Are Aftermarket Mods Covered by Auto Insurance?

Here’s how it typically works in U.S. auto insurance policies:

What Counts as Aftermarket Equipment?

Aftermarket (or “custom”) equipment includes anything added after the car left the factory, such as:

• Lift kits or lowering kits
• Custom wheels or tires
• Performance modifications (turbo, exhaust, suspension)
• Stereo systems, subwoofers, screens
• Truck accessories (toolboxes, bed liners, winches)
• Lighting upgrades or custom paint/wraps

What Is Usually Covered Automatically?

Most standard auto policies include limited coverage for aftermarket parts under comprehensive and collision—often:

• $500–$1,000 total, not per item

That means if you have $5,000 in modifications and the car is stolen or totaled, you may only get a small portion back.

What Is Not Fully Covered Unless You Act?

You typically need extra coverage if:

• The equipment is valuable
• It’s permanently installed
• It significantly increases the vehicle’s value
• It affects performance or safety

Without this, insurers usually pay only the vehicle’s factory value, not the upgraded one.

How to Make Sure You’re Covered

You have a few common options:

1. Custom Parts & Equipment (CPE) Endorsement

• Adds coverage specifically for aftermarket equipment
• Coverage limits are chosen by you (e.g., $5,000, $10,000)
• Often requires receipts or documentation

2. Stated Value or Agreed Value Coverage

• More common for heavily modified or specialty vehicles
• The vehicle value is agreed upon ahead of time
• Better protection for high-end builds

3. Receipts & Photos

Even with endorsements, insurers usually expect:

• Proof of purchase
• Installation records
• Photos of the equipment

Important Things Many People Miss

• Undisclosed mods can cause claim issues
  Performance mods especially may affect underwriting.
• Some mods increase premiums
  (e.g., performance upgrades, large lifts)
• DIY installations may be treated differently than professional installs
• Temporary/non-permanent items (like removable electronics) may fall under personal property limits—or not at all

Best Recommendation

If you add anything that would hurt financially to lose, call your insurer before or right after installation and ask:

• “How much aftermarket equipment do I currently have coverage for?”
• “Can I add a custom equipment endorsement?”
• “Will this modification affect my premium or eligibility?”