Getting insurance for your upgraded car audio is usually the right choice. I researched a few companies that offer coverage for car audio systems to find out how much car audio insurance costs, so let me share the results.
#1. Progressive offers car audio insurance if the value of the audio systems exceeds $1,000. An additional monthly premium is added to the comprehensive policy, but for the car audio system valued at less than $1,000, it is included in the comprehensive plan.
The quote I received for my car audio system, valued at $2.700, was $66 per year.
#2. Allstate offers several options with higher premiums, depending on the car’s audio value. The quote I have received for my system was $66 annually, but with a per occurrence max. value $1,000.
#3. AARP quoted my car with an annual rate of $1,332 per 12-month policy that includes my upgraded car audio system.
#4. For Clearcover, the annual cost for an additional car audio system ranges between $100 and $200, depending on the car audio system’s value.
If your insurance provider does not offer car audio insurance, the above insurers have coverage levels for car modifications, including car audio updates, but the actual car insurance rates depend on your credit score.
It is necessary to analyze your insurance package and the impact of the additional cost before choosing a plan.
Selecting the right insurance plan will enable you to make claims in an emergency.
Do I Need Sound System Insurance?
Sound system insurance is an add-on to auto insurance that protects modified sound systems. This coverage helps to ensure that you are never put in a position of having to pay the bill for a potentially costly replacement.
The car audio system is one of the most frequently stolen pieces of equipment in the auto industry.
Although there is a visible downtrend, sound system theft is still relatively common, and thieves know the value of an audio system fitted in any type of car.
For instance, it is a fact that The Porsche 718 Cayman and Cadillac XT5 use the Bose brand sound system. Bose is one of the best car sound systems in the world, and it costs a fortune. In case of theft, the cost can offset your pockets. Car audio insurance is the best option for this type of loss.
Aside from theft, automobile upgrades are almost guaranteed. The need to replace an old sound system could be technological or quality-related. Some enhancements may cost an arm and a leg.
On the other hand, an accident or harsh weather conditions can damage your car’s audio system. Having a car sound system insurance comes in handy in such times.
The car’s factory-installed systems are automatically insured if you have comprehensive or collision auto insurance.
However, regular insurance may not cover stereo and audio system modifications, and if they do, the policy limits installation options only to the manufacturer’s installed car audio systems.
Therefore, you must consult your insurance provider before changing your old system.
It is vital to check all probabilities concerning your car audio insurance before purchasing or making changes to your car.
Some insurance companies do not offer protection for sound systems. If you need to change policies, avoid gaps by starting a new plan before canceling the old one to keep your coverage lined up.
What Does Sound System Coverage Include?
Car audio insurance covers damages to the speaker or any other part of the car sound system, even when the rest of the car is not damaged.
However, Electrical-related destructions and detrition are not covered—only specific events like an accident or theft are approved during repayment.
The total value of your car includes your sound system. If your insurance policy covers it, its value will be included in the payout.
Such inclusions are found in both comprehensive and collision insurance coverage.
For most car insurance, the sound system is included as an endorsement or an add-on to the custom parts and equipment cover.
The premium for the cover is usually more affordable compared to the cost of the car sound system. However, the amount never exceeds the $3,000 mark.
How Much Does Audio System Protection Plan Cost?
Several car insurance companies provide full coverage policies, including car audio insurance. However, there are several factors affecting the cost of the policy.
The primary aspect is the model and make of your car. The value of the car stereo will affect how much you pay for the insurance policy.
Other than that, additional rating factors like your location, zip code, credit history, driving history, and claims history will also play a vital role in deciding your premium amount in addition to your car insurance cost.
Here is a list of the four, in my opinion, best auto insurers that provide audio system insurance.
Progressive
Aside from being available in all states, Progressive provides broad coverage for custom car parts under its additional coverage. The insurance pays for the repair or replacement of car equipment, including painting, audio and visual systems, grills, and spoilers.
With broad coverage, car insurance premiums and deductibles are higher because of the magnitude of risks. Nevertheless, Progressive offers perks valued at 30%, including up to $50 worth of deductibles for a six month claim-free period.
Progressive only insures vehicles valued under $150,000. Higher rates are charged for high-performing and sports cars because of increased risks with more horsepower.
Regarding car modifications, it will cost you $1,000 to cover custom parts and equipment/accessory. Therefore, if your audio system changes cost more than $1,000, you will need to buy additional coverage.
In other words, if your new sound system and installation costs $5,000, you will need to buy $4,000 worth of extra coverage for the new equipment.
For additional coverage, Progressive provides gap coverage of 25% of the cash for the totaled car value.
Progressive provides vet bills if your pet is involved in a car accident. It also pays up to 30 days’ worth of money for rideshares as your car is repaired and provides SR-22 coverage.
Furthermore, as a Progressive client, you can buy a cover within your means with the help of their transparent pricing tools.
Additionally, there is accident forgiveness for small claims or for staying claim-free. You will also enjoy discounts valued at 12%, autopay, or homeownership discounts as an owner with multiple cars under the same policy.
The pay cuts include student and teen driver discounts. In addition, loyalty customers with a moving vehicle, no insurance gaps, or cancellations get some perks.
In the standard coverage, Progressive covers you and the other driver for at-fault accidents. It includes car repairs through collision and comprehension and compensates for damages initiated by anything other than a collision, such as fire or vandalism.
The Progressive insurance policy also caters to you and your passenger(s) post-accident medical expenses. It covers your accident-related liabilities like income loss or ambulance rides and protects you when a car accident involves an underinsured motorist.
Clearcover
Clearcover is a virtual insurance company that offers comprehensive and collision coverage for both property and vehicles.
