What does custom parts and equipment coverage do?

Custom parts and equipment coverage (CPE) is an endorsement to your car insurance 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, a custom parts and equipment endorsement usually covers:

  • 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 custom parts or equipment are damaged, your insurance 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. In other states, coverage for customized equipment is excluded unless you add the endorsement.

Before adding aftermarket parts to your vehicle, check with your car insurance company to ensure you stay within your current car insurance contract. Some modifications are not permitted and can violate the insurance contract.

author image
Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at Insurance.com.