Car Modifications: Enhancing Performance And Style

Car modifications range from engine tuning and turbocharging to aftermarket wheels, body kits and custom paint. Each one changes something an insurer priced when the policy was written, and in California several of them also have to clear rules the rest of the country does not apply. This article covers what the common upgrades do to a rating, which ones are legal here, and how coverage is arranged around a build.

How do performance modifications affect insurance?

Engine tuning, turbocharging or supercharging, suspension work and brake upgrades change how the car accelerates and stops, which is the part an underwriter cares about. More power in the same chassis generally means a higher loss cost, so a carrier may surcharge the vehicle, decline it, or move it to a specialty market.

Engine swaps go further. Replacing the original engine can change how the vehicle is identified for rating and for smog. In California the Bureau of Automotive Repair expects the replacement to be no older than the chassis and to keep the emissions equipment that belongs with it. A swap that cannot be certified can hold up registration, which in turn affects the policy.

How do aesthetic modifications affect insurance?

Custom paint, vinyl wraps, aftermarket wheels, body kits, spoilers, upgraded upholstery, stereo systems and LED lighting change value rather than performance, and they change it in a direction a standard policy does not follow. Comprehensive and collision restore the car to factory condition, so a wrap or a set of wheels is not part of what gets paid unless it has been scheduled.

Cosmetic work also shifts theft exposure. The parts that make a car worth stealing are frequently the same parts sitting outside the base policy, which is a combination worth checking before the work is done.

Which car modifications are legal in California?

California enforces modification rules more actively than most states, and an illegal modification creates problems beyond a citation. It can hold up registration, fail a smog check, and give an adjuster something to argue about after a loss.

Window tint. Under Vehicle Code section 26708, front side windows have to let more than 70 percent of light through, and windshield tint is limited to a non-reflective strip across the top four inches. Rear side windows and the rear window are not restricted on a private passenger vehicle.

Exhaust. Section 27150 requires a working muffler at all times and prohibits cutouts and bypasses. Section 27151 bars modifying an exhaust so that it amplifies noise, and sets 95 decibels as the limit for vehicles under 6,000 pounds gross weight rating other than motorcycles.

Emissions parts. Aftermarket parts that touch the emissions system need a CARB Executive Order number to be legal here. A part sold freely in another state can fail a California smog check.

Suspension and lift kits. Section 24008.5 caps frame height by vehicle type and weight rating: 23 inches for a passenger vehicle, and 27, 30 or 31 inches for other vehicles as the gross vehicle weight rating rises. The same section limits body lifts, because the lowest part of the body floor may sit no more than five inches above the top of the frame. A build that is routine elsewhere can sit outside those figures.

Disclosing a modification is a separate question from whether it is legal, and both matter.

Vehicle Code requirements and enforcement practice both change over time. The rules described here reflect the law as written when this article was published. Anyone planning a build should confirm the current requirements with the DMV, the Bureau of Automotive Repair or CARB before spending money.

An undisclosed change may be treated as a material misrepresentation, which can affect a claim well beyond the part itself.

What is modified car insurance?

Many insurance companies offer coverage options specifically tailored to modified vehicles, known as modified car insurance or performance car insurance. These policies provide coverage for the unique risks associated with car modifications, such as higher repair costs, increased theft risk, and greater susceptibility to accidents due to enhanced performance capabilities. By obtaining modified car insurance coverage, owners can align the policy with what the build is worth and how the car is actually used.

How to insure a modified car properly

Four things decide whether a modified car is properly covered.

Declare the work. A carrier that does not know about the modifications is rating a different car, and an undisclosed change may be treated as a material misrepresentation.

Document it. Invoices, receipts and photographs are what support a limit when it is agreed, and what move a claim along when one is made.

Choose the valuation basis deliberately. Agreed value fixes the figure in advance. Stated value can pay the lower of the stated amount or actual cash value, which is a meaningful difference on a car with money in it.

Check how the car is used. Limited mileage and show-use policies cost less and carry conditions a daily driver would breach.

Custom parts and equipment coverage sits on top of comprehensive and collision, so both have to be in place before it can be added. Protecting a custom vehicle the right way works through the valuation options in more detail.

At Schneiderman Insurance Agency, we help clients understand their coverage before they need it. To learn more about how we can help you, please contact our agency at (818) 322-4744 or request a quote online.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.