Compare Car Insurance Companies That Allow Modifications [2021]

At least nine car insurance companies that allow modifications for your vehicle are national insurers. Some of the most affordable car insurance companies that allow modifications include specialty insurers like Grundy and Hagerty. However, if you choose to use a major auto insurance company that allows modifications, you may end up paying up to 10% of your modified car’s value. Compare sample quotes from car insurance companies that allow modifications to save.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Oct 5, 2021

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Here's What You Need to Know

  • Some top companies, like Allstate and Progressive, are among the car insurance companies that allow modifications
  • Regular insurance companies may require you to purchase separate insurance policies or add-on coverage for modifications
  • Customizations will generally raise your insurance rates, but some modifications may qualify you for discounts
  • Safeco may be one of the most affordable car insurance companies that allow modifications to your car
  • Specialty car insurance companies like Hagerty or American Collectors might offer some of the best insurance coverage for modified cars, plus extra savings

If you have a modified car or you are thinking about customizing it, you will need to compare quotes from car insurance companies that allow modifications to find the most affordable and coverage.

Chances are your current car insurance company will allow certain modifications. If so, you may first need to have collision and comprehensive car insurance coverage to take advantage of the extra coverage.

However, if your current car insurance company refuses to cover your modified car, you will need to find a company that will.

The good news is that you have plenty of options, and some companies specialize in covering classic, collectible, and modified cars.

However, when you’re adding safety features, improving your car’s appearance, or adapting it for drivers or passengers with disabilities, making any such change to your car will change your rates.

You will likely pay more with a regular car insurance company, but specialty insurance companies may net you savings.

Read on to know more about car insurance companies that allow modifications for your car. If you need to look at quotes from top car insurance companies in your area, enter your ZIP code into our free tool above.

Which car insurance companies allow modifications to your car?

Below are 14 companies that may offer coverage for modified cars. There are some major car insurance companies, but we have included specialty companies: American Collectors, American Modern, Chubb, Grundy, and Hagerty.

Car Insurance Companies That Allow Modifications
Car Insurance CompanyCoverage for ModificationsClassic Car or Collector Car Insurance Coverage
AllstateYesYes (Hagerty underwrites these policies)
American CollectorsYesYes
American ModernYesYes
ChubbYesYes
FarmersYesYes
GEICOYesYes
GrundyYesYes
HaggertyYesYes
NationwideYesYes (works with Hagerty)
New Jersey ManufacturersYesYes (works with American Modern)
ProgressiveYesYes
SafecoYes (modified collector cars)Yes (you can insure a classic car by itself)
State FarmYesYes
USAAYesYes
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From the regular car insurance companies, Allstate and Farmers offer custom parts and equipment coverage. State Farm modified car insurance coverage only applies to safety modifications.

To qualify for GEICO’s modified car insurance, you must also have a primary-use vehicle listed on your policy. You also need collision and comprehensive car insurance coverage.

Also, many companies listed here will allow you to use the agreed value for a classic car. Companies that cover modifications also offer agreed value for the equipment.

That means they will pay you the agreed-upon amount if your car is totaled.

Which car insurance companies don’t allow modifications?

The following table shows the car insurance companies that don’t allow modifications of any kind:

1Car Insurance Companies That Don’t Allow Modifications
Car Insurance CompanyCoverage for ModificationsClassic Car or Collector Car Insurance Coverage
21st CenturyNoYes
AAANoYes
American FamilyNoYes
Amica MutualNoNo
Auto Owners InsuranceNoYes
ErieNoYes
EsuranceNoYes
GermaniaNoNo
KemperNoNo
Liberty MutualNoYes
Mercury InsuranceNoNo
Plymouth RockNoYes (in Massachusetts and New Jersey)
Shelter InsuranceNoNo
Tennessee FarmersNoNo
The Hanover Insurance GroupNoYes (works with American Modern)
The HartfordNoYes
West BendNoYes
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Please note that Shelter offers no specialized insurance, but most of the other companies listed here do provide classic car insurance coverage.

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How much does modified car insurance cost?

Here are some average annual rates for the auto insurance companies that cover modified cars:

Car Insurance Companies That Allow Modifications: Car Insurance Rates

Car Insurance CompanyAverage Annual Rates
Allstate$1,976.24
American Collectors$1,004.40
American Modern$1,481
Chubb$2,080
Farmers$1,366.60
GEICO$1,295.40
Grundy<$1,000
Haggerty$1,200
Nationwide$1,896.67
New Jersey Manufacturers$1,189.75
Progressive$1,765.62
Safeco$1,188
State Farm$1,285.90
USAA$1,282.83
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A few quick notes to be aware of before you buy auto insurance from car insurance companies that allow modifications:

  • Haggerty’s minimum yearly rate is listed here.
  • NJM’s Policyholders in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania can take advantage of the insurer’s classic and collector car insurance program.
  • Full coverage with Allstate, Esurance, GEICO, and other regular insurers does not include extra coverage for classic, collectible, or modified cars. However, rates for classic cars might be a little over half of what you can expect to pay for regular vehicles.

