Nobody wants to get into a car accident, but it happens. You’ve been paying those modified car insurance premiums for a reason, so now what happens if you’ve crashed your modified car? Initially, the insurance process is the same as it would be for a standard model car.
Vehicle damage is assessed, and the cost to repair your car is estimated, and compared to the estimated value of your car. In other words, the insurance company compares the repair cost against buying the same vehicle outright. If the repair cost is greater than your car’s value, or if it cannot be repaired, your car will be “written off,” and the insurance company will offer to pay you their estimate of your car’s value.
And that’s where it gets tricky for modified cars. Many modifications can be expensive to install without raising the value of your car. Take an expensive stereo system: You could install a $3,000 stereo in a $3,500 car, but it won’t raise your car’s value to $6,500. This is where the little details of what is and isn’t covered by your car insurance become all important, and you may wish you’d paid more attention when you picked out that policy. Of course, hindsight is always 20/20, so let’s take a look at some of the things you should know before you get into an accident and find your insurance money coming up short.
What to Know Before an Accident
After an accident, your insurance company will estimate your car’s replacement value by coming up with an average resale value for cars similar to yours. This value almost always seems low, especially for modified cars. If you want to successfully contend their estimate, you need to do your own research, looking up recent selling costs of cars similar to yours in model, year, mileage, options, and aftermarket modifications. If you can find similar cars that are selling for a relatively high price but are in worse condition, with more mileage or less options, it will make it harder for your insurance company to low-ball your value.
Keep comprehensive records, receipts, pictures, or even video, of the modifications you’ve made to your car. The more proof you can bring to the table, the more power you have when negotiating replacement value.
Make sure you know what your modified car insurance does and doesn’t cover. If you are not happy with your coverage, discuss changing your policy or finding a new company. It’s also a good idea to discuss any new modifications you’re thinking of adding before you do the work, so you’ll know exactly how they’ll affect your policy up-front.
Always disclose all modifications. The worst thing you can do to yourself is hide modifications to keep your premiums low. It’s not just that they won’t be covered; even minor modifications can void your policy if they are not disclosed, and you could end up with NO insurance money.
Getting modified car insurance that really works when you need it to be impossible. But you’ll have to stay informed, and be aware of what you’re agreeing to. One of the best things you can do is keep in touch with other people who have or deal with Modified Cars. Join a group, or tag a comprehensive mod site like torquecars.com, where you can catch the latest news, events, and forums on modified cars, and most importantly, have a ready support group when you need it.
The best way to get a good rate is to be informed. Talk to other people with Modified Cars, and stay up to date with mod sites like torquecars.com, where you can catch the latest news, events, and forums on modified cars.