Think about insurance before you pimp your ride

For some, installing aftermarket upgrades and customizing every aspect of their car is a lifestyle. Unfortunately, you need to think about your insurance policy before you add anything not made by your manufacturer.

Of the factors that impact your auto insurance rate, the majority of them are based on driving history. Where you live also has a huge impact on rates, with just a few blocks sometimes making a difference of hundreds of dollars. However, the other big factor is the car itself. Considering it’s the thing you’re insuring, it should come as no surprise that insurance underwriters take it into account when drafting policies.

While insuring a stock car is pretty simple, adding custom or aftermarket parts changes things — the insurer now has to be responsible for covering that part should you get into a collision or if it’s stolen. Some modifications also drastically change the performance of the car, which insurers take into consideration.

So before you call up Xzibit and ask him to pimp your ride, we talked to some real life insurance brokers to get the lowdown on insuring rides with aftermarket upgrades.

They won’t cover vehicles with performance upgrades

While we can’t speak for the entire insurance industry, it seems that many insurers won’t cover vehicles that enhance a car’s performance. It raises red flags for insurers who question why someone would feel the need to modify their car in this way unless they intend to drive dangerously.

As for what constitutes a performance enhancement? It’s pretty broad. Obviously, engine enhancements that result in higher horsepower or top speed fall into the category of performance upgrades. However, you may not immediately guess that upgraded suspension or brakes can also fall into this category.

Aesthetic improvements might not be covered

Car policies have coverage limits and even if you extend that coverage for custom parts, you may not be able to cover the full value of those upgrades, depending on what work you had done. These aesthetic improvements can include a snazzy paint job, big speakers, or even more outrageous custom additions like those seen on Pimp My Ride.

If an insurer covers the aftermarket part(s), they’ll appraise the value of the part(s) and adjust your coverage accordingly. This usually won’t be cheap though. The brokers we spoke to also expressed that companies would require regular appraisals (every year or two) to reassess the value of each part and your entire car.

Participate in car shows? You can get special coverage

Many people take part in car shows that show off the best custom cars in the world. Because these cars aren’t being driven on the streets, some insurers such as Hagerty Insurance will approve coverage on a limited km basis. So you can insure those custom-made rims that took you years to get built!

Not declaring modifications gives companies grounds to void your coverage

Some people don’t realize they should inform their insurance company of any changes they make to their car. Or they think not disclosing can mean avoiding a higher premium. DON’T DO THIS. An insurance company won’t take pity on you when you get into a collision and ask them to pay for repairs. Even if they end up voiding your coverage because of modifications, it’s better to know that your protection is gone than to be surprised when you make a claim.

Moral of the story? Pimp your ride to your heart’s desire, just don’t expect your insurance company to pimp your coverage.