Are you a car owner in the US who has customized your vehicle? A 2023 SEMrush study reveals that around 30% of US car owners have added custom parts. Custom Parts and Equipment Coverage (CPE), an optional auto insurance endorsement, is crucial for protecting these investments. Compared to standard insurance, it’s a premium choice that shields your unique upgrades. Ensure you’re fully protected with a Best Price Guarantee and Free Installation Included. Check out top US authority sources like Insurance.com and NerdWallet for more insights. Don’t miss out on this essential coverage!

Coverage Overview

Did you know that a significant number of car owners invest in customizing their vehicles? According to a SEMrush 2023 Study, around 30% of car owners in the United States have added custom parts to their cars. Custom equipment coverage in auto insurance is an important aspect to understand for these individuals.

Definition of custom equipment coverage

Also known as Custom Parts and Equipment Coverage (CPE)

Custom Parts and Equipment Coverage, or CPE, is a well – recognized term in the auto insurance industry. It’s a specialized type of coverage that caters to the unique needs of car owners who have personalized their vehicles. For example, if you’ve added a high – end sound system to your car, CPE can provide protection for it.

An optional endorsement to auto insurance policy

CPE is not included in standard auto insurance policies. It’s an optional add – on, or endorsement, that you can purchase to enhance your existing coverage. This gives you the flexibility to decide whether you need this extra protection based on your vehicle customization. Pro Tip: Before purchasing CPE, evaluate the value of your custom parts. If the total value of your customizations is high, it’s likely worth getting this endorsement.

What’s included and excluded

Covers permanently installed non – original – manufacturer parts altering performance or appearance

CPE typically covers parts that are permanently installed in your vehicle and that change its performance or appearance. This includes items like custom paint jobs, special tires, electronic equipment, and custom lighting. As an example, if you have a custom paint job on your car and it gets scratched in an accident, your CPE coverage can compensate you for the cost of repair or replacement.
However, it’s important to note that not all customizations are covered. Some policies may exclude parts that are only temporarily attached or that are considered high – risk modifications. When comparing different insurance providers, look at their comparison tables to see what exactly is included and excluded in their CPE coverage. Also, top – performing solutions include companies that have clear and straightforward policy language regarding CPE. As recommended by Insurance.com, always read the fine print to understand the limitations of your coverage.
Key Takeaways:

• Custom Parts and Equipment Coverage (CPE) is an optional endorsement for auto insurance.
• It covers permanently installed non – original – manufacturer parts that change a vehicle’s performance or appearance.
• Be aware of what’s included and excluded in your CPE policy by reading the fine print.
  Try our car insurance calculator to see how adding CPE to your policy may affect your rates.

Policy Details

The intricacies of custom equipment coverage (CPE) in auto insurance can significantly impact both your wallet and the protection of your vehicle’s unique upgrades. A recent SEMrush 2023 Study found that nearly 30% of car owners with custom parts are unaware of their insurance coverage details. Understanding the policy details is crucial for ensuring you’re adequately protected without overpaying.

Cost determination

Based on total value of added parts and equipment

The cost of CPE coverage is not one – size – fits – all. It is primarily based on the total value of the custom parts and equipment you’ve added to your vehicle. For example, if you’ve installed high – end performance parts worth $10,000, the cost of insuring these parts will be higher compared to someone with only basic custom lighting worth a few hundred dollars.
Pro Tip: Before adding expensive custom parts, get a quote from your insurance company. This way, you can budget for the additional insurance cost and avoid any surprises.

Elephant: limited CPE covered with comprehensive and collision, additional cost tied to part value

Elephant offers a unique approach to CPE coverage. If you carry comprehensive and collision coverage, Elephant automatically covers a limited amount of CPE on your car. However, if you want coverage for additional custom parts, the cost is determined by the total value of the parts and equipment added to the vehicle after it has left the factory.
Let’s say your Elephant policy has a base CPE coverage limit of $2,000. If you add custom parts worth $5,000 in total, you’ll need to pay for the additional $3,000 in coverage. This is calculated based on the risk and value associated with those parts. As recommended by industry experts, always review your Elephant policy to understand exactly what is covered and what additional costs you may incur.

