Compare Best Car Insurance Companies That Allow Modifications [2023]
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
Founder & CFP®
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...
Founder & CFP®
UPDATED: Jun 20, 2023
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UPDATED: Jun 20, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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 Company | Coverage for Modifications | Classic Car or Collector Car Insurance Coverage |
|---|---|---|
| Allstate | Yes | Yes (Hagerty underwrites these policies) |
| American Collectors | Yes | Yes |
| American Modern | Yes | Yes |
| Chubb | Yes | Yes |
| Farmers | Yes | Yes |
| Geico | Yes | Yes |
| Grundy | Yes | Yes |
| Haggerty | Yes | Yes |
| Nationwide | Yes | Yes (works with Hagerty) |
| New Jersey Manufacturers | Yes | Yes (works with American Modern) |
| Progressive | Yes | Yes |
| Safeco | Yes (modified collector cars) | Yes (you can insure a classic car by itself) |
| State Farm | Yes | Yes |
| USAA | Yes | Yes |
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:
| Car Insurance Company | Coverage for Modifications | Classic Car or Collector Car Insurance Coverage |
|---|---|---|
| 21st Century | No | Yes |
| AAA | No | Yes |
| American Family | No | Yes |
| Amica Mutual | No | No |
| Auto Owners Insurance | No | Yes |
| Erie | No | Yes |
| Esurance | No | Yes |
| Germania | No | No |
| Kemper | No | No |
| Liberty Mutual | No | Yes |
| Mercury Insurance | No | No |
| Plymouth Rock | No | Yes (in Massachusetts and New Jersey) |
| Shelter Insurance | No | No |
| Tennessee Farmers | No | No |
| The Hanover Insurance Group | No | Yes (works with American Modern) |
| The Hartford | No | Yes |
| West Bend | No | Yes |
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 Company | Average 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 |
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
Can I modify my car and still get insurance coverage?
Yes, many car insurance companies allow modifications to vehicles and provide coverage for them. However, the specific modifications that are covered and the extent of coverage can vary among insurance providers.
What types of modifications are typically covered by car insurance companies?
Common modifications that are often covered include changes to the engine, exhaust system, suspension, body kit, wheels, and audio systems. However, it’s important to check with your insurance provider to confirm which modifications they cover.
How can I find the best car insurance companies that allow modifications?
To find the best car insurance companies that accommodate modifications, consider the following steps:
- Research and compare insurance providers that explicitly mention coverage for modified vehicles.
- Check customer reviews and ratings to gauge the quality of service and claims handling.
- Evaluate the flexibility of coverage options and the specific modifications each company allows.
- Obtain quotes from multiple insurers to compare prices and coverage terms.
Are there any limitations or restrictions on modifications that insurance companies impose?.
Yes, insurance companies may impose limitations or restrictions on modifications. Some common restrictions include modifications that increase the vehicle’s speed capabilities, significantly alter its appearance, or affect its safety features. Additionally, certain modifications may require additional coverage or attract higher premiums
Can I add modifications to my car after purchasing an insurance policy?
It depends on the insurance provider. Some companies allow you to add modifications to your coverage mid-policy, while others may require you to notify them before making any modifications. It’s best to inform your insurance provider in advance to ensure your modifications are adequately covered.
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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Joel Ohman
Founder & CFP®
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...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.