The Modified Car Gap

Many Owners are Under-Insured and Don’t Know It.

By default, auto insurance isn’t designed to cover custom parts and enhancements to your vehicle. If you’re an auto enthusiast, or just like to tinker and personalize your car, it’s important to understand what to expect if you have a claim. You don’t want to end up like Jamie.

Jamie saved and searched for months, and finally found his dream vehicle: a fully loaded, black Lincoln Navigator. His first order of business was to head to the tire shop and get some new wheels and tires put on his ride. $1,800 later, Jamie was turning heads on the sidewalk with his custom 22” wheels. He’d never been more proud to own anything in his life and always kept the Navigator spotless, paying special attention to wheels. He’d polish them until they sparkled.

It was only a couple of months later that Jamie rolled the vehicle trying to avoid a stray cat who’d run into the road. Luckily, Jamie had full coverage on his Navigator, so it was promptly declared a total loss and a check was issued. It was only then that he realized his standard auto policy had no coverage for custom equipment, meaning he didn’t get reimbursed for his $1,800 wheels and tires. The claims adjuster explained that his policy only covers up to the value of standard equipment, so his check was only enough to get a standard, stock Navigator.

Had he talked to his insurance adviser and explained he was adding these custom parts, he could have gotten coverage and not been stuck with a $1,800 loss. Not all insurance carriers offer coverage for custom parts & equipment, so it’s important to let your insurance adviser know right away that you need this valuable coverage.

*The above content is for informational purposes only. Every insurance policy is unique. You should always talk to an independent insurance adviser before making any changes to your insurance plan.