So you’re thinking about getting your vehicle wrapped and curious how doing so might impact your auto insurance coverage and payments.
Let’s discuss.
FIRST LET’S RECAP: WHAT IS A VEHICLE WRAP?
A vehicle wrap is a vinyl covering applied over your vehicles paint. They can be applied to any type of vehicle including cars, trucks, vans, trailers or an entire fleet of vehicles.
Vehicle wraps are typically organized into 1 of 2 categories:
1. Commercial Vehicle Wraps: which are meant for advertising your business or brand.
2. Color Change Vehicle Wraps: which allow you to update the cosmetic/aesthetic look of your vehicle
SO, WHAT IMPACT DOES A VEHICLE WRAP HAVE ON AUTO INSURANCE?
First a friendly word of advice: if you wrap your vehicle, you must inform your insurance company.
Why?
Auto insurers need to know about any modifications to your vehicle that can have an impact on the level of attention your vehicle receives, especially if:
1. The vehicle wrap is for commercial use such as advertising a business. This may change the classification of your vehicle as a commercial vehicle.
2. The wrap changes your car’s colour significantly. Usually this is just noted in your policy without any significant impact unless the color changes are flashy enough to increase theft risk.
Not disclosing this could affect auto insurance claims since insurers could say you misrepresented your car.
In some cases, your auto insurance premiums may rise if your insurer sees more exposure and liability risk.
DOES AUTO INSURANCE COVER THE WRAP ITSELF?
Yes. Vehicle wraps are covered by auto insurance as long as it’s noted in your policy (see above).
A standard auto insurance policy covers your vehicle but not necessarily aftermarket modifications, something vehicle wraps can often be considered, which makes it important that your auto insurer is informed.
DO VEHICLE WRAPS IMPACT THE COST OF AUTO INSURANCE?
Having a wrap installed on your vehicle could potentially increase your insurance premiums slightly.
Vehicle wraps can cost anywhere between $500–$5,000+ depending on quality and whether it’s a full wrap or partial wrap.
So if the vehicle wrap is insured as a modification, premiums may increase slightly to cover the added replacement cost your insurance company would be covering.
If uninsured and damaged, replacement of your vehicle wraps is out of pocket.
LET’S RECAP, WHAT ARE THE BEST PRACTICES WHEN IT COMES TO VEHICLE WRAPS AND AUTO INSURANCE?
Notify your insurer about your vehicle wrapping asap.
Get it added as a modification to your auto incidence policy if you want coverage.
If using the vehicle wrap for business promotion, ask your insurer whether you need a commercial auto policy or if you can stick with your personal policy.
Keep receipts and photos of the wrap for proof of value.
Learn more about common questions related to vehicle wraps here.
1 Hour Signs Niagara is located at 626 Welland Ave in St. Catharies. We proudly serve the Niagara area with everything people need to promote their business or event. We specialize in signs, printing, vehicle wraps and so much more.
