Reader’s Question:

I am just wondering if adding upgrades to my car like new sound systems, pinstriping, or a DVD player, mean additional claim payments with my car insurance policy in Des Moines, IA.

Cynthia

Des Moines, IA

In some cases, your upgrades won’t be covered if you haven’t reported them to your auto insurer and paid extra car insurance premiums. You need to remember that car insurance coverage is based on actual cash value. Many policyholders think that they’ll get a dollar-for-dollar reimbursement after and they forget about depreciation. Anything you do to your vehicle is going to depreciate its value.

But you may argue that you should get credit for any investments you’ve made in your car since that means its value in the marketplace is improved. The best thing to do is to contact your Des Moines, Iowa insurance agent or your auto insurance company and tell them what you’ve done to the car. Your insurance company can then decide if the company needs to increase your coverage and your car insurance rate premium. You’ll want to let your insurance company know, and back up the value with your receipts if you’ve done some heavy investing in upgrading the car, or if you’ve done something like put in a new engine on an older car. So, don’t forget to save the receipts for your car upgrades.

However if the work you’ve done on the car was simply to keep the vehicle in good running condition, you won’t get any additional claim payment. It would just be considered part of the normal vehicle maintenance.