Operations occur in an app with an AI to assist in getting the minimum coverage. It covers theft, vandalism, weather, and property damage from wreckages. However, it does not include new vehicles.
Its services are available in Arizona, California, Illinois, Louisiana, Ohio, Texas, Utah, and Wisconsin. The cover saves drivers $300 to $1,000 of the annual auto insurance premiums.
For Clearcover, comprehension coverage is an additional policy.
The cost ranges between $100 and $200 per year and varies depending on your car’s purchase value, excluding depreciation and deductibles.
Your car cash value is your upper limit of the amount you can claim in comprehensive coverage. When you purchase the comprehension coverage, you will also select a deductible.
Therefore, when your audio system repair cost is $2,000, and your deductible amount is $1,000, Clear cover will cover half your repair cost.
Standard coverage for Clearcover includes at-fault property damage liability for another individual’s property and automobile.
It also offers protection for accidents involving uninsured and underinsured drivers. Finally, it provides medical cover against accidents suffered by another driver while you are walking or biking.
Optional coverages include roadside assistance and $30 worth of transportation costs while your car is at the repair. The pay-ups also include rideshare services.
Clearcover provides ridesharing endorsements for your taxi business from when the app is on until a passenger picks up the ride.
The cover includes several discounts that subsidize premium costs from purchasing anti-theft and safety devices and benefits from combining your home and auto policies.
Special discounts are for homeowners, defensive driving, special-case employment, and military personnel.
The AARP Auto Insurance
AARP is a comprehensive and collision insurance policy that is available in all the states, including DC.
It has a premium rate of $1,332 per 12-month policy. The comprehensive cover protects you from damages not caused by collisions like natural disasters, robbery, and vandalism.
AARP comprehensive insurance cost depends on the driver’s history, vehicle model, age, and deductible amount. Having a higher deductible lowers your premium rate.
For example, if your deductible is $500 and your audio system repair costs are $1,500, AARP will pay $1,000 for the expenses while you will pay $500 out of pocket.
Additionally, it is wise to have a deductible choice based on your car’s actual value.
AARP also gives discounts on deductibles. For example, AARP chooses the highest deductible for claims made for multiple cars insured under the same car owner’s policy.
Deductibles reduce by $100 when an accident is not your fault and you repair your vehicle in an authorized shop Collision deductible is waivered when the accident is not your fault.
If you and all the drivers in your policy have a clean driving record within five years, your rate will not be increased after the first accident. However, some benefits are limited to specific states and depend on whether you meet the requirements.
Allstate
Allstate is available in all 50 states. The premium rate depends on a driver’s profile and location, and standard coverage includes liability protection for injuries and property damage.
It also provides insurance for accidents involving uninsured and underinsured drivers. It also pays for rental cars as your car undergoes repairs and provides medical cover, roadside, and rideshare insurance.
Allstates provides personal injury cover and compressive and collision coverage. For comprehensive coverage, you will choose a deductible to cover your claim.
The maximum amount you can claim is the actual purchase value of your car. Consequently, if your repair costs are worth $3,000 and your deductible is worth $1,000, Allstate will pay $2,000 for your repairs.
Benefits include a reward system for safe drivers. It also consists of a repair shop locator showing a network of servicing shops within a specified location. Furthermore, claims are sent directly to your debit card.
Allstates has several discounts for purchases made as a solution to reduce premium costs. For example, bundling home and auto insurance will give you a 25% discount and a 10% discount on the respective covers.
You will get a 10% discount when you purchase the antilock brakes, and an additional anti-theft device will save you up to a further 5%.
Does Replacing Car Radio Affect Insurance?
An improvement that requires insurance causes permanent changes to the equipment. In addition, adding components to your car’s sound system is a complex process.
It causes modifications to other systems in your vehicle. The alterations impact your car performance, therefore, increasing risks. Consequently, you will need an additional amount of coverage to protect your investment.
To avoid the complexity of such insurance, you should purchase a pre-installed system from the dealership. The advantage of this is that it will not affect your premium rates.
You must consult your insurance provider about changes to your car’s audio system.
Your insurance service provider appraises the new item, analyzes proof of purchase, cost of installation, and the quality of the installation work or degree of the modification, and adds a rider on the item based on their findings.
Damages occurring during installation most probably will not be covered. The premium always goes up for pricey stereo upgrades because the value of your car also includes the quality of your audio system.
The specified value of your system determines the cost of the premium. Ideally, it should be the market value of the sound system.
Overstating your new audio system’s value will not make you get more claims because your insurer will base the value on the actual cost of the replacement or repair.
Underestimating your sound system’s worth may be beneficial for the lower rates, but it will cause you not to get the total value of your stereo when you need a replacement, which is not the best deal, especially if you have a new car.
Furthermore, any modifications to your car must be approved by your insurance provider.
Summary
Car audio insurance is a vital requirement when changing your car’s sound system.
Protection for your car audio system can be warranted by theft, natural disasters, accidents, and wreckage. However, vehicle modifications are not always covered by insurers. Specific stipulations are required for coverage to be approved.
Most standard car policies cover manufacturer-installed systems. However, aftermarket additions must be listed to be insured. Therefore, you need to contact your insurer before making any changes to your car audio system.
The insurance provider determines your eligibility, the coverage limits, and guarantees if modifications are insurable. It is therefore advisable to talk to the insurance agent first.
While the process may seem complicated, it is necessary because modifications affect the car’s value.
The vehicle worth appreciates or depreciates depending on the quality of the added equipment, the installation service, and the impact of the modification on the vehicle’s functioning.