It’s quite possible that aftermarket auto mods are more popular now than ever before, and as electric vehicles continue to grow in popularity each year we’re already beginning to see a lot of overlap. We’ve already discussed insurance coverage for electric vehicles and for modified vehicles, but do you need special insurance for EVs with aftermarket mods? Whether you’ve already modified your EV or are just considering some upgrades, today we here at Glover Family Independent Insurance are going to dive into this topic to make sure you’re armed with enough information to ensure proper coverage for your vehicle.
How Do Aftermarket Mods Affect EV Insurance?
So, the good news is that aftermarket mods don’t affect EV insurance any differently than they would on a conventional vehicle. That said, you will likely need extra coverage for any modifications that you make, just as you would with a regular automobile. Any aftermarket upgrade you make – be it cosmetic, performance, functional, et cetera – can completely alter the risk profile of your vehicle, which is what insurers use to calculate rates, premiums and so on.
In other words, if you modify your vehicle and then get in an accident without amending your policy, those modifications probably won’t be covered and you’ll be on the hook for those repair or replacement costs yourself. While not every aftermarket mod will have an impact on your policy, they all could. This is precisely why it’s important to disclose any modifications you make to your insurer and inquire about any necessary changes to your policy.
Do You Need Special Coverage for a Modified EV?
Again, you don’t need any special coverage because you’ve modified an EV in particular, but any modified vehicle typically does require special coverage regardless of what powers it as standard auto insurance may not fully cover it. Some policies outright exclude coverage for anything on a vehicle that goes beyond factory specifications, while other policies might simply not offer enough coverage to facilitate the extra costs.
If you only want your stock components covered, then you don’t need special coverage at all — but you’re likely going to want to protect the investment you’ve made in these special additions. So, here are some coverage options you might want to consider:
- Custom Parts & Equipment Coverage
- Probably the easiest route for you to take, this type of policy extension will cover any and all of your aftermarket additions; however, there are limits – which vary by provider – so ensure that your coverage will match your vehicle’s modifications before signing.
- Agreed Value Insurance
- A bit more complicated, this type of policy is probably the way to go if you have a heavily modified vehicle. A standard policy typically pays for the vehicle based on depreciation, but Agreed Value allows you and your provider to establish the modified EV’s worth upfront and base your coverage on that value.
- Modified Performance Coverage
- If you’re focusing on performance modifications as you customize your EV, including upgrades related to power, aerodynamics and drivability, then you might want to consider this policy which is typically necessary for mods that significantly alter the factory specifications of your vehicle.
- Liability Adjustments for Performance Mods
- While this isn’t a separate policy or coverage option, it’s important to note that if you introduce modifications to your EV that affect things like speed, handling or safety, your insurer may need to adjust your liability coverage. If you don’t disclose these modifications, you could end up with gaps in your coverage.
Find Coverage with Glover Family Independent Insurance
We hope this information has given you a better understanding of how your coverage is affected by aftermarket mods on your electric vehicle. If you take nothing else away from the blog, we want to stress just how important it is to disclose any changes you make to your EV to your provider as soon as possible. You can encounter complications or get undercompensated if you fail to disclose these adjustments.
If you have any questions or if you’re looking for new coverage for your modified EV – or any vehicle for that matter – we’d be happy to discuss your situation here at Glover Family Independent Insurance. We look forward to hearing from you!
