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Everyone enjoys their cars in their own way. Some of us simply enjoy having a car that gets us from Point A to Point B. Some of us enjoy having a car that can get us there in half the time and some enjoy having a vehicle that truly is unique from any other vehicle on the road. To be unique, however, you might have to put a little extra into it, or rather, onto it. Many custom vehicles will have something added to the vehicle that doesn’t come standard. These are known as aftermarket parts and can typically include mufflers, rims, stereo systems, and engine modifications, along with other forms of aftermarket modifications. The problem with aftermarket modifications is that while they might turn your $10,000 car into a $25,000 car, your Insurance will only pay to replace that $10,000 car.
Insurance is designed to replace the stock model vehicle that you purchased. Anything that comes after that will typically either not be covered, or offer very small extra coverage for aftermarket parts. Another issue you might find is that not only will the aftermarket parts not be covered, they might cause your insurance rates to go up. We spoke in an earlier article about how an insurance company insuring you is a bit of a gamble on their part. They are investing money in your safety, believing you won’t get in an accident and cost them money. Because of this, they like to see how much of a risk you are, and the higher the risk the more it costs you to be insured. Not all aftermarket modifications will affect your insurance rates, but if you mod your stock vehicle into a speed demon, the insurance company might have reason to worry.
So what can you do to cover both your vehicle and your aftermarket parts? There are 2 options that you can pursue. One is to get separate Custom Parts and Equipment Insurance. This will only cover the aftermarket parts and you will still need your normal car insurance as well. The other option is to get an agreed value policy. An agreed value policy is a policy that will cover what you and the insurance company agree the vehicle is worth. So if you have a vehicle with aftermarket modifications that raised it fro $10,000 value to $20,000 value, you can talk to your insurance company and get it insurance for $20,000 value. The downside is that you are going to be paying for that $20,000 value insurance rate but it will have you protected, so it can be worth it in the end.
To learn more about protecting your vehicle with aftermarket modifications, contact O’Quinn Insurance Services. We can answer your questions, and find you an insurance coverage plan that will help with protecting aftermarket car parts