Custom Parts and Equipment (CPE) coverage is an optional auto insurance add-on that may help pay to repair or replace certain aftermarket modifications and upgrades installed after a vehicle’s original purchase. Standard auto insurance policies generally cover a vehicle in its original manufactured condition, so custom additions may require a separate CPE endorsement.
What do custom parts and equipment coverage include?
CPE coverage may help cover vehicle modifications such as:
- Custom wheels or rims
- Aftermarket audio or entertainment systems
- Lift kits or suspension modifications
- Custom paint or bodywork
- Performance upgrades
Coverage availability and eligible modifications can vary by insurer and policy. Drivers shopping for modified car insurance should ask their agents which upgrades qualify for aftermarket parts coverage and whether coverage limits or deductibles apply.
Why is standard coverage often not enough?
A standard auto insurance policy typically pays based on the vehicle’s actual cash value in its original manufactured condition. Aftermarket modifications may add value that is not reflected in the base policy. Without CPE coverage, a claim payment following a covered loss may not fully account for the money invested in those additions.
The Insurance Information Institute explains an auto policy pays for losses as defined by the policy and that each type of coverage addresses specific risks. Drivers wondering, “Does car insurance cover aftermarket modifications?” should review their policy terms and ask about available endorsements.
How is CPE coverage added to a policy?
Custom parts and equipment coverage is typically added to an existing auto policy through a CPE endorsement. Coverage limits, premiums and eligible modifications can differ among insurers. Drivers should keep receipts, photographs and installation records for their upgrades, then discuss those additions with their insurer when purchasing or renewing coverage.
For additional information about covering specialized items, read what is special equipment coverage in the Infinity Insurance Agency, Inc. (IIA) Knowledge Center.
Find affordable auto insurance options
Your custom ride deserves an insurance policy that reflects how you use it and what you have invested in it. IIA works with more than 20 insurance carriers, giving you an opportunity to compare available coverage and flexible payment options in one place. Our Spanish-bilingual agents can also help you explore carriers that may accept alternative identification, including a matrícula consular or foreign driver’s license, depending on the state and carrier requirements.
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