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Modifying your car insurance

Several things can happen if you modify your vehicle for performance:

• Your carrier may not offer extra equipment coverage.
• Your auto insurance rates may increase if the company finds out.
• Your modifications for performance would only be covered to a certain limit ($1000-$5000 typically).
• Your coverage could be dropped by the company.
• Your high performance car becomes more attractive to car jackers and thieves.
• Your stock car may no longer be classified as such and drop in covered value.
• If the modifications are illegal, you could be cited, or have the car confiscated.
• You may be tempted to display speed, a moving violation.

Pimping your ride will do more than make you feel good. It can hurt your wallet. The price tag goes up when underwriters factor calculate losses involved in illegal street racing. Wrongful death. Totaled vehicles. Civil defense litigation. Car theft.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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