Car Insurance for Modified Cars (2024)

Modified-car insurance covers vehicle parts and equipment not installed by the original manufacturer.

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Drivers using Insurify have found quotes as cheap as $36/mo for liability only and $42/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on November 7, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 7, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on November 7, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 7, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Alani Asis
Written byAlani Asis
Alani Asis
Alani Asis
  • 3 years of content writing

  • Bylines with leading financial publications

Alani is a freelance writer specializing in personal finance. She aims to make complex topics more approachable through fun, digestible content.

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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Updated November 7, 2024

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Car modifications serve many purposes: enhanced performance, aesthetics, convenience, safety — you name it. Unfortunately, standard car insurance policies don’t always cover aftermarket parts or classic cars. So you’ll likely need modified-car insurance, which could cost more.

If you have a modified car, be sure to inform your insurance agent to update your current policy.[1] If your current insurer doesn’t offer modified-car insurance, you can compare car insurance quotes to find a policy that meets your needs.

Quick Facts
  • Custom parts and equipment coverage offers financial protection for many types of car modifications.

  • Some types of modifications can lead to an insurance discount.

  • The best insurance companies for modified cars are Progressive, Elephant, and Hagerty.

What to consider before modifying your car

Modified-car insurance is important because it protects your alterations from accidents, theft, weather damage, and more. If you fail to notify your insurance company to update your coverage to account for those modifications, you may have to pay for repairs or replacements out of pocket.

Before you modify a car or add any aftermarket customizations, it’s a good idea to assess the long-term effects of those changes. Consider how modifications may affect your insurance rates since you have to make premium payments to keep the car insured.

Will vehicle modifications raise your car insurance rates?

Generally, vehicle modifications raise car insurance rates, but this isn’t always the case. Modifications lead to higher premiums because repairing or replacing modified parts is typically more expensive. As a result, you end up paying more.

Before you make any modifications to your car, it’s a good idea to ask your insurance company how those changes could increase your auto insurance rates.

Are you buying a car that’s already modified?

Just because you didn’t make modifications to a car doesn’t mean you can ignore them. When you buy a used car, it’s best to have a mechanic inspect the car before you complete the purchase. Make sure you’re aware of any modifications so you can get an accurate quote for car insurance. The car’s value will influence how much you spend on auto insurance.

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Different types of car modifications

The more your modifications increase the value of your car, the more likely your car insurance rates will go up. Some auto insurance companies also consider whether you installed the new parts yourself or had them professionally installed.

Modifying a car involves swapping out the factory parts or adding aftermarket parts. Examples of common car modifications include:

  • Custom paint

  • Fender, hood, and body upgrades

  • Trailer and towing parts

  • Truck bed liners and bed accessories

  • Seats and upholstery

  • Dash systems and gauges

  • Headlights and taillights

  • Exterior accessory lighting

  • Interior lighting

  • Sound system and audio accessories

  • Alarms and security products

  • Mobile TV and video cameras

Car insurance coverage for modified cars

When shopping for insurance, it’s important to compare both standard coverage options and modified coverage add-ons to find a policy that fits your unique needs and budget.[2]

Here’s a closer look at some of the types of coverage for modified cars:

  • illustration card https://a.storyblok.com/f/162273/150x150/d7333ddf2e/car-and-driving-96x96-orange_046-car-accident.svg

    Liability coverage

    Required in every state except New Hampshire, liability insurance pays for the injured party’s property damages and medical bills if you’re at fault in the event of an accident.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Comprehensive insurance covers repairs and replacements for your vehicle if it’s damaged due to a non-collision event, like severe weather, theft, or vandalism. Your lender may require you to carry this coverage if you finance your vehicle.

  • illustration card https://a.storyblok.com/f/162273/100x100/31bb162db0/accident-forgiveness.svg

    Collision coverage

    Collision insurance provides coverage to your vehicle if you hit another car or object, like a fence or mailbox, regardless of fault.

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Uninsured/underinsured motorist coverage

    While not required by every state, having uninsured/underinsured motorist coverage can help pay for you and your passenger’s medical expenses and vehicle damages if an uninsured or underinsured driver is at fault in a car accident.

  • illustration card https://a.storyblok.com/f/162273/150x150/c09380c3c0/car-dashboard-96x96-orange_045-airbag.svg

    Personal injury protection coverage

    Also known as PIP, this coverage helps pay for medical bills, lost wages, funeral expenses, and other costs associated with an accident, regardless of fault. This type of policy is required in no-fault states.[3]

  • illustration card https://a.storyblok.com/f/162273/100x100/bee953a0c5/broken-tail-light.svg

    Custom parts and equipment coverage

    This type of modified-car insurance is an optional coverage that covers the cost of replacing and repairing aftermarket parts, like headlights and sound systems.

  • illustration card https://a.storyblok.com/f/162273/150x150/7d6bccfe65/car-and-driving-96x96-blue_019-car.svg

    Classic car insurance

    Specifically made for classic cars, this optional insurance provides liability, collision, and comprehensive coverage for classic cars 1025 years old.[1]

Companies with additional coverage for modified cars

Not all insurance companies offer coverage options to help protect enhancements and modifications on your vehicle. And some types of add-on coverages could affect your rate. Check your current policy for coverage options.

You can also research companies that offer modified-car insurance to find the best fit, including the following:

  • Progressive: Progressive offers custom parts and equipment coverage with a coverage limit of $5,000. It pays for repairs and replacements to the modified parts of your vehicle.

  • Elephant: Elephant auto insurance provides custom parts and equipment coverage of up to $20,000 for custom parts. You must purchase a full-coverage policy to add this coverage.

