If you’re a fan of pimping your ride, here are some things to consider:
Specify any extras
Make sure that any extras or modifications you’ve made to your car are specified in your car insurance policy. In many cases, your insured vehicle value doesn’t include any of the factory-fitted extras added at the sales stage. For instance, a vehicle with a retail value of R250 000 could be worth well over R300 000 thanks to the fancy extras you’ve added such as a sunroof, electric windows, or mag wheels.
This will mean that if your vehicle is stolen, you’ll only receive the retail value (i.e. R250 000) and not be reimbursed for all those add-ons. So, you’ll be R50 000 out of pocket – not a good place for anyone to be.
Another example is a car worth R20 000 that has no security like an alarm system or tracking device, but that contains a sound system worth R150 000. This would carry very high risk and therefore the premiums will be unaffordable. These types of extras would need to be specified and, at some point, the value may not be acceptable to the insurer anymore.
Performance-enhancing modifications
If you’re adding extras to your car, you need to inform your insurer. They then may charge you a higher premium for this extra risk or decide not to cover your car or your enhancements altogether.
The reason for this?
- Due to the enhancements, there’s a higher probability of an accident occurring as you’re able to drive faster than in a car with no enhancements.
- The severity of the accident and the extent of damage caused is also likely to be greater.
- The cost of placing you in the same position as you were before the accident will be higher, as these modifications can be very expensive.
Availability
Finally, consider how available these modifications and extras are in the market. For example, if you look at a car with a unique paint job that took hours for a specialist to do, it’s likely to have cost a load more than the standard paint job the vehicle came out with. For this reason, the cost of redoing the custom paintwork needs to be included in the value of the vehicle insured.
All in all, if you’re a fan of pimping your ride, make sure that absolutely every extra has been specified in your policy so that your car’s current replacement value will be matched. This way if something happens to your pride and joy, we’ll be able to get you back on the road as soon as possible, without putting unnecessary strain on your wallet.
If you need any more information on getting car insurance through Hollard, please call your Hollard-accredited financial advisor.
