Car enthusiasts put a lot of blood, sweat and tears into their cars, but they also put in a lot of money in upgraded parts to their car. If you are in a car accident, can you recover monetarily to replace these upgrades?
What about items that are left in your car that are also damaged? Can personal property items be part of your insurance claim, as well?
We have asked attorney Alaina Sullivan about claiming damages for aftermarket modifications and parts. Here is what she had to say:
What Is a Car Modification?
Any change that you have made to your car that makes it different from the original factory specification, as made by the manufacturer, is considered a car modification. A modification can include a change that enhances the car’s performance but can also be cosmetic in purpose only.
Regardless, most car modifications not only change the car’s value but your insurance policy coverage, as well.
Personal Property Not Covered
Your car insurance policy covers your car, not personal items in your car. So if you have items of value, such as a laptop or upgraded car stereo, your car insurance may not reimburse you for the loss of your personal property items. You are not completely out of luck, however.
You can make a claim on your home owner’s insurance policy for some personal property items. If you had something your car that was of particularly high value, you may want to have added a rider policy to your home owner’s insurance policy.
This rider would cover you for the full value of your personal property item.
Why Do Modifications Change Your Car Insurance?
The obvious reason car modifications change your car insurance is they change the value of your car. Car insurance normally provides you the replacement value of your car in the event your vehicle is totaled.
This value is based on market value with the car being in the condition that it normally would, not including modifications you made to increase the value.
Therefore, you are only going to get the value of the car in the state it was in before you put all of that extra work and money into it.
However, any insurance policy is based on risk. Insurance providers consider a number of risk factors when determining an insurance policy on your car, and modifications can affect that risk.
If your modifications increase performance of the car, it can be seen as increasing the risk of an accident. Similarly, many modifications, such as installation of souped-up stereo equipment can also be seen as increasing the risk of theft.
Any increase in these risk factors will likely result in increased insurance premiums or even a change in the way an insurance provider views your vehicle.
However, if you are inclined to modify your own car and have the ability to repair it yourself, you may be able to be reimbursed for repairs you make to your car.
What Modifications Affect My Insurance?
Not all car modifications affect your coverage. This brings the question: what changes affect your coverage? These modifications include custom parts or equipment being added to the car, such as front or rear spoilers, chrome wheels, racing tires, chrome bumpers, hood ornaments, custom paint jobs and custom doors. Stereo equipment can be included as well.
If you have made significant changes to your car, you will want to make sure you are covered. Most comprehensive car insurance policies will allow you to get coverage for added parts, but you may want to purchase equipment coverage, depending on what you have added to the car.
Consequences of Not Reporting Modifications
If you did not report your modifications to your vehicle to your insurance provider, they will likely not be covered by your policy. You will be reimbursed for part of your claim but only up to the replacement value of the car, as it would have been before the modification.
In extreme situations, some insurance policies will void your policy completely because of these undisclosed car modifications, keeping you from recovering anything at all.
However, those situations are extreme and rare, depending on the extent of the modifications.
Contact an Attorney Today
If you have been in a car accident and you have question about whether your upgrades to your vehicle or personal belongings are covered, it is always recommended you contact an attorney today to discuss your case if you do not currently have a lawyer or have any questions.
A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company, and help determine if you'd need to go to court or settle. To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