  • Farmers: Farmers Insurance advertises aftermarket parts coverage, which you can add to your full-coverage policy. But the company doesn’t specify coverage limits on its website.

  • Hagerty: Hagerty is an insurance company that specializes in coverage for collector, classic, and modified cars. Coverage for modified cars is equal to a value that you and your insurer agree upon.

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Best modified-car insurance companies

Before you choose a modified-car insurance policy, it’s important to shop around to find the best possible coverage for your needs. If you need modified-car insurance, take a look at some of the best insurance companies for modified cars.

Progressive: Best for coverage options and discount opportunities

JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.4 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$79/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$138/mo
How drivers feel about Progressive

Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.

AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive

Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.

AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
Reviews (5,782)

John

November 7, 2024

Verified Review

Keep It Up!

They are very good in all ways. Even if I don't use them often, they are excellent in every way that I have experienced.

Sharon Elaine

November 7, 2024

Verified Review

Looking for a Better Option?

I've been a good driver, so I really didn't have much interaction with them. However, when my bill increased from $170 to $251, I was puzzled. Especially when I kept seeing other companies advertising better deals. So, I'm out here looking for better options because I'm on a limited income and need something more affordable.

Eric

November 7, 2024

Verified Review

Good

It's a good company, but it's expensive given my driving record.
See all Progressive reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.82
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company

Progressive offers a coverage limit of $5,000 for custom parts and equipment. It also has a menu of coverage options to increase protection for your customized car, including accident forgiveness, gap, and rideshare coverage.

Pros
  • AM Best financial strength rating of A+ (Superior)

  • Rewards program for safe drivers

Cons
  • No available anti-theft device discount

  • More customer complaints than average, according to the National Association of Insurance Commissioners (NAIC)

Elephant: Best for high-value custom parts

User Reviews
3.6
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.3 /10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$111/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$195/mo
3.6
A solid optionBased on 108 verified guest reviews and ratings
How drivers feel about Elephant

Drivers appreciate the good service, low initial rates, and responsive claims handling but dislike the frequent and unexplained rate increases.

AI-generated from the text of verified reviews collected by Insurify
Best For
Optional coverages
Good drivers
Numerous discounts
How drivers feel about Elephant

Drivers appreciate the good service, low initial rates, and responsive claims handling but dislike the frequent and unexplained rate increases.

AI-generated from the text of verified reviews collected by Insurify
Best For
Optional coverages
Good drivers
Numerous discounts
Reviews (58)

Donald

October 21, 2024

Verified Review

Good company, but got more expensive over time

They have a great website and provide quick answers. Their customer service is good. However, there isn't much flexibility in coverage. Over time, it became too expensive, especially considering I had no claims.

Denise

October 5, 2024

Verified Purchase

The customer service representatives were professional.

Elephant Insurance is an affordable company.

Ajay

October 1, 2024

Verified Review

Good Insurance Company

Great.
See all Elephant reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.77
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company

Elephant auto insurance provides modified car owners with up to $20,000 in custom parts and equipment coverage. This could be a good option if you’ve installed numerous or expensive parts. Elephant also offers add-ons like at-home mechanic services and accident forgiveness coverage to further upgrade your car insurance policy.

Pros
  • Many available discounts and coverage options

  • Legal assistance coverage available

Cons
  • Available in only eight states

  • High NAIC complaint ratings

Hagerty: Best for classic and collectible cars

To cover your classic or collectible modified vehicle, Hagerty builds an agreed-value policy based on the amount you and the appraiser agree that the car is worth. The agreed value is the basis of your coverage amount. The company also offers unique coverages, including up to $750 in spare-parts coverage and $10,000 in auto-show medical reimbursement.

Pros
  • Nationwide coverage

  • Potentially lower premiums than standard car insurance

Cons
  • Doesn’t offer insurance for regular-use vehicles

  • Storage and driver requirements apply

Modified-car insurance FAQs

To help you better understand how modified-car insurance works, here are answers to some frequently asked questions about this type of insurance.

  • What is considered a modified car?

    A modified car is a vehicle you’ve altered with aftermarket parts or parts not sourced from the original manufacturer. Modifications can improve your vehicle’s performance, safety, and appearance. But it’ll likely increase your insurance costs.

  • Do modified cars have more expensive insurance?

    It depends. Generally, having a modified car leads to higher repair costs, which may lead to higher rates. But some modifications actually decrease your insurance rates if they help improve your car’s safety.

  • Do you need to tell your insurance company about custom modifications?

    Yes. You need to inform your car insurance company about any custom modifications you make to your car, as your standard policy won’t cover those changes.

    If you file an insurance claim without modified-car insurance, you may have to pay out of pocket to repair or replace custom parts. Being up front with your insurer helps you not only get the supplemental coverage you need but can also protect your original policy.

  • Which car modifications can lead to insurance discounts?

    Many insurance companies offer discounts for car modifications that enhance your vehicle’s safety. For example, you may see savings for anti-theft systems, additional airbags, and advanced braking systems.

    That said, the availability and specifics of vehicle safety discounts often vary by insurer.

  • Does modifying a car void insurance?

    Not necessarily. But if you fail to disclose car modifications, your insurance company may not cover them if you get into an accident or your car is damaged or stolen. Without modified-car insurance coverage, you’ll likely have to pay out of pocket to repair or replace aftermarket parts.

Sources

  1. Insurance Information Institute. "Insuring your classic car."
  2. Insurance Information Institute. "How to find the right auto insurance."
  3. Insurance Information Institute. "What is covered by a basic auto insurance policy?."
Alani Asis
Alani Asis

Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

media logomedia logo

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