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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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We all like to customize our cars to make them our own, but you might not realize that a standard auto insurance policy won’t cover most vehicle modifications and upgrades. Modifications can include anything from upgrading your rims or adding performance parts to common additions like bed liners or truck caps.
You may need modified-auto insurance to cover your vehicle’s total value, including any modifications and enhancements you’ve made. This specialty coverage pays for the higher cost of repairing or replacing your custom parts in case of an accident or total loss.
We’ll cover everything you need to know about modified-car insurance in the sections below.
Standard car insurance policies usually don’t cover vehicle modifications and custom parts unless you add specialty coverage.
Insuring a modified car on a standard insurance policy without notifying the insurance company could mean you’ll pay out of pocket to repair or replace any custom parts.
Some insurers — like Farmers, Progressive, PEMCO, and Hagerty — offer special coverage for modified cars or even spare parts.
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If you get into an accident or need to file a claim for a modified car under a standard car insurance policy, the insurance company may not cover the modifications. A modification is anything you’ve done to enhance or alter the vehicle after it leaves the factory, such as tinting the windows or adding custom rims.
When you add your new car to your insurance policy, it’s a good idea to ask your insurer if vehicle modifications are covered. Some insurance companies will cover up to a certain amount or specific modifications, while others may not unless you add custom parts coverage. If you want the modifications covered, your insurer will likely want receipts to prove the value and pictures as proof you modified the insured vehicle.
Yes, you can insure a modified car, but not all auto insurance companies will cover the modifications. A standard auto insurance policy covers stock vehicles that are unaltered from factory specifications. A modified vehicle is changed to improve its appearance or performance, like replacing the stock bumpers with chrome bumpers.
Unless your policy explicitly covers the modification, your insurer may only cover the value of the original bumpers if the new bumpers get damaged in an accident, even if the new ones are worth more.
If you want your custom modifications and aftermarket parts covered, you may need special coverage to insure them on a standard auto policy. This coverage is often called custom parts and equipment coverage. You can add specific modifications under this optional coverage up to a certain dollar amount — which varies by insurer — to help pay for repairs or replacement if they’re damaged.
If you have a highly customized vehicle or high-value parts, an agreed-value policy may be cheaper and more beneficial. These policies are typically available through specialty insurers, like Hagerty and Grundy.
You and the insurance company will decide on the value of the modified vehicle and insure it for that value. You can usually also add special coverages, like spare parts and automotive tools coverage, for extra peace of mind.
Not all car modifications qualify for insurance coverage, even if you have a modification or custom parts endorsement. Examples include:
Custom parts over a certain dollar amount (varies by insurance company)
Snow plows or other equipment used for work purposes
Suspension kits, including homemade kits greater than four inches
Underbody lighting, nitrous oxide tanks, dark window tint, and other illegal modifications
Modifying your vehicle could increase your car insurance rates, especially if the modifications increase the value of your vehicle. The more it costs to repair or replace your car, the higher your insurance premiums can be. Before modifying your vehicle, ask your insurance agent how the changes could affect your insurance costs.
In some cases, modifying your car could lower your rates. For example, if you add security features like an alarm or security system, front or rear cameras, or daytime running lights, you could qualify for an insurance discount.
If you buy a used car that’s already been modified, consider having it inspected by a mechanic before finalizing the purchase. Verify which alterations and modified parts it has so you can notify the insurance company when getting a quote. The vehicle’s value is a factor insurance companies use to determine the cost of insurance.
Depending on the insurer, you may need to provide pictures or other proof of modifications to get coverage.
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The national average car insurance cost is $129 per month for all drivers and vehicles, according to our analysis. But getting coverage for modified or custom cars can change how much you pay for auto insurance.
For example, PEMCO offers up to $500 in custom parts and equipment coverage, but you can pay extra if you need more. Hagerty is similar — if you purchase modified car insurance with spare parts coverage, you get $750 towards spare parts. If you want additional coverage, it starts at $1 more per month.
