You have a $30,000 Subaru WRX, but you’ve added $15,000 in turbos, suspension, wheels, and a roll cage. You crash. The insurer offers you $30,000. You are furious. You forgot to declare the mods.
Key Takeaways
- Declared Value is King: If you didn’t tell them about the mods, they don’t exist.
- Receipts are Mandatory: You need proof of what you bought. “I think it’s worth $5k” doesn’t fly.
- Labor is tricky: Some insurers cover the cost of the parts but not the 40 hours of DIY labor you put in installing them.
- Safety Gear is a Mod: Roll bars and cages add value, but they also increase the “Agreed Value” you need to purchase.
The “Why” (The Trap): The Definition of “Vehicle”
In a standard policy, “Vehicle” means the car as it rolled off the factory line.
In a track policy, “Vehicle” means the car plus declared equipment.
If you insure the car for $30k (stock value) to save $50 on the premium, you have effectively self-insured your $15k in mods. The Co-Insurance clause might even penalize you for under-insuring.
The Investigation: Adding Mods to the Policy
I tested the quote engines to see how easy it is to add mods.
Hagerty
- Process: Very easy. You just increase the “Agreed Value.”
- Verification: They may ask for a list of mods if the value exceeds the stock value by a large margin (e.g., +50%).
Lockton
- Process: Similar. You enter the total value.
- The Catch: They explicitly state that the value should include mods. If you crash, and the adjuster sees a stock car value on a highly modded car, they cut the check for the stock value.
Comparison Table: Mod Coverage
| Item | Covered if Declared? | Covered if Undéclared? |
| Engine Parts | Yes | No |
| Aftermarket Wheels | Yes | No (Stock value only) |
| Roll Cage | Yes | No |
| Labor Costs | Varies (Check Policy) | No |
[IMAGE: Spreadsheet screenshot listing parts and costs next to a photo of a modified engine bay]
Step-by-Step Action Plan
- Create a Build Sheet: Open Excel. List every part, purchase date, and price. Keep digital copies of receipts.
- Update Your Value: Before every event, ask yourself: “Did I add anything expensive since last time?” If you added a $3,000 Big Brake Kit, increase your policy value by $3,000.
- Photograph the Mods: Take pictures of the specific parts on the car. In a bad fire, the parts might be unrecognizable. Photos prove they were there.
- Include Tax and Shipping: When calculating value, include the sales tax and shipping you paid. It’s part of the replacement cost.
FAQ
Do mods increase my premium?
Yes, because you are insuring a higher dollar amount. But it is usually linear (e.g., $10 more premium for $1,000 more coverage).
What about discontinued parts?
If a part is rare/no longer made, value it at the current market price for a used replacement, not what you paid for it 10 years ago.
Does a wrap or paint protection film count?
Yes! A full PPF job can cost $5,000. Include that in your agreed value.