Do Insurance Companies Need to Know about Car Modifications?

Many people are keen on making adjustments to their vehicles. It is a way of reflecting your own personality on the car you own. If you made or planing to make these changes you would want to know the answers to these questions. Do insurance companies need to know every little changes or modifications made on insured cars? What should be reported and what is considered not important?

Most standard policies allow up to $1,000 additional equipment in a vehicle. So, you can spend on body work, rims or tires a little money to improve look and feel of your automobile. Anything above or near to this figure should be mentioned. Also, any changes made to enhance the performance of the vehicle should be mentioned regardless of what happened and how much it costed.

For example, increasing the engine capacity or horse power with a new type of engine increases the risk and should be mentioned. It does not matter that your old engine packed up and that is why you made the decision. The point is that your car can go faster and take up speed quicker with the new engine that increases the chances of accidents.

Generally, modifications made on insured automobiles are dealt with a rider on the policy. This is an endorsement added to the policy wordings that describes the modifications made. If you informed your insurer of the changes you should look for this endorsement on your policy. This confirms that they have taken a note of the alterations and you can make a claim for custom work if something happens to your auto.

Actually, you should let your insurer know of any changes in your life. Change of address, having a new driver in the family, driving less or more and any traffic violation ticket you receive are some of the things companies would want to know. It is up to you to keep your particulars up to date with your provider.

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