Besides the standard factors used to determine all car insurance rates — like age and driving record — other factors can affect modified insurance premiums. These include:
The vehicle’s value
Specialty coverages, such as spare parts or custom parts and equipment
Potential collision and comprehensive coverage requirements
How much extra coverage you need to cover customizations
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There isn’t just one best car insurance company for all drivers and vehicles, which is why we provide a list of several insurers to consider. Take a look at the list below to see which insurer might offer the right coverage for your customized car.
We compared coverage options, prices, customer ratings, and discounts to help you find the best modified-car insurance policy.
Average premium: $154 per month
Compare.com Rating: 4.1 out of 5
Trustpilot rating: 1.4 out of 5
BBB rating: A+
Wide network of local agents
Custom coverage for aftermarket parts
Plenty of available discounts
Higher-than-average rates
Comprehensive and collision coverage required for modified-vehicle policies
Below-average customer service ratings
Farmers offers highly customizable car insurance policies with a wide range of discounts to help lower premiums. Besides custom parts coverage to insure your modified vehicle, you can also purchase guaranteed-value coverage, which provides an agreed-upon value if your vehicle gets totaled. Car enthusiasts who add aftermarket parts, like a body kit, tires, or alloy wheels, should take a closer look at Farmers car insurance coverage.
Average premium: $109 per month
Compare.com Rating: 4.2 out of 5
Trustpilot rating: 1.1 out of 5
BBB rating: B
Below-average premiums
Special coverage for custom parts
24/7 claims and customer support
$5,000 custom parts limit
Below-average customer service ratings
Inconsistent claim timelines
Progressive auto insurance is available nationwide, making it easy for modified-car owners in all 50 states and Washington, D.C., to get a car insurance quote. Progressive’s optional custom parts and equipment value (CPE) coverage includes up to $5,000 for your vehicle modifications, from custom paint to a new sound system. You can also add other specialty coverages, like pet injury and trip interruption coverage.
Average premium: $58 per month
Compare.com Rating: Not rated
Trustpilot rating: 2.9 out of 5
BBB rating: A+
Extra custom parts coverage available
Below-average premiums
Other optional coverages available
Only available to Washington residents
Few discounts available
Must pay extra for more than $500 in coverage
Washington residents may want to consider PEMCO to insure their modified cars, as it boasts below-average premiums compared to some of the top car insurance companies. Besides the standard coverages, you can also include electronic key replacement or recoding coverage, as well as coverage for your camper, canopy, or tonneau cover. Though its custom parts and equipment coverage base is only $500, you can purchase more to cover all your vehicle customizations.
Average premium: Not available
Compare.com rating: Not rated
Trustpilot Rating: 4.1 out of 5
BBB rating: A+
Above-average customer service ratings
Specializes in modified, custom, and classic cars
Spare parts coverage included in base price
Must meet eligibility criteria
Few local agents
Average rates not available
Hagerty is a specialty insurer that offers coverage only for resto-mods, hot rods, street rods, pro-street, custom vehicles, and classic cars. Its base policy includes $750 in spare parts coverage, though you can buy more if needed. You can also purchase coverage for tools and automobilia. Hagerty provides an agreed-value policy with the option to retain salvage if you still want to keep your car after it’s totaled.
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We answered some common questions about modified-car insurance to help you understand how it works.
It depends. Some insurance companies cover modified vehicles, but there may be limits on how much they will cover and what modifications qualify. Expect to provide pictures and receipts for proof of modification value to insure the parts. Some insurers may even request an in-person inspection before insuring the car.
Yes, you should tell your insurance company about modifications if you want them covered. A standard car insurance policy usually won’t cover them without custom parts coverage. Having the right coverage ensures you’re adequately protected and won’t be stuck with out-of-pocket repair or replacement costs.
It depends. Modified cars can have higher insurance rates if the cost to repair or replace the custom parts is more expensive than the original equipment manufacturer (OEM) parts. However, some modifications qualify as safety features, such as adaptive headlights or backup cameras, and could cause your rates to go down.
No, a standard car insurance policy doesn’t cover an aftermarket suspension. The best way to get your aftermarket parts insured is to speak with your insurance company to find out about getting coverage and how it will affect your insurance premiums.
Methodology:
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.
Sources:
Insurance Information Institute, “What determines the price of an auto insurance policy?,” accessed January 30, 2024.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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