Car Insurance for Modified Cars (2025)
Modified-car insurance covers vehicle parts and equipment not installed by the original manufacturer.
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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.
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, or in some cases, you may have to change insurance companies.
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.
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:
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.
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
Elephant: Best for high-value custom parts
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.
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.
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