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Modified Car Insurance – What You Didn’t Know


What do you know about the modified car insurance system? Yes, it is a coverage agreement that is designed to apply to cars having customized or altered parts, or those which have been personalized either for looks or performance. When a conventional insurance contract would be voided by changing a car’s parts and doing away with whatever warranties it may have had, this scheme will cover the finished product, for as long as it still has any insurable interest.

This is the common notion of modified car insurance. However, did you know that there are some things that insurers are not telling you?

Although modified car insurance is designed as a solution for car modification enthusiasts in their hopes of getting their rides insured, car owners have to know what insurers have in mind.

Of course, no one in their right state of mind would dare insure a car that has its parts changed or traded in for surplus or fabricated parts. This is especially true for brand new cars that have been geared up after a day or two from the dealership. However, since there has been a huge demand for customized cars, insurance companies started thinking about addressing this demand. Hence, this scheme was born. However, insurers did not tell car owners that the risk is greater on the part of the personalized vehicle. This is because there is really no assurance that the additional parts installed would work well like the original ones. Moreover, companies now have a right to demand higher premiums, so do not be surprised if your insurance payments have almost doubled compared to the amount you used to pay for your stock ride.

Another thing that you probably did not know is that canceling a modified car insurance policy is way easier than doing so with a conventional policy. This is because of the fact that your car, with all its after-market enhancements, has greatly reduced in value and insurability. You have to strictly comply with all representation requirements regarding your vehicle. One little slip-up and a provider can cancel your agreement, and no, you will not be able to get your premiums back.

This just goes to show that companies offering automobile coverage always have their best interests in mind when they offer automobile security policies. However, this does not mean that you should not trust your agent. It only means you have to be vigilant in entering into any transaction, whether it be for indemnity contracts or otherwise. Taking note of the possible dead ends you may encounter will always help you out.