Getting Auto Insurance For Aftermarket Parts

Auto insurance for aftermarket parts is more difficult to get than normal auto insurance coverage. You may have to pay higher rates for the additional aftermarket parts that you have fitted into your car.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Insurance Feature Writer Rachel Bodine

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 6, 2022

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What You Should Know

  • Some insurers may drop you if you inform them of the aftermarket parts installed onto your car due to increased risk.
  • Statistics have shown a positive relation between high-risk drivers and the number of aftermarket parts installed on their vehicles.
  • Hagerty Insurance specializes in auto insurance for aftermarket parts.

So, after watching The Fast and the Furious 6, you feel like adding those custom aftermarket auto parts to your car, don’t you?

Maybe a spoiler here, neon lights beneath your car’s chassis, and a few aftermarket parts that’ll give your car that extra oomph. What about the custom exhausts pipe, or the turbo engine that makes your presence heard for miles around you? That’d be awesome, right?

But does insurance pay for aftermarket parts? What are the details surrounding auto insurance for aftermarket parts? Before you get these aftermarket parts out of impulse (and partly out of idolatry for the cool cars featured in the movie), think about this very real-life problem not usually encountered in the movies: who’s going to provide affordable aftermarket parts car insurance?

Your insurance company may use aftermarket parts for repair, but what if you’re adding them to get some extra pizzazz and power? That’s what we’re going to be talking about.

Even if some of your parts are aftermarket, get quotes for FREE from multiple insurance companies. Enter your ZIP code to get started.

Does insurance cover aftermarket parts?

You will have to note that your usual insurer might drop you if you inform them of the aftermarket parts that you’ve fitted onto your car. Sure, it makes your car looks menacing, and it’ll go from 0-60 mph in four seconds, but this could cause them to think you’re too risky to insure — modified cars and safe drivers don’t really go well together.

Even if they do in your case, be prepared to pay a high premium for the aftermarket parts that you’ve fitted into your car. That’s because auto insurance for safe drivers will cost you a lot less than auto insurance for a daredevil — which you may be labeled by your insurer due to your souped-up vehicle.

In addition, you’ll be slapped with a whole series of restrictions. Your insurer will probably forbid your car from even touching a racetrack.

If you were to get into an accident while in a racing event, you would not be able to claim a single cent from your auto insurance for your “blinged-out” car. They might even void your auto insurance contract.

Also, there will be mileage restrictions — you can only drive below a certain distance in a stipulated period of time. This is to prevent you from actually putting your car too much at risk by simply being on the road; your aftermarket parts-loaded vehicle will probably be sitting in the garage most of the time.

Your auto insurance rates will vary, but they will be higher than normal auto insurance. The table below shows average classic car auto insurance rates.

Average Annual Classic Car Insurance Rates by State
StatesAverage Annual Liability Insurance RatesAverage Annual Comprehensive Insurance RatesAverage Annual Collision Insurance RatesAverage Annual Full Coverage Insurance Rates
North Dakota$178.91$138.62$146.45$463.98
South Dakota$180.13$154.87$125.15$460.15
North Carolina$215.65$81.65$176.15$473.45
New Hampshire$240.34$66.46$184.45$491.25
New Mexico$292.82$103.54$166.19$562.55
West Virginia$295.10$122.57$197.80$615.47
South Carolina$316.25$108.56$159.04$583.86
District of Columbia$377.29$139.94$281.20$798.44
Rhode Island$455.88$79.31$246.91$782.10
New York$482.71$102.67$231.01$816.40
New Jersey$521.74$78.81$229.12$829.67
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Whether you have a classic or are just adding a few mods, expect your rates to be higher than normal auto insurance for a plain Ford Focus or Toyota Camry.

And there are reasons why your insurer may not want to cover your aftermarket parts. This video from HumbleMechanic goes over some of the differences.

OEM parts are simply safer. And used parts can’t be tested if they’ve been damaged in any way. This makes them less safe, and insurers believe that could result in greater physical damage to your vehicle.

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Specialty Auto Insurance Companies for Aftermarket Parts

Luckily for you, there are specialty companies available. A car parts insurance company known as Hagerty Insurance specializes in insuring vehicles that come loaded in aftermarket parts. You’ll definitely be able to get quotes from this insurer for your fully-customized car.

However, the premiums don’t come cheap — sometimes, they reach up to $2,500 per year. In addition, the conditions that were mentioned in the previous section apply — you can’t take your car on the racetrack and can only drive a certain number of miles.

There’s also this thing called the “Totaled Cap,” where you’ll only be paid this agreed sum of money in the event that your vehicle is totaled. Usually, this only encompasses the aftermarket parts that you have fitted onto your car. For example, say you have about $100,000 worth of aftermarket parts on your vehicle.

This video from Heacock Classic talks about how these insurers might approach writing a policy for your modified vehicle. They might insure it based on an agreed-upon value rather than stated value.

The insurance company will then agree to pay you $100,000 in the event that your car is totaled. In this situation, you’ll only be getting $100,000 and will forfeit the value of your vehicle. This is why most people buy an old model, like the 95’ Acura Integra; the value of the car is so low that the auto parts insurance is negligible.

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Why Auto Insurance for Aftermarket Parts is so Expensive

Simple: because you’re a high-risk driver. Statistics have shown a positive relation between high-risk drivers and the number of aftermarket parts they have installed onto their vehicles.

We’re not talking about aftermarket replacement parts of OEM parts that are fitted after an accident in the repair workshop; we’re talking about aftermarket custom car parts like engines and carbon-fiber hoods. In essence, these cars are modified for one sole purpose: to race and to win.

And that’s dangerous. The National Highway Traffic Safety Administration reports that there were over 100 road fatalities in 2007 directly resulting from illegal street races. Racing may seem fun to you, but insurers don’t agree.

To understand auto insurance and rates increases, it’s pretty simple. If an insurance company thinks you’re high-risk, they’ll charge you more to offset their potential claims costs.

As such, with all these races you’re taking part in, it’s inevitable that you’ll burn out your car during the race, or get some sort of damage to your car one way or another. Even though the auto insurance contract explicitly says that you cannot take part in races, but you may do it anyway. You can’t blame these insurance companies for charging high premiums for insuring aftermarket parts.

With the aftermarket parts finally fitted to your car, your next challenge begins: You’ll have to find an auto insurance company that’s willing to take your 600bhp 95’ Acura Integra under its umbrella.

This process is not easy — you may be rejected outright because you’re a high-risk driver, or you might be slapped with exorbitantly high auto insurance rates for insuring your aftermarket parts. It’s going to be tough, but hey, at least your car can go from 0-60 mph in less than five seconds.

Get the right coverage for your modified vehicle. Enter your ZIP code to get FREE quotes from multiple auto insurance companies.

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