Many Americans, when buying a simple car, want to improve it, to make it more individual or to improve some of its characteristics. At the same time, not everyone knows that they will need modified car insurance.
Any changes that are made in the car, after he left the manufacturer’s factory, are subject to additional insurance coverage, whether it is a spoiler or a more powerful engine.
Additional investments of funds that you make in the modification of your car are not included in the standard car insurance. The cost of your car increases when modified, but the insurer sets a certain maximum amount of coverage. That is why you will need to get a modified car insurance and here we will tell you how to pay at least for it.
What car modifications are covered by the usual insurance?
Not all modifications require additional insurance, because some of them are considered minor and are included in the standard car insurance coverage. However, the list of such changes may vary depending on the insurer, so always check with your agent.
Most often, modifications such as Chrome exhaust systems, bike racks, leather seats or alloy wheels usually do not require special modified car insurance, as well as roof racks, Bull Bars and hatches.
But such interventions as Nitro Fuel equipped engines, turbo engines, supercharged engines, custom paint work, racing harnesses, changes to tires and rims will require additional insurance.
These lists are not complete, they may vary from different insurance companies, but the listed modifications of your car are often shared in a similar way. If you intend to make changes to your car, which are listed in the second group, then now you will probably be interested to learn how you can save on modified car insurance.
Two types of how you can get a modified car insurance
For modified cars, in addition to standard comprehensive coverage and liability insurance, additional insurance is required. If your changes cost no more than $ 4,000, then you will simply need additional insurance. This insurance will cost you about 10% of the cost of modifications to your car.
The second option of additional modified car insurance is a collectible insurance coverage. This type of insurance is usually provided by specialized companies with high expertise in the modification of cars.
Serious modifications to your car, such as changing the engine, chassis or transmission, have a rather complicated technical basis, so ordinary insurers do not make this type of insurance.
How much to insure your modified car?
Standard car insurance takes into account the market value of your car. At the same time, this cost is relevant only at a specific point in time, because cars quickly depreciate, even if they just stand in the parking lot. This state of affairs will not help you get a modified car insurance. Your expenses will not be covered by such an insurance plan.
To protect yourself from financial losses in the event of an accident with your modified car, you should initially discuss with your insurer the value of your car and its modifications. Of course, it will be quite expensive, especially if you are less than 25 years old and have had problems with accidents or fines.
How to get lower fares for young drivers
Young drivers are quite difficult to get an inexpensive insurance rate. The rates for drivers who are not yet 25 years old are high by default, as they are highly risky drivers due to lack of experience. But not everything is as bad as it may seem at first.
There are several steps to help you save. At the initial stage, the choice of the insurer and the most profitable offer will be the main thing. Do not settle for the first available offer of modified car insurance. Compare different companies and the conditions they offer.
Also, pay attention to smaller insurers who are very interested in new customers and can usually be more flexible. Large corporations are less likely to meet you.
Start learning about offers on the insurance market have in advance. Visit the shops in the area where you live, search the Internet for offers for modified car insurance, and you may find promotional offers that will help you save.
There are several options to get a discount on modified car insurance. For example, you can take emergency driving courses, reduce the use of your car, buy package insurance, or, as a last resort, increase your deductible. Each of these ways lower the insurance rate for you.
As for the insurance deductible, it is important to find a middle ground in order not to suffer financially. Too small deductible significantly increases the insurance rate for you, and too high will force you to pay most of the costs in the event of an accident from your own pocket, which can eventually result in thousands of dollars in expenses.
Let’s sum up
Modified car insurance can create difficulties for you, but this problem can be solved. You have learned that there are many ways to how you can reduce the cost of car insurance for yourself, even if you are a young driver.
The main task in this matter will be the search for the optimal proposal and balanced decisions. Do not chase after brands, it is not always justified. Choose your insurance company carefully and try to negotiate. With this approach, you can always find profitable offers, save money and improve your finances.
If you have conceived to make your car original, more powerful or beautiful, you can take a small loan using the application form on our website. Filling in all the necessary information, you will receive offers from different lenders. If you have any questions, please contact us and we will advise you.