What is Custom Parts and Equipment Coverage?
Standard Insurance Does Not Cover Custom Parts
You buy car insurance to protect your vehicle. However, standard car insurance policies may not cover everything in your vehicle. Standard car insurance policies do not cover aftermarket parts or other custom parts or equipment that you may have added to your vehicle. Some drivers spend thousands of dollars in customizations to their vehicles only to be shocked when a claim arises and they learn that their insurance refuses coverage for those parts. Unless you have Custom Parts and Equipment Coverage, your standard auto insurance policy will not cover custom parts.
What is Custom Parts and Equipment Coverage?
Custom parts and equipment coverage (CPE) is an optional endorsement you can add to your auto insurance. CPE covers permanently installed custom parts or equipment on your vehicle. If you have installed a custom spoiler, wheelchair lift, after-market stereo equipment, or other parts to your vehicle, then CPE could cover these components. If you have added items to your vehicle that alter the performance, appearance, or function, then these items could fall under CPE. Custom paint jobs, electronic equipment, custom tires and rims, and custom lighting all could fall under CPE. Truck accessories geared towards the duck woods and deer woods like oversize off road tires, LED light bars, and winches could all fall under CPE. If your car is damaged in a covered incident, then CPE will compensate you for the cost of repairing or replacing your custom parts and equipment.
What Does CPE Cover?
What is covered will vary among different insurers. Some insurers will cover virtually everything that has been added to your vehicle and others will have exclusions that limit certain coverages. CPE will not cover illegal modifications such as nitrous oxide or homemade modifications. Generally custom parts and equipment coverage will cover most of the following:
Any dealer-installed equipment that was not offered by the original manufacturer
Custom paint jobs, decals, or graphics
Anti-theft systems not installed by the manufacturer
Custom tires, custom wheels, custom spinners, or similar parts
Oversized or wide tread off road tires
After market roll bars, fog lights, brush guards, camper shells, and trailer hitches
Some custom suspensions (some will have height restrictions)
Certain electronic equipment that are permanently installed (i.e. TV or DVD Players)
Wheelchair lifts or disability equipment
Custom Parts and Equipment Coverage Limits
Coverage limits will vary between insurers and States. In general, in the Jonesboro area, custom parts and equipment coverage limits are available up to $10,000. Based on your own custom parts or equipment, you can choose coverage amounts ranging from $1,000 up to $10,000. Your insurer will then cover the cost of replacing or repairing the custom parts up to your selected limit, minus your deductible. We recommend keeping all receipts when you buy custom parts and equipment for your vehicle. If you have receipts that show what you have paid for the custom parts or equipment, it may make it easier to justify what your claim is worth.
How to add Custom Parts and Equipment Coverage to your Car Insurance
Adding CPE to your auto insurance is easy. Generally, you can contact your insurer and add it to your insurance instantly. Most drivers can add CPE to their auto insurance for just a few dollars per month. Selby Insurance can help review your Custom Parts and Equipment needs and walk you through the process of adding CPE to your auto insurance policy. To learn more about your options, give us a call at (870) 336-2121 or email tobyselby@selbyinsurance.com. Stop by our office in Jonesboro anytime at 2216 Wilkins Avenue to talk about your Custom Parts and Equipment needs or to get a free auto insurance quote.
