Upgrades for your car can range from a new stereo system to high-end sound systems and stylish rims. Some people install advanced security systems or TVs to keep their kids entertained. But will your auto insurance in Denver, CO, cover these upgrades?
Standard Coverage
Standard auto insurance policies typically cover the cost of factory replacement. For example, if you’re in an accident, the insurance company will pay for a factory radio replacement rather than the upgraded radio you installed. This can be problematic for expensive upgrades, especially if you’ve invested thousands in items like speakers and amplifiers.
The Situation Matters
Coverage often depends on the situation. Most policies have a coverage limit. For instance, a policy may reimburse you for stolen items up to $2,000. If your rims are stolen and cost $1,500 to replace, you’ll be covered. However, it’s important to ask an agent at AFI Insurance whether your policy provides sufficient coverage for your specific upgrades.
Additional Coverage
If your current policy doesn’t offer enough coverage, you may need to purchase additional coverage. This could involve increasing your coverage limits or adding a rider, which provides extra protection for specific items. Some insurance companies may refuse to cover high-theft or high-value items, requiring you to obtain a separate policy for those upgrades. It’s essential to confirm with your agent whether your policy will cover specific items.
At AFI Insurance, we understand the importance of protecting your car upgrades in case of an incident. We’ll work with you to discuss your specific upgrades, replacement costs, and any additional coverage you may need. Contact us today to learn more. We proudly serve the Denver, CO, area.