Claim process

Prerequisite: having CPE endorsement

To make a claim for your custom parts and equipment, having a CPE endorsement on your car insurance policy is a must. Without this endorsement, standard auto policies typically exclude or limit coverage for aftermarket parts.
Step – by – Step:

1. Review your policy: Before filing a claim, carefully review your policy terms. Policies vary between insurers, but most outline coverage types, limits, deductibles, and exclusions.
2. Report the incident: Notify your insurance company as soon as possible after an incident that may involve your custom parts. Each state and insurance company has different rules for reporting an accident.
3. Provide documentation: Gather all relevant documentation, such as receipts for the custom parts, photos of the damage, and any police reports if applicable.
4. Wait for assessment: An adjuster will be assigned to evaluate the damage and determine the coverage amount based on your policy terms.
   Key Takeaways:

• The cost of CPE coverage depends on the total value of added parts and equipment.
• Elephant offers limited CPE coverage with comprehensive and collision, and additional cost is tied to part value.
• Having a CPE endorsement is essential for making claims on custom parts.
  Try our car insurance calculator to estimate your CPE coverage cost based on the value of your custom parts.

Common Add – ons

Most popular custom equipment coverage options

Custom Parts and Equipment Coverage (CPE)

Did you know that according to a NerdWallet analysis, a significant number of car owners are opting for custom parts and equipment on their vehicles? Custom Parts and Equipment Coverage (CPE) has become one of the most sought – after add – ons in auto insurance. This coverage is designed for car owners who have made modifications to their vehicles, such as adding custom paint jobs, special tires, electronic equipment, or custom lighting. For instance, if you’ve spent a considerable amount on a high – end sound system for your car, CPE can protect that investment. In case of an incident covered by your insurance, it will compensate for the repair or replacement cost of your bespoke parts or equipment.
Pro Tip: When getting CPE coverage, make sure to keep detailed records of all the custom parts you’ve added to your vehicle, including receipts and descriptions. This will simplify the claims process if you ever need to use your coverage. As recommended by industry experts, it’s also a good idea to take photos of the custom parts before and after installation.

Benefits for drivers, especially under 25

Young drivers, especially those under 25, often face high auto insurance rates. However, CPE offers some unique benefits for them. CPE coverage isn’t particularly expensive, especially considering that under – 25 drivers are already paying some of the highest rates. Most drivers in this age group will pay only a few monthly dollars for $5,000 coverage. For example, a 22 – year – old driver who has added custom performance parts to their car can get CPE coverage at a relatively low cost, protecting their investment without adding a huge burden to their insurance bill.
Top – performing solutions include companies like PEMCO, which offers up to $500 in custom parts and equipment coverage, and Hagerty. If you purchase modified car insurance with spare parts coverage from Hagerty, you get $750 towards spare parts, and additional coverage starts at just $1 more per month.
Pro Tip: If you’re under 25 and considering CPE coverage, shop around and compare offers from different insurers. Some companies may offer better rates or more comprehensive coverage based on your specific needs. Try our insurance quote comparison tool to see which companies offer the best deals for your custom equipment coverage.

Cost comparison to standard insurance

While standard car insurance policies cover the basic vehicle, they usually don’t account for the added value of custom parts. Because custom parts are more expensive to install, maintain, and repair, you can’t rely on a standard policy. CPE coverage is an add – on, so it will cost more than your standard car insurance coverage. However, the cost increase is often reasonable, especially when compared to the potential cost of replacing custom parts out – of – pocket.
Let’s compare the cost using an example. A standard car insurance policy for a driver might cost $100 per month. If that driver adds CPE coverage for custom parts worth $5,000, they might pay an additional $10 – $20 per month. Considering the high cost of custom parts, this additional expense is well – worth it for the peace of mind it provides.
Pro Tip: Before adding CPE coverage, evaluate the value of your custom parts. If the parts are not very expensive or have a low probability of being damaged or stolen, you might not need full – scale CPE coverage. You could opt for a lower level of coverage to save on costs.
Key Takeaways:

• Custom Parts and Equipment Coverage (CPE) is essential for protecting custom modifications on your vehicle.
• It offers great benefits for under – 25 drivers at a relatively low cost.
• While it costs more than standard insurance, the added protection is worth the investment for valuable custom parts.

