Custom Car Modifications: What You Need to Know About Insurance Costs

Everyone enjoys their car differently. Some drivers want a simple ride to get them from A to B. Others love speed, power, or turning heads on the road. If you’re someone who customizes your car to stand out, it’s important to know how those changes affect your insurance.

Aftermarket modifications—like custom rims, mufflers, sound systems, or engine upgrades—can add serious value to your vehicle. But there’s a catch: if your car is totaled or stolen, your standard auto policy may not cover the added value. Without the right coverage, you could be left paying out of pocket for the upgrades you worked hard to install.

Before you invest in modifications, make sure you understand how they impact your insurance. Here’s what every car enthusiast should know.

Why Some Car Mods Can Raise Your Insurance Rates

Standard auto insurance is built to cover the stock version of your car—the one that came from the manufacturer. Once you start adding aftermarket parts, things get more complicated. Most basic policies won’t cover those upgrades, or they may only provide limited protection.

In some cases, modifications can also increase your insurance premiums. That’s because certain upgrades raise your risk behind the wheel. For example, performance mods like turbochargers or engine swaps can make your car faster, which may increase your chances of an accident or speeding ticket.

Insurance companies assess risk when they set your rate. If your modifications make your car more powerful, more valuable, or more attractive to thieves, your premiums could rise to match that risk.

How to Insure Your Aftermarket Car Modifications

If you’ve added custom car modifications to your vehicle, you’ll want to make sure they’re properly insured. Fortunately, there are two main options to protect both your car and the modifications you’ve made.

The first option is Custom Parts and Equipment (CPE) coverage. This is an add-on to your regular auto insurance policy that specifically covers aftermarket upgrades. It’s ideal for items like upgraded rims, sound systems, or body kits. Just keep in mind that it only covers the added parts—not the full value of the modified vehicle.

The second option is an agreed value policy. With this type of coverage, you and the insurance company agree on the car’s total value—including the modifications. For example, if your car’s stock value is $10,000 but your upgrades bring it to $20,000, you can insure it for the higher amount. While you’ll pay a higher premium, you’ll have peace of mind knowing your full investment is protected.

Protect Your Custom Ride the Right Way

If you’ve put time, money, and passion into customizing your vehicle, don’t leave those upgrades unprotected. The right insurance coverage can make all the difference if something goes wrong.

At O’Quinn Insurance, we’ll help you explore your options—whether you need added coverage for custom car modifications or a full agreed value policy. Our team understands modified vehicles and can guide you toward the best protection for your investment.

Contact us today at 386-200-9534 or submit a form for a free quote to get started. Let’s make sure your car—and everything you’ve put into it—is fully covered.