with the cheapest coverage, especially when you have a car with custom modifications. Instead, you’ll want to go with the company that can provide the best value for money. Consider what unique coverage offerings they can offer, or if they provide any discounts.
If you’re struggling to find an insurance company that has the CPE coverage you need, consider working with an independent insurance agent. These insurance agents are not contracted with any one specific company and can help you sort through all of your insurance options. They may even be able to connect you with companies that you haven’t heard of before.
CPE coverage is a must-have if you want to make modifications to your car. It ensures that you will be able to replace or repair your car in its current condition if you are involved in an accident.
