Custom equipment adds a personal flair to your car. If you love to customize your vehicle, it is important to protect your upgrades. Custom equipment can be stolen or damaged in a crash. Most car insurance policies only provide coverage for a minimal dollar amount while some do not provide any coverage at all without a special endorsement. Take a look at what you need to know about protecting your custom equipment.
What qualifies as custom equipment?
- Custom paint jobs
- Stereo, TV, and DVD systems
- Special wheel rims
- Extra items not installed by the original manufacturer
Custom equipment refers to items which are permanently installed in or on your vehicle. Removable items are considered personal belongings. Personal belongings are not covered under custom equipment.
Does my policy come with automatic custom equipment coverage?
Most policies do come with automatic custom equipment coverage as long as you have purchased physical damage coverage. $1000 and $1500 are both common automatic coverage amounts. The automatic coverage would apply to a theft or damage from an animal if you have selected comprehensive coverage on your vehicle. It would also apply if a collision damaged your custom equipment so long as you selected collision coverage. If you have any custom equipment at all, you should definitely check to see how much coverage your policy provides.
For example, USAA did provide coverage for custom equipment without listing a cap on their dollar amount. Now they are rewriting their policies to provide coverage for up to $5000. $5000 is a generous automatic coverage, but something to keep in mind if you are a USAA policy holder.
Protect your custom equipment by:
- Knowing the value of your custom equipment
- Purchasing both comprehensive and collision coverage to get the broadest protection
- Verifying your insurance company’s automatic custom equipment coverage
- Increasing your custom equipment coverage if needed
More on automatic custom equipment insurance coverage
The automatic coverage is not optional. If you do not have custom equipment valued at the automatic coverage amount, it does not matter. No charge is added to your policy for the automatic coverage. Normally your equipment does not need to be itemized or disclosed to the insurance company, unless you are increasing your coverage amount. Speak with your insurance agent or customer service representative to ensure you are insured properly.
