No one wants to get into a car crash, but it’s happening. For a reason, you paid those modified car insurance premiums, so what happens now if you crashed your modified car? Originally, the insurance system for a standard model car is the same as it would be.Visit crash repairs.
Vehicle damage is assessed and the cost of repairing your vehicle is measured and compared to your car’s estimated value. In other words, the insurance company specifically compares the cost of repair with purchasing the same car. If the cost of repair is higher than the value of your car, or if it can not be repaired, your car will be “written off,” and the insurance company will offer to pay you their estimate of the value of your car.
And that’s where modified cars get tricky. Many improvements can be expensive to install without increasing the car’s value. Consider an expensive stereo system: a $3,000 stereo can be mounted in a $3,500 car, but it won’t raise the price of your car to $6,500. This is where the small details of what is and is not covered by your car insurance become all relevant, and you might want more focus when you choose the plan. Hindsight is always 20/20, of course, so let’s look at some of the stuff you might learn before you get into an accident and find out that your insurance money is short.
After an accident, your insurance company will estimate the replacement value of your car by creating an average resale value similar to yours for cars. Almost always, this quality seems small, especially for modified cars. If you want to compete with their estimate effectively, you need to do your own analysis, looking into the recent cost of selling cars similar to yours in model, year, mileage, options and modifications to the aftermarket. If you can find similar vehicles that sell at a relatively high price but are in poorer shape, with more kilometers or less options, the insurance company would find it more difficult to lower the rate.
Keep a detailed record of the improvements you’ve made to your vehicle, receipts, photos, or even video. The more facts you can bring to the table, the more leverage you have in coping with the replacement value.
Make sure you know and don’t cover what your modified car insurance does. If you’re not happy with your reporting, talk about changing your strategy or finding a new company. It’s also a good idea to address any new changes you’re hoping to implement before you do the job, so you’re going to know exactly how they’re going to affect your strategy first.
Please announce any changes. Hide modifications to keep your premiums low is the worst thing you can do for yourself. It’s not just that they won’t be covered; if they aren’t disclosed, even minor changes will void the plan, and you might end up with NO insurance money.