Why do you need to customize your car insurance after car customization?

Today, car is a basic necessity for each family. Most families today have more than one car. Majority of the cars are insured when they are purchased. Some are insured later when either the owners change or when the earlier insurance term ends. However, today due to many modifications and change in specifications in the car, the base model of car drastically changes. As the insurance only covers the initial model, most of these changes due to customization might not be automatically covered by previous car insurance.

What is car insurance?

Generally, a basic car insurance policy is designed to cover the insurance of the basic car model as sold by the company. All parts of cars are original and policy is made to cover them based on their type and material. However, when you customize the car, most of the components are changed. They may be completely removed or replaced by the similar material or replaced b completely new material or without any removal new parts may be added to the car. Each of this customization will alter the car and thus possibly the coverage of car insurance too.

There can be two instances of customization of cars. In the first, let’s say you added a new music system worth X Dollars in the car. Now if the car is stolen, this new music system will not be covered by insurance as it was not specified while original insurance was done. However, if the insurance were also customized while adding this system, then it would have been covered.

In the second instance, let’s say you added the music system but the insurance company said they would not alter the insurance policy to cover new system. This way you would not recover the money if the car is stolen as the insurance policy do not allow coverage of customized music system. Thus while adapting customization, it is necessary to understand the present insurance policy and will it allow new customization.

Now if your car insurance does not cover this customization, you would spend more money on anti-theft devices to reduce the risk of theft. Thus again you would spend more money on a car.

The following cases would help you understand the importance of car insurance customization:

1. Customization in base models with changes that are allowed as per car insurance: In this case, the standards features remain the same. Thus the changes are adjusted in car insurance.
2. Customization of non-standard parts: In this case, insurance won’t cover the price of these non-standard parts. Thus after spending money on them, you will spend more money on anti-theft equipment to save the car for thefts.

Hence, it is important for a person to understand how much customization should be done in the car while reducing the financial risk if the car is stolen. One such company that takes care of car insurance in California is Raise Insurance. It covers car insurance in Garden Grove to Car insurance in Anaheim. They customize the car insurance so that most of the basic and non-standard customization can be covered under the car insurance.

Ranjeet Rai provides full-service agency since 1982 and he has great experience in all lines of business including home, commercial, health, liability and so on.