Insurance for Customized Vehicles – Part 2
Last week I discussed how exterior modifications to your vehicle are covered by your auto insurance policy. But what about interior modifications? What if you switch out your radio/cd player for a superior model? Or, if you add a dvd player with several screens throughout your car? What about boom boxes and amplifiers? And how about those GPS units that attach to your dash or windshield?
The standard auto policy covers electronic equipment that is installed where the equipment is intended for such equipment. This means that electronic equipment that is permanently installed in a location not intended for such equipment is not covered. To clarify using the above examples, the upgraded radio/cd would be covered if it was installed where the original radio was located. But all the other examples would not be covered. To further clarify, the dvd and screens would be covered if they came with the vehicle. But they would not be covered if they were installed after you purchased the vehicle because they would be installed in a location where they were not intended to be located.
Similar to exterior modifications, you can purchase additional insurance to cover electronic equipment that is not covered by the standard policy.
Insurance for Customized Vehicles
So, you want to trick out your new ride. Maybe add a new set of shiny rims and tires. And a spoiler would look nice. How about lowering the vehicle a couple of inches? When you’re all done, you’ve spent hundreds if not thousands of dollars for your customization.
But what happens if your new add-ons are damaged or stolen? Will you auto insurance policy cover the loss?
If you have a standard auto insurance policy, the answer would be “no.” The standard auto insurance policy does not cover any modifications to your vehicle. However, most insurance companies can cover your customized vehicle with special endorsements to your policy (you’ll have to pay a little more premium for this coverage).
If you have modified your vehicle and would like to make sure your insurance policy covers the customization, check with your insurance agent.
Is Your Car Covered for Tsunami Losses?
You may be surprised that the answer is “yes!” Although most propety insurance policies exclude flood losses (a tsunami would be classified as a flood loss), auto insurance policies do not have a flood exclusion. So, if a tsunami damaged your car, your auto insurance would cover the damages. You would have to carry the comprehensive (also known as “other than collision” ) coverage for the damages to be covered.