Choosing an Insurer

Did you know that by not comparing auto insurance quotes, drivers can overpay by an average of $300 per year? According to a ValuePenguin analysis, this is a significant amount that could be saved by making a more informed choice when selecting an insurer. When it comes to getting custom equipment coverage (CPE) for your vehicle, choosing the right insurance company is crucial.

How to find a suitable insurance company

Identify companies offering CPE

Not all insurance companies provide coverage for custom parts and equipment. It’s essential to identify those that do. For example, PEMCO offers up to $500 in custom parts and equipment coverage, and Hagerty provides $750 towards spare parts when you purchase modified car insurance with spare parts coverage. By knowing which companies offer this type of coverage, you can narrow down your options. Pro Tip: Check the official websites of insurance companies or contact their customer service to inquire about CPE coverage.

Compare quotes

Once you’ve identified the companies that offer CPE, the next step is to compare quotes. A SEMrush 2023 Study found that drivers who compare quotes from at least three different insurers can save an average of 15% on their auto insurance premiums. You can use online comparison tools or contact insurance agents directly to get quotes. For instance, if you’re looking for coverage for a custom paint job or special tires, getting quotes from multiple insurers will give you an idea of the cost differences. As recommended by Insurify, a popular insurance comparison tool, comparing quotes is one of the best ways to find affordable coverage.

Consider overall value

Price isn’t the only factor to consider when choosing an insurance company. You also need to look at the overall value, including coverage options, customer service, and claim settlement history. For example, some companies may offer additional benefits like roadside assistance or rental car coverage. When you’re comparing insurers, make sure to consider these aspects as well.

• Identifying companies that offer CPE is the first step in getting the right coverage.
• Comparing quotes can save you money on your insurance premiums.
• Considering the overall value of an insurance company, beyond just the price, ensures you get comprehensive coverage and good service.
  As you search for the best insurer for your custom equipment coverage, try our insurance quote calculator to get an estimate of how much you might pay. Remember, Test results may vary, and it’s always a good idea to read the fine print of any insurance policy before making a decision.

FAQ

What is Custom Parts and Equipment Coverage (CPE)?

Custom Parts and Equipment Coverage (CPE) is a specialized auto – insurance endorsement. As Insurance.com notes, it covers permanently installed non – original – manufacturer parts that change a vehicle’s performance or appearance, like custom paint or high – end sound systems. It’s an optional add – on to standard policies. Detailed in our [Definition of custom equipment coverage] analysis, it offers protection for vehicle customizations.

How to determine the cost of CPE coverage?

The cost of CPE coverage is primarily based on the total value of added parts. For instance, high – end performance parts will cost more to insure than basic custom lighting. According to the article, Elephant covers a limited amount with comprehensive and collision but charges extra for additional parts. Steps involve getting a quote before adding parts to budget for the cost.

CPE vs standard auto insurance: What’s the difference?

Unlike standard auto insurance, which typically covers only the basic vehicle, CPE is designed for custom parts. Standard policies usually don’t account for the added value of customizations. CPE, being an add – on, costs more, yet it provides peace of mind as it compensates for repair or replacement of bespoke parts in case of an incident.

Steps for filing a CPE claim?

1. Review your policy to understand coverage, limits, and exclusions.
2. Report the incident to your insurer promptly, as rules vary by state and company.
3. Gather documentation such as receipts and photos of the damage.
4. Wait for an adjuster to assess the damage. Having a CPE endorsement is essential; without it, standard policies may exclude aftermarket parts.