I bet you didn’t know your car insurance policy covered your custom parts and equipment. Depending on the car insurance policy you get, comprehensive and collision coverage is added to your insurance coverage to cover your car parts and equipment. If you ever upgrade your car parts, you may need to get custom parts and equipment coverage for your new parts and equipment.
When you upgrade your car parts, the new parts may not be covered under your car insurance policy. Your car insurance policy does not cover new parts or equipment on your car after your car insurance has expired. After upgrading your car parts or equipment, you will need to get custom part and equipment coverage to cover your new parts.
What is Custom Parts and Equipment Coverage?
Custom parts and equipment coverage (CPE), also known as modified car insurance, refers to enhancements or additional parts permanently or temporarily installed that change the appearance or performance of the vehicle. This type of coverage does not include parts installed by the manufacturer of the car. Some features, like custom paint jobs, aftermarket window tinting, or a wheelchair lift, are also covered under this coverage.
What Does Custom Parts and Equipment Coverage do?
Custom parts and equipment coverage is an add-on to your car insurance policy that covers the permanent installment of upgraded parts and equipment other than the ones installed by the manufacturer. Through this add-on to your comprehensive and collision coverage, every part of your vehicle will be covered if you ever make any changes. However, some upgrades on your vehicle may not be covered under the coverage.
Does my Car Insurance Cover my Car Parts and Equipment?
If you get collision and comprehensive coverage, only a limited number of custom parts and equipment will be covered automatically. To get coverage beyond the limited amount, you may need to get custom parts and equipment coverage.
This coverage cannot be purchased alone; instead, it is an add-on to your comprehensive and collegial car insurance coverage. The limits on your comprehensive and collision coverage vary by state. To know the limits, you need to contact an agent concerning your policy.
Common Custom Parts and Equipment Coverage
Meanwhile, under your CPE coverage, there’s a list of custom parts and equipment your insurance covers. These parts include:
- Custom paint job.
- Anti-roll bars.
- Leather seat covers.
- Bed liners.
- Also, custom tires or rims.
- Navigation systems.
- Trailer hitches.
- Wheelchair lifts or disability equipment.
- Added chrome.
- Electronic equipment like a TV, custom stereo, or video system.
- Custom lights.
Under your custom parts and equipment coverage add-ons, these parts and equipment are covered.
What is not Covered?
Aside from parts and equipment covered under the CPE car insurance coverage, some parts are not covered under this car insurance coverage. These parts include:
- Parts that cost over $20,000.
- Snow plowing equipment.
- Illegal parts and equipment such as dark tinting, nitrous oxide, and underbody lighting.
- Kits higher than 4 inches or homemade-adjusted suspension equipment.
Under the customs part and equipment coverage, these parts are not covered. However, this varies by state; contact an agent to know your state limits.
Do Car Upgrades Affect my Car Insurance?
Depending on what type of upgrade you make to your car, upgrading your car may have effects on your car insurance. Upgrading your car with some parts may cause your insurer to consider you a high-risk. Aside from this, some upgrades on your car may lower your rates and create opportunities for you to qualify for some car insurance discounts, such as the safe-car discount. However, getting the coverage on your new upgraded parts like anti-theft systems, rearview cameras, and daytime running lamps helps you qualify for additional discounts on your car insurance policy.
Is Customs Parts and Equipment Coverage Compulsory?
This coverage is not an insurance policy on its own but an add-on to your car insurance policy. It is not mandatory to add CPE coverage to your car insurance policy. It is not required coverage; however, it is advisable to get insurance to cover your parts and equipment in times of theft or damage.
What happens if I don’t have custom parts and equipment coverage?
In any case, if your custom parts or equipment get stolen or damaged, your car insurance will not cover the damaged parts. You will have to personally cover the cost or replacement of your parts or equipment. However, custom parts and equipment coverage covers the replacements and repairs of your custom parts or equipment. Depending on the state, at least $1,000 of customs part and equipment coverage is given.