Car Modifications and Insurance in California: What’s Covered and What’s Not  

Are car modifications covered by insurance in California? While some car modifications are covered by car insurance, practically any modification will increase your vehicle’s value and require higher repair costs. Whether you customize your car with new rims or a custom paint job, your first step should be getting a car insurance quote from a California company.  

If you want to join California’s thriving car culture but haven’t quite decided what modifications you want, consider how they’ll impact your car insurance rates. Get the details you need, including what types of car modifications are usually covered by insurance, which may void your policy, and how to ensure your auto upgrades are properly protected. 

What Counts as a Car Modification? 

Any enhancement that changes your vehicle from the way it came from the factory counts as a car modification. Car upgrades usually fall into two main categories:  

• Aesthetic modifications: Enhancements that change the car’s appearance, such as custom paint jobs, chrome bumpers, special lights, or new stereos 

• Performance modifications: Upgrades that change how the car performs, including turbochargers, lifted suspension, and strut bars 

Why Modifications Matter to Insurers 

If you’re asking, “Are car modifications covered by insurance in California?” it can help to understand insurers’ concerns. Vehicle modifications matter to insurance companies for two main reasons. They either increase the car’s value or represent a higher risk.  

For example, an expensive set of custom rims that probably cost you thousands can increase your vehicle’s value–not to mention, you’d want your policy to pay for the cost if they were damaged. On the other hand, a turbocharger significantly increases engine performance, suggesting a driver is interested in speed and is consequently a higher risk to insure.   

How Do Car Modifications Affect Your Insurance? 

As a follow up to the question, “Are car modifications covered by insurance in California?” it’s just as important to ask how they impact your coverage. The ways that car modifications affect your insurance depend heavily on the type of upgrades you invest in.  

Your modifications may spur you to check into higher policy limits to cover the value of expensive parts or make you a higher risk to insure, increasing your monthly premiums.  

But modifications that add safety features can actually lower your premium. For instance, anti-theft devices can reduce burglary claim risks, and parking sensors or backup cameras can reduce your risk of hitting obstacles, making you a safer driver.  

Risk of Claim Denial 

California car insurance rate increases have many drivers worried about divulging any information that could raise their car insurance premiums. However, a claim denial could leave you paying much more out of pocket than higher rates.  

Many aftermarket parts and features are not covered by a standard auto policy, which means effectively insuring your modified cars requires endorsements or custom insurance. Failure to inform your insurer about modifications can even mean automatic claim denial in some cases.  

Not telling your insurer about your modifications is classified as misrepresentation. This can void your entire policy and leave you uninsured.  

What Car Modifications Are Typically Covered in California? 

In general, only modifications that do not deviate from the manufacturer’s original specifications are covered by a standard car insurance policy. This typically means replacing parts as needed for basic maintenance due to wear. For example, new tires or engine belts are not considered modifications.  

However, with the right policy, California drivers can get insurance for many types of aesthetic and performance modifications. A modified insurance policy or specific endorsements to cover aftermarket parts can cover rims, custom paint, turbochargers, fuel system upgrades, suspension changes, and more. 

What Documentation You’ll Need 

If you choose to modify your vehicle, keeping accurate documentation is vital to ensuring you have correct information about the car’s value. Maintain detailed records and receipts for all modifications to document the value of upgrades and provide essential details like professional installation. Such documentation will be useful when applying for coverage or filing a claim.  

What Modifications Are Not Covered or May Void Coverage? 

Sometimes, the answer to “Are car modifications covered by insurance in California?” is no. Most legal performance and aesthetic modifications can be covered by modified car insurance. However, those that fall outside of the law aren’t likely to be covered and may even void your coverage. Such modifications typically include: 

• Tinting that lets in less than 70% of light on front windows 

• Colored lights 

• Suspension lifts that exceed the legal limitations for your vehicle’s weight 

• Exhaust system upgrades that increase the vehicle’s sound or fail emissions tests 

It’s always a good idea to talk to your insurer before applying modifications to ask the vital question: “Will your insurance cover your modifications?”  

How to Properly Insure a Modified Car in California 

Talking to your insurer before having modifications installed is the best way to ensure you’ll be properly insured. You can learn if your modification is insurable and how much it will affect your premiums before making the change.  

If you’ve already made modifications or purchased a car with modifications installed by the previous owner, talk to your insurer. When purchasing a previously modified vehicle, ask the current owner what type of insurance they have and request documentation for the modifications. Take this information to your insurer before you add the car to your policy.  

Generally, when insuring a modified vehicle, you can expect to meet with an appraiser to assign values to any custom parts and equipment added to the vehicle. You and your insurer can then agree on the value of the car and develop a custom policy or apply supplemental coverage.  

Tips to Avoid Coverage Gaps 

Modifications to your vehicle generally increase its value, which means you need specialized coverage to avoid gaps that leave you paying out of pocket. These tips can help you avoid insurance gaps when driving a modified vehicle in California. 

• Compare quotes from different providers to find affordable full coverage car insurance. 

• Always disclose all information about modifications to your insurance provider. 

• Work with an insurer experienced in coverage for modified vehicles. 

• Maintain updated documentation about the value of your upgrades. 

• Ask about gap insurance to cover any unexpected costs. 

Upgraded Your Ride? Make Sure It’s Properly Insured—Get a Free Quote Today! 

Failure to divulge car modifications is a type of insurance fraud and not worth the risk of driving without coverage. If you’ve recently upgraded your ride, finding the right insurer is key to getting the right insurance coverage at the right cost.  

The auto insurance specialists at Cost-U-Less Insurance are experienced with the coverage demands of modified vehicles and are happy to cater to your insurance needs. Call (800) 390-4071 for more information or request a quick online car insurance quote. If you’d rather meet with an agent in person, find a California location near you.