Many of us like to modify and upgrade our cars by customizing them with special wheels and tires, lift kits, cosmetics, additional speakers, and so much more. The aftermarket options for our cars are growing by the day. So how do you protect those custom parts and equipment you have invested in your car? Your car insurance policy has just one option for you: Custom Parts and Equipment (CPE) coverage, which is also referred to as accessory coverage.
Do You Need Custom Parts and Equipment Coverage?
If you permanently added anything to your vehicle that was not originally installed by the manufacturer, you may choose to add accessory coverage to your auto insurance policy. But you can only purchase the CPE option if you have also purchased comprehensive/collision coverage for your car. Most auto insurance policies that include comprehensive/collision coverage already include some coverage for CPE.
What Custom Parts and Equipment Coverage Includes
Generally, CPE covers permanently attached equipment, accessories, and devices that were not installed by the manufacturer. The items are intended to enhance or change the appearance of your vehicle or its performance. On the other hand, anything installed by the manufacturer as a standard part for your vehicle would be covered under the normal limits of your comprehensive/collision coverage. For example, special trim or sports packages installed by the manufacturer would not require additional CPE coverage.
What You Can Expect CPE to Cover
Here are some examples of custom parts and equipment that should be covered:
- Custom paint and deluxe exterior accessories
- Special tires, oversized tires, or custom wide-tread tires
- Alloy/magnesium wheels; wheel covers; aluminum wheels or wire-spoke wheels
- Special roof and/or deluxe roof treatment
- Custom engine accessories
- Racing slicks
- Camper tops; T-bar roof and T-tops, including glass
- TV and other permanently installed items
- Anti-theft equipment not installed by the auto manufacturer
- Custom seats not installed by the auto manufacturer
What CPE Will Not Cover
Some items may not be covered, even if you have purchased custom parts and equipment insurance. These can include:
- Some radios, CD/DVD players, telephones, and other electronic devices not permanently installed
- Radar detectors not permanently installed
- Ski racks, bike racks, and similar items
You can readily understand that the distinction between covered or not is heavily influenced by whether the item is permanently installed. Items not permanently attached will generally not be covered by your auto insurance policy, but they could be covered under either a renters or homeowners policy, depending on the coverage you purchased under that policy. Some examples include jewelry, laptops, MP3 players, and sports equipment.
What Custom Parts and Equipment Coverage Costs
The cost of CPE coverage will depend on the degree to which you have customized your vehicle. If you are considering customizing a vehicle, it might be smart to ask your independent insurance agent in advance to provide you with an estimated quote. Depending on the extent of your customization, your agent may recommend a specialty carrier that could provide better coverage at a more competitive premium than your regular carrier.
Have any Questions About CPE?
As an independent insurance agent, we can review with you the special items you added to your car and help you select the appropriate limit. Contact us when you are purchasing your auto insurance, and we will discuss the options you may wish to consider. Remember, we are here to help you and answer any questions you may have.
Very informative, good to know stuff.