Guides
Custom parts and equipment coverage
Why a standard policy pays little for lift kits, custom wheels, wraps or audio gear, and how custom parts and equipment coverage fills the gap.
Custom parts and equipment coverage pays to repair or replace things you added to your car after it left the factory, such as aftermarket wheels, a lift kit, a sound system or a custom paint job. A standard policy values your car roughly as the manufacturer built it, so modifications are often covered only up to a small amount or not at all. If you have put real money into upgrades, this add-on is how you get that money back after a crash, theft or storm.
Why a standard policy undervalues modifications
Collision and comprehensive coverage pay the actual cash value of your car, which insurers estimate from what comparable vehicles sell for. Comparable vehicles are stock vehicles. A $4,000 set of wheels and a $3,000 suspension lift rarely show up in valuation data, and the used-car market rarely pays dollar for dollar for them anyway.
The result is a gap that shows up in two ways:
- Partial losses. If someone sideswipes your truck and ruins two custom wheels, the insurer may only owe the cost of equivalent stock wheels unless your policy covers custom equipment.
- Total losses. If the truck is totaled or stolen, the settlement is built from comparable stock trucks. Your upgrades disappear from the math.
Many personal auto policies include a modest amount of automatic coverage for permanently installed custom equipment and exclude the rest. The exact amount and wording differ by insurer and by state, so the only reliable answer is your own policy form and declarations page.
How the coverage works
Custom parts and equipment (CPE) coverage is usually an endorsement added to a policy that already carries comprehensive and collision coverage. It raises the dollar limit available for added equipment. Progressive, for example, describes its CPE coverage as helping pay to repair or replace items you add to modify your car, such as a stereo, navigation system, custom wheels or a paint job, and says the coverage "typically has a $5,000 limit" (Progressive coverage overview, as of October 2026). Other insurers use different limits and names, and some specialty insurers handle heavily modified vehicles under separate programs.
A few mechanics matter when you file a claim:
- It follows the underlying coverage. Custom equipment damaged in a crash is paid under collision; equipment stolen or damaged by hail is paid under comprehensive. If you dropped either coverage, the matching CPE protection usually goes with it.
- Your deductible still applies. CPE does not usually add a second deductible, but the loss is subject to the deductible on the coverage that pays.
- Payouts may be depreciated. Unless the endorsement says replacement cost, expect the insurer to account for the age and wear of the part, the same way it would for the rest of the car.
- The limit is a ceiling. If you have $11,000 of upgrades and a $5,000 limit, the most you collect for the upgrades is $5,000.
What usually counts as custom equipment
Insurers generally define custom equipment as permanently installed equipment, furnishings or finishes that alter the appearance or performance of the vehicle and were not installed by the manufacturer. Typical examples:
| Usually treated as custom equipment | Usually not covered by CPE |
|---|---|
| Aftermarket wheels and tires (beyond stock size or value) | Phones, tablets and portable GPS units |
| Lift kits, leveling kits, upgraded suspension | Tools and work equipment you carry (often a business or homeowners policy question) |
| Permanently installed audio and video systems | Loose personal items in the car |
| Custom paint, murals and vinyl wraps | Racing use and parts damaged during track events |
| Bed covers, toolboxes bolted to the bed, winches, light bars | Items not permanently attached |
| Body kits, spoilers, custom grilles | Equipment you did not disclose, depending on the policy |
Dealer-installed options are a gray area. Some insurers treat items the dealer added before you bought the car as part of the vehicle; others treat them as custom equipment. Ask before you assume.
Adaptive equipment for drivers with disabilities, such as hand controls or wheelchair lifts, is handled differently by different insurers. Some include it automatically; others require it to be scheduled. If your car carries this kind of equipment, ask the insurer to put its treatment in writing.
A worked example
Say you own a pickup worth $30,000 in stock condition and have added a $3,500 lift kit, $2,800 in wheels and tires, and a $1,700 light bar and winch setup, for $8,000 in upgrades. Your collision deductible is $1,000. Assume the policy includes $1,000 of automatic custom equipment coverage.
| Scenario | Without added CPE | With a $5,000 CPE limit |
|---|---|---|
| Truck is totaled | About $30,000 for the truck plus up to $1,000 for upgrades, minus the $1,000 deductible: roughly $30,000 | About $30,000 for the truck plus up to $5,000 for upgrades (less any depreciation), minus the deductible: up to roughly $34,000 |
| Upgrades you never recover | About $7,000 | About $3,000 |
These figures are hypothetical, and depreciation on older upgrades will reduce the custom equipment payment. You can test your own numbers with the total loss payout estimator.
How to make sure you can collect
- Tell the insurer about the modifications when you buy or change the policy. Undisclosed changes can lead to disputes, and performance modifications can affect whether an insurer will write the policy at all.
- Keep receipts and installation invoices. Store copies outside the car, along with the part numbers.
- Photograph the upgrades. Take dated photos from several angles, including close-ups of serial numbers on audio equipment.
- Match the limit to what you have spent. Add up the replacement cost of everything you would want back, then compare it with the limit available. Revisit the number each time you add parts.
- Ask how parts are valued. Find out whether the insurer pays replacement cost or depreciated value, and whether it will pay for labor to reinstall equipment.
When the coverage is worth buying
CPE coverage makes the most sense when your upgrades are worth more than the automatic allowance in your policy and you would replace them after a loss. Off-road trucks, show cars, vehicles with high-end audio systems and cars with full wraps are the usual candidates.
It makes less sense when the upgrades are cheap, old, or something you would not reinstall. If your car is mostly original but has collector value, a classic or collector policy may be a better fit than a standard policy with CPE added; see classic and collector car insurance. If your concern is the quality of replacement parts on a stock car rather than added equipment, read Aftermarket vs OEM parts in insurance repairs instead.
For how total-loss payouts are built in general, see how insurers calculate actual cash value.
Key takeaways
- Standard collision and comprehensive coverage pays a stock car's value; aftermarket upgrades are covered only up to a small allowance, if at all.
- Custom parts and equipment coverage raises that allowance; Progressive says its version typically has a $5,000 limit.
- The coverage depends on having comprehensive and collision, uses your existing deductible, and may pay depreciated value.
- Disclose modifications, keep receipts and photos, and resize the limit when you add parts.