What does custom parts and equipment coverage do?
Custom parts and equipment coverage (CPE) is an endorsement to your policy that covers permanently installed custom parts or equipment, devices, accessories, enhancements and changes other than those installed by the original manufacturer, that alter the performance or appearance of your vehicle.
Though the endorsement is separate from your collision and comprehensive coverage, it may be subject to the same deductibles.
Policy terms vary, however, customized equipment that generally is covered includes:
- Any dealer-installed equipment that is not offered by the original manufacturer.
- Special equipment such as running boards, brush bars, roll bars, undercarriage lighting, fog lights, bed liners, camper shells, trailer hitches, special roofs, etc.
- Customized wheels – such as alloy or magnesium wheels or wheel overs, aluminum wheels or wire spoke wheels
- Special tires – racing slicks, oversize tires or custom wide-tread tires
- Spoilers, suspensions or performance-related equipment.
- Stereo and sound recording equipment.
- Television and DVD players permanently installed
- Customized paint or decals
- Chrome and reverse chrome
- Aftermarket seats or leather seats not installed by car manufacturer
- Anti-theft devices not installed by car manufacturer
It is also referred to as additional customized parts or equipment, customized parts and equipment, electronic equipment or CPE/accessory coverage.
Is custom parts and equipment coverage mandatory?
No. Custom parts and equipment coverage is not a required coverage.
What happens if I don’t have custom parts and equipment coverage?
If your custom parts or equipment is damaged, your physical damage coverages likely won’t cover them unless you have this coverage. This would leave you personally responsible for the repair or replacement costs.
In some states at least $1,000 of custom parts and equipment coverage is included as part of your physical damage coverages, while in other states coverage for customized equipment is excluded under your physical damage coverages, unless you purchase this additional coverage.
Before adding or changing parts on your vehicle, it is advisable to check with your car insurance company to make sure you are not voiding out your current car insurance contract, and to be certain the parts can be covered under your regular policy or by obtaining a custom parts and equipment endorsement. (To see answers to the most common questions about custom equipment, see "Aftermarket parts: What you need to know.")