Do Insurance Companies Need to Know about Car Modifications?

Many motorists are keen on making adjustments to their vehicles. It is a way of reflecting own personality on the car you own. If you made or planning them you would want to know if you should report every little modification or some things are considered not important. Also, you should check the possible affects on auto insurance rates.

Most standard policies allow up to $1,000 additional equipment in a vehicle. So, you can spend on bodywork, rims or tires a little money to improve look and feel of it. Anything above or near to this figure should be mentioned. Also, anything that would result in enhancing the performance of the vehicle should be discussed with them regardless of the cost and type.

For example, raising the capacity or horsepower with a new type of engine increases the risks of accidents 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 it can go faster and take up speed quicker now that heightens the chances of accidents.

Generally, modifications on insured automobiles are dealt with a rider on the schedule. This is an endorsement added to the policy wordings that describes the current state of it. This confirms that they have taken a note and you can make a claim for custom work if something happens to the auto.

Also, these alterations can influence car insurance premiums a bit depending on their nature. If it were just cosmetic work they would need to take the costs in to account because they would have to pay for it if the vehicle is totaled or needs repairs. If it is more mechanical and related to performance or moving parts like wheel bases they would probably want the documentation of the work and ensure that it is done by a competent mechanic because they don’t want to be covering a vehicle that isn’t road safe. Also, they would want to check that these modifications wouldn’t increase the likelihood of crashes. So, the additional premium can be negligible or a bit hefty depending on the details.

Actually, you should let the vehicle insurance company know of any changes in your life. Moving home, having a new driver in the family, traveling less or more and any traffic violation ticket you receive are some of the things companies would want to know. It is the responsibility of the policyholder to ensure particulars are up to date.