Glossary

Custom parts and equipment coverage

Optional coverage for aftermarket add-ons and modifications, such as custom wheels, stereos and lift kits, beyond a standard policy's small allowance.

Also called: CPE coverage, custom equipment coverage, aftermarket equipment coverage

Custom parts and equipment (CPE) coverage protects things added to a car that did not come from the factory, or that replaced factory parts with upgrades: custom wheels and tires, upgraded sound and navigation systems, lift kits and suspension work, performance parts, custom paint and graphics, running boards, bed covers and similar items.

A standard policy values your car roughly as built, so add-ons are often covered only up to a small amount, or not at all. CPE coverage is sold as an endorsement that raises that amount. It usually requires comprehensive coverage and collision coverage and pays under their terms and deductibles. Progressive, for example, says its custom parts coverage is typically limited to $5,000. If $8,000 of upgrades are stolen and your policy covers $1,000 of custom equipment, you absorb the rest.

Keep receipts and photos of each modification, and tell your insurer when you add something expensive; undisclosed modifications can cause disputes after a claim. For a heavily modified or collector vehicle, an agreed value policy from a specialty insurer may fit better than adding CPE to a standard policy.

Last reviewed October 4, 2026

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Related terms

Endorsement A written amendment to an insurance policy that adds, removes or changes coverage, such as rideshare use, rental coverage or OEM parts. Comprehensive coverage Pays for damage to your car from causes other than a crash, such as theft, fire, hail, flood, falling objects, vandalism or hitting an animal. Collision coverage Pays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible. Agreed value Coverage where you and the insurer set a car's value when the policy is written, and that amount is paid if the car is totaled, with no depreciation. Actual cash value What a car was worth just before a loss — replacement cost minus depreciation — and the basis of most total-loss payouts.

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