Car insurance premiums are determined based on several factors. Interior upgrades can cause your insurance premiums to increase because they increase the value of your vehicle. The insurance company will consider how much it would cost to replace or repair your vehicle so that it maintains its current value. If you install expensive upgrades throughout the interior, the insurance company will have to increase your rates to cover the additional value that has been added to the car. Interior upgrades also make your car a more enticing target for thieves who can make more money selling the upgrades in your car than they would if they stole a car that only had stock interior parts.
Expensive Audio Systems Entice Thieves
One of the most common interior upgrades that can increase your car insurance premiums is a high-end audio system. Audio systems can be very expensive and bring a high price when they are resold. It is difficult to conceal the fact that your car is equipped with the best audio system because anyone can see the stereo when they look through the car windows. This increased risk of theft will cause your insurance rates to go up because the insurance company will place you into a higher risk category. If your car is at a higher risk to be stolen or damaged, the insurance company has to cover that risk by charging you more for your car insurance premiums.
Upholstery Upgrades are Expensive to Repair
Many interior upgrades include changing from fabric or vinyl seats to leather. Some interiors can also be upgraded with wood dashboards and high-tech features. The more expensive an interior upgrade is to purchase, the more expensive it will be to replace. Many of the expensive upholstery upgrades require a higher level of care in order to maintain their original beauty. There is an increased risk that these interior upgrades will be damaged through normal wear and tear, which would cause the car owner to file a claim with the insurance company for repairs to the interior. Any time the likelihood of a claim is higher, the insurance premiums will be higher too.
Interior upgrades add value to the entire car. When an owner spends extra money to make his or her car more unique, that car becomes more expensive to insure. If you install interior upgrades, your insurance company will need to create a new vehicle value assessment so that the insurance you carry will be adequate if there is ever a problem. Car insurance premiums are meant to provide the proper amount of protection for theft or damage, so it is in your best interest to make sure the car is assessed properly.