Custom parts and equipment coverage
You may not realize that the upgraded parts on your car might not be covered under your standard car insurance policy. In general, any enhancement to your car after it has left the factory is considered a modification and may require custom equipment insurance. Features such as aftermarket window tinting, custom paint jobs, or a wheelchair lift may require additional coverage to your policy.
If you’re thinking about adding custom parts and equipment to your vehicle, you should consider talking to an agent about additional coverage (aka CPE coverage or modified car insurance). You may be surprised to learn that some modified equipment, such as extra safety features, could result in car insurance discounts on your policy. Coverage availability and terms may vary from state to state.
What is custom parts and equipment (CPE) coverage?
Custom parts and equipment coverage refers to additions or enhancements that are either permanently installed or attached and alter the performance or appearance of the vehicle. This doesn’t include anything that is installed by the original auto manufacturer.
Does my car insurance cover car modifications?
Yes, Elephant will automatically cover a limited amount of CPE on your vehicle if you have comprehensive and collision coverage. For coverage beyond that amount, you may want to consider custom parts and equipment coverage. CPE coverage cannot be purchased alone; it is an add-on to comprehensive and collision coverage. Coverage limits vary by state, so ask an agent what is covered on your policy.
Common custom modifications
- Custom paint job
- Custom tires or rims
- Electronic equipment such as custom stereo, TV, or video system
- Anti-roll bars
- Added chrome
Modifications that a standard policy won’t cover
Some modifications that are not included are:
- Snow plowing equipment
- Equipment with altered suspensions that are homemade or kits that are greater than 4 inches
- More than $20,000 in custom parts
- Illegal modifications like nitrous oxide, underbody lighting, and dark tinting
Please contact an Elephant agent for a comprehensive list. Note that limits and specifications may vary from state to state.
Do modifications affect my car insurance?
It depends on the modifications made to your car. If you modify your car with certain parts, you may be considered “high risk,” which could affect your coverage. However, some modifications could lower your rates and help you qualify for certain car insurance discounts like the safe-car discount. Rearview cameras, anti-theft systems, and daytime running lamps qualify for an additional discount on your policy.
Modifications that improve the safety and security of your car sometimes result in a reduction of your car insurance premiums. However, some of these modifications may involve sophisticated technology that can be expensive to repair, so the modifications may actually result in an increase in your rates.
A few examples of modifications that may reduce your rates depending on where you live include:
- Alarms and security systems
- Rear and front cameras
- Adaptive headlights
Read through your existing policy to understand your coverage exclusions and exceptions. Also, be sure to keep any receipts and take photos of the improvements you make. Whether you’re a car enthusiast or want to replace your rims, talk to your agent to see what is covered.
Frequently asked questions about custom parts and equipment coverage
The following questions provide information about custom parts and equipment (CPE) coverage.
Do I Need Special Auto Insurance Coverage if I Modify My Car?
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Modified vehicles typically include expensive parts, so additional coverage may be necessary to cover the increased value of the car.
How much is custom parts and equipment coverage?
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The cost of custom parts and equipment varies according to the value of the parts. Elephant automatically covers a limited amount of CPE on your car if you carry comprehensive and collision coverage. The cost of additional CPE coverage is determined by the total value of the parts and equipment added to the vehicle after it has left the factory. CPE coverage is an add-on to comprehensive and collision coverage on your policy.
What Does CPE Insurance Cover?
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Custom parts and equipment (CPE) coverage helps pay to repair or replace parts added to your car, like navigation systems, custom rims, or tinted windows.
What does CPE insurance not cover?
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Some modifications not included in CPE insurance include:
- Snow plowing equipment
- Equipment with altered suspensions greater than 4 inches
- More than $20,000 in custom parts
- Illegal modifications like nitrous oxide, underbody lighting, and dark tinting
Get a quote on custom parts and equipment coverage with Elephant Insurance
Along with custom parts and equipment coverage, Elephant offers premium car insurance, discounts, and several coverage options to support our customers’ needs. Get in touch with one of our agents to learn more about how we can help.