Of course, the cost of your modified or classic car insurance depends on the following factors:

  • The make of the car
  • Your car’s age
  • How expensive the modifications are
  • How often you will drive the car

You can save money by driving your modified cars less. You also can save with discounts. Companies like Safeco and Allstate will also offer you discounts to go along with their classic auto insurance.

For example, Safeco offers a diminishing deductible for claims-free cycles and a low mileage discount.

However, choosing an agreed-value policy will increase your rates.

How to Determine Your Modified Car Insurance Rates

It is much harder to determine how high your yearly car insurance rates will be for a modified car.

Your standard auto insurance policy depends on various factors, like your age, the model of your car, and your driving record. The cost of modified car insurance may depend on those factors, plus the total cost of the modifications you made.

In most cases, a modified car requires more coverage. That means your monthly and yearly rates will be higher than they would with a standard car insurance policy.

However, you might get some discounts by adding specific safety or anti-theft features to your car.

Generally, when anyone talks about insurance costs for modified cars, they use percentages. For instance, your monthly rates might be up to 10% of your modified car’s value.

Otherwise, you might have to set up an agreed value arrangement with your insurance company.

How to Find Extra Savings With Specialty Car Insurance Companies

As you can see from the third table, you can save on modified car insurance by buying a policy from a specialty car insurance company.

For instance, American Collects claims that it can save policyholders up to 40% compared to a standard personal car insurance policy. American Collector policyholders can take advantage of discounts for garaging, safe driving, multiple vehicles, and high-value vehicles.

Industry-leading insurers like Allstate may extend some of their regular discounts to your modified car, but specialty companies offer discounts on top of their low rates.

You may enjoy the most savings with American Modern. It offers discounts for four types of anti-theft devices, taking a defensive driving course, and belonging to a qualifying car club. All told, you might be able to save up to 45% with American Modern insurance.

Top Tips for Drivers Looking for Modified Car Insurance

Here is what you can do to find affordable car insurance if you modify your existing vehicle or buy a modified car:

  • First, talk to your insurance agent or company: An insurance agent can tell you about the types of modifications your insurer allows and give you quotes for a modified vehicle based on various factors.
  • Get any rates in writing: If you decide to get quotes from car insurance companies that allow modifications, get them in writing. Insurance companies are obligated to honor those rates should you choose their car insurance.
  • Make sure that the modifications you get are legal: State regulations vary, and you should at least comply with regulations in your state.
  • Only get modifications from reputable shops: The best customization shops will keep abreast of state regulations, as well.
  • Be honest with your car insurance company: Tell your insurer about any modifications your car has so it can assess the risk of covering your vehicle. Otherwise, it might not cover a claim or drop your coverage after an accident.

Ultimately, weigh the costs of customizing your car against any potential benefits and shop around with multiple car insurance companies that allow modifications before you buy.

Look up car insurance rates for top insurers in your area with our free quote tool below. Enter your ZIP code to get started.

For more information on modified car insurance coverage and how to save if your modifications are necessary, read our FAQ section below.

Frequently Asked Questions: Car Insurance Companies That Allow Modifications

Here are some answers to questions you may have about car insurance companies that allow modifications:

#1 – What counts as a car modification?

A modified car is a car with alterations to improve its performance, improve its aesthetic appearance, make it safer, or make it more accessible for drivers or riders. Car modifications include the following:

  • Getting a custom paint job.
  • Adding custom wheels, rims, and hubcaps.
  • Upgrading a stereo system. That includes changing the radio and adding extra speakers.
  • Adding a supercharger or turbocharger to an engine.
  • Upgrading the fuel system.
  • Adding equipment to a car for people with disabilities.
  • Adding safety or anti-theft features.
  • Installing a bike rack in the back of the car.
  • Adding a luggage rack on the roof of the car.

Even adding a tint to windows or getting aftermarket replacement parts will count as modifications. However, it may be illegal to tint your windows past a certain point, so make sure you check regulations in your state:

  • In Ohio and North Dakota, you can tint your entire windshield, but other states will not allow this.
  • Most states prohibit tints on windshields from extending below the AS-1 line.
  • Some states also prohibit tinted windows on the driver-side and front-passenger windows.

When legally allowed, tints must meet a minimum level of visible light transmission. In many cases, that is 70% or above.

#2 – What types of modifications will your car insurance company cover?

Your car insurance may usually cover the following types of modifications:

  • Anti-theft features
  • Bicycle racks
  • Chrome exhaust systems
  • Leather seats
  • A muffler that makes your car quieter
  • Roof racks
  • Safety cameras
  • Spoilers
  • Sunroofs
  • Tow bars

You may need to add on additional coverage for:

  • Modifications that change your car’s appearance: That includes a custom paint job, custom tires, rims, and spinners, and a racing harness.
  • Improvements for your car’s performance: That includes a turbocharged engine or engines that use nitro or hydrogen fuel.
  • Entertainment editions: That includes upgrades to your stereo system, adding a computer, or adding a DVD system.

In most cases, your car insurance will not cover adaptive modifications for disabled drivers or riders outside of add-on coverage. However, according to the National Highway Traffic Safety Administration, your car insurance may cover the costs of modifications if you were disabled in a car crash.

In any event, talk to an agent and ensure that you have coverage before making any changes to your car.

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