A basic auto policy is designed and priced so that it only
covers certain vehicle features. It is important to understand that you might
have need extra coverage to take care of expensive vehicle options such as custom
or electronic property.
Factory Options
Factory installed vehicle options are included in the vehicle
identification and symbol numbering scheme used by most insurance companies.
(Note: if you're not familiar with these terms, please read "Do You Know
About Auto Symbols?"). While traditional features are accounted for and
covered by an auto policy, manufacturers sometimes jump ahead of insurance policy
designers. In the past, theft deterrent car radios installed by the factory
(which are disabled when removed from the dash board) were not covered by many
auto policies. It is important to read your particular auto policy to make sure
that it doesn't contain this gap in coverage.
Dealer Options
Factory installation does not apply to autos that are modified
by a conversion specialist or an auto dealer before being displayed for sale.
Car dealers frequently add options to make their inventory more attractive to
car buyers (and more profitable). Spoilers, body side moldings, special wheels
and hub caps, body paint, car phones, speakers and stereos, pin stripes and
conversion packages can be added directly onto the dealer invoice. Insurers
cannot adjust their premiums for these additional features unless they're told
about them, including how much they cost. If you're not sure what is original
and what has been added, ask your local dealer. If the information on options
is not shared with the insurer, the unknown options may not be covered after
a loss.
What Are Your Options?
You can ignore the whole issue, but you risk the chance
that some of your valuable property may be uninsured. The prudent choice is
to share your information with your local insurance professional. Together,
you can take the steps to get the coverage you need. Remember, even when options
aren't covered by a basic policy, you can arrange to add the necessary protection.
Revised 05/00
410f003
COPYRIGHT: Insurance Publishing Plus, Inc. 2000
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