Customized Vehicle Coverage Arizona AZ

Reader’s Question:

My car has undergone extensive customization, paid a great deal of money for it, and I’m wondering how this will affect the car insurance I have it under here in Arizona.

Dante

Phoenix, AZ

Whether or not extensively customized vehicles will still have the same level of auto insurance coverage or if the insurance premiums will stay the same is highly dependent on who you got your car insurance from. Generally speaking, most car insurance providers will raise their rates to compensate for the additional risks perceived coming from a customized vehicle. Here’s some of the reasons why you may find yourself having to pay more for your customized vehicle there in Arizona:

Increased Likelihood of Theft
Customized vehicles are seen as being a more attractive target from car thieves and vandalism. In the insurance company’s perspective this increases your likelihood of filing an insurance claim in the future hence, costing them more to maintain the coverage and therefore, increasing your insurance premiums.

Increased Value of your Vehicle
It is possible that your rates could also be re-evaluated to reflect the added actual value of your vehicle due to expensive upgrades and installations that you would naturally also want to insure (seeing as you paid good money for them). The higher the vehicle’s worth becomes, the more a car insurance company will have to pay you in the event of a loss. Again, the higher risk of insuring you which is reflected on higher auto insurance rates.

A different scenario could occur where if your customizations are to increase the safety and security of your vehicle, then you can actually expect to get discounts from your auto insurance company.

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