The assembly line allows car manufacturers to be very efficient, rolling new cars out of the factory at an incredible pace. This level of efficiency does not allow for much customization for the average driver, though. If you want your vehicle to stand out from the pack, you might consider custom equipment or modifications.
Before you visit that shop or turn that wrench, make sure you understand how your insurance policy handles nonfactory additions, especially considering that the cost for these upgrades has risen in recent years.
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Existing Coverage Limits
Many standard auto insurance policies include a predetermined baseline coverage amount for custom equipment. At Indiana Farm Bureau Insurance, that limit is $1,500, and additional coverage can be purchased as needed. But if you invest $3,000 in a set of custom rims or a vehicle wrap, it’s important to inform your insurance agent. If you don’t increase your coverage limit accordingly and experience a loss, you may find yourself significantly underinsured.
Some of the most common examples of customization we see include new wheels and rims, vehicle wraps and custom paint, lift kits and suspension modifications, roof racks and cargo systems, and window tinting. There are others, so be sure to connect with your agent if you start customizing anything on your car.
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Excess Custom Equipment Coverage
If you have custom equipment or are planning custom equipment purchases for your vehicle, your IFBI agent can help you obtain additional coverage. IFBI policyholders can increase custom equipment coverage up to a limit of $10,000. A discussion with your agent will help you determine how much excess custom equipment coverage you may need and how that will impact your premium.
It’s important to note that you must have custom equipment installed or purchased for installation to increase your limits. This additional coverage can’t be added “just in case” you decide to modify your vehicle later.
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Standard Limit Coverage
Not everyone wants to customize their vehicle. The standard limit provides a reasonable amount of coverage for many low-end customizations while not making all policyholders pay for insurance they may not need. This helps keep costs down for all policyholders while giving those interested in custom equipment the option to increase limits.
Custom Equipment on Purchased Car
If you purchase a vehicle that already has some custom equipment, be sure to notify your agent when you add the vehicle. It’s better to bring it up at that moment so you can understand your options.
Remember, the cost of equipment has increased in recent years. Make sure you know what you have and that it’s covered.
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