The world of car customization has gone mainstream with TV shows like West Coast Customs, OverHaulin and Pimp My Ride. But when you shell out the cash for your custom 24′s, the widescreen headrest LCD’s and the hood bling, what happens if (when) it gets stolen? Will your car insurance company pay you the actual cash value of your pimped out ride or the original shell of a car it was before you pumped 30 grand into it?
Custom parts and equipment are an often overlooked part of auto insurance, and many consumers mistakenly assume their new spinners are automatically covered by their car insurance policy. You need to know that car insurance companies settle losses on an actual cash value basis, which means they take the cost to replace your car and subtract out depreciation or “wear-and-tear”. If you tricked out your ’83 Olds, you will get paid the actual cash value of your ’83 Olds… which isn’t much. Read the rest of this entry
