How does wrapping a car affect insurance?

Car wraps are becoming increasingly popular amongst motorists and car enthusiasts. If you're looking to spruce up your vehicle's exterior but don't want to pay for a new paint job, you may want to consider investing in a car wrap. But before moving ahead with your vinyl car wrap, you need to consider how this modification impacts your car insurance. Stick around for more info.

What is a vehicle wrap, and why is it popular?

Vehicle wrapping involves covering a car with a specific film that can modify the colour or provide extra protection to the vehicle's paint job beneath. But that's not all. Beyond changing the aesthetic appearance of your vehicle, wraps can do the following:

• Protect the body of the car from scratches: Scratches and other forms of superficial damage to your vehicle can be easily prevented by investing in a wrap.
• Business purposes: Do you use your car for business purposes? With a wrap, you can inform members of the community about what you do and give them a way to notify you.
• Protect paint: Over time, the paint on your vehicle can fade due to UV rays. With a vehicle wrap, you can protect the integrity of your car from signs of aging.

How does getting a car wrap impact your insurance?

So, does modifying a vehicle affect insurance? Generally, any modification that alters the performance of your vehicle should be reported to your insurance company. However, in this case, you will also want to notify your car insurance provider that you have a wrapped vehicle.

Vehicle wraps can be expensive. Because of this, your wrapped car could increase in value, which would need to be recorded by your insurance provider in case you are in a car accident, so that you can be fairly compensated for your losses. At the same time, wrapped vehicles can become a target of vehicle theft, given that vinyl car wraps are highly sought after. Again, without the proper car insurance in place, you could be at risk of being undercompensated when filing a claim or your claim could be denied entirely.

Similarly, modifying a vehicle for accessibility can also increase your insurance premiums and must be reported to your insurance provider, given that your car's resale value will have increased.

Does the colour of your car wrap affect insurance?

Vehicle wraps provide car owners with a unique opportunity to customize the appearance of their vehicles. Whether it be for business purposes, adding a protective layer, or changing the aesthetics of your car, your options really are endless when it comes to choosing a design or specific "paint" colour.

Contrary to what you may have been told, the colour of paint or vinyl wrap won't affect your insurance premiums. So, whether you choose a matte black vinyl wrap, bright pink, or emerald green, what you pay for your insurance policy will not be impacted. Just remember that because your vehicle wrap is increasing the value of your vehicle, having a vinyl wrap, regardless, can increase your costs.

Can I wrap my vehicle myself?

Wrapping a car is a complex process that involves access to original equipment like heat guns, special cutting equipment, and more. While it's possible that you could learn how to wrap a vehicle yourself because you're likely investing a large sum of money into the project, it may be a better idea to partner with a professional body shop. That way, you can ensure that the job is being done correctly.

Are there downsides to wrapping a car?

While wrapping a car offers numerous benefits, there are some potential downsides that you need to be aware of, including:

• An increase in your insurance rates.
• The risk of having your wrap damaged, potentially causing you to replace the entire wrap.
• There is a possibility of voiding your insurance coverage if you fail to notify your insurance provider that you have made these changes to your vehicle.
• Changing your mind and losing money on what you invested in having the vehicle wrapped in the first place.

Are all car modifications legal?

While modifications like car wraps are legal, there are some changes you can't make to your car. Common illegal modifications include:

• Tinted driver and front passenger windows.
• Tinted head or tail lights/changes to the colour of your lights.
• Obscuring or covering license plates is illegal.
• A motor vehicle powered by an engine with internal combustion must have an exhaust muffler that cools and expels exhaust gases from the engine without making loud noises or generating flames or sparks.

What other modifications do I need to inform my insurer about?

If you want to make any changes to your car to improve its performance, we recommend speaking with your insurer beforehand, as it can have significant impacts on your coverage premiums. These changes include:

• Engine modifications.
• Changes to the vehicle suspension.
• Changes to the brakes or brake components.
• Adjustments to the transmission.
• Increasing or reducing tire sizes.
• Window tints.

Protect your wrapped car with quality car insurance

Regardless of whether you drive a vehicle with a car wrap or not, you'll need to protect your ride from various hazards on and off the road with the right car insurance. It's also the law. However, depending on the province or territory you live in, the types of policies and coverage limits required will vary:

Third-party liability

Liability car insurance is a mandatory policy in all provinces and territories. The minimum coverage requirements will vary across Canada. The purpose of this coverage is to protect policyholders in the event they get into a collision that causes bodily injuries or property damage to a third party. Should a lawsuit be filed against them, this insurance coverage will cover the cost of repairs, replacements, medical expenses, legal costs, and more up to your policy limits.

Accident benefits

Accident benefits coverage is mandatory in all provinces except Newfoundland. This insurance coverage covers policyholders if they are in a collision that causes injuries to themselves, their passengers, or pedestrians, regardless of who is at fault. This car policy compensates for medical expenses, rehabilitation costs, lost wages, and other associated costs.

Uninsured automobile insurance

Uninsured automobile insurance is the final mandatory policy required by all Canadian drivers. This policy offers protection to motorists if they are in a collision with an at-fault driver who is either uninsured or underinsured. Protection is also offered should policyholders be hit by a hit-and-run driver.

Optional auto insurance policies

Beyond mandatory policies, when you insure your wrapped car, you do have the option of adding additional coverages to your plan for added peace of mind:

Collision car coverage

Collision car coverage will cover the cost of repairing or replacing your wrapped car if it is damaged in an at-fault collision. Note that when filing an insurance claim, you will need to pay a deductible to your insurance provider before they will cover the remaining expenses.

Comprehensive car coverage

Comprehensive car coverage also covers repairs and replacements of your vehicle. However, unlike collision, it covers you if your car is damaged in a non-collision incident. For example, common perils covered under this insurance include theft, vandalism, severe weather, falling objects, and fire damage. Again, you'll need to pay a deductible to your provider before the remaining costs are covered.

Accident forgiveness insurance

One final type of optional car insurance coverage popular among Canadian drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim.

Note: coverage varies by province.

What other factors does a car insurance company consider when calculating premiums?

So, what other factors beyond your car affect insurance rates? When it's time to renew expired car insurance, your provider will consider several factors to determine your risk profile as a customer. Typically, an insurance agent will consider the following:

• Beyond a vehicle wrap, have you made other mods to your vehicle?
• Your previous insurance history.
• Your driving record for the past couple of years.
• Your age and gender.
• The type of vehicle insurance you want.
• Whether you qualify for discounts.
• Where you live and how much you use your vehicle.

With this information, your insurer will either raise or decrease your rates for the next year.

Are there ways to save on auto insurance even if I have car modifications?

While having a vehicle wrap will play a role in your insurance rates, there are ways you can save on your coverage even after you notify your provider that you have a wrapped vehicle. Here's what to consider:

Bundle your policies

If you have other types of insurance, you may be able to bundle your policies with your provider. Typically, companies offer a bit of a discount when you have more than one coverage option with them.

Ask about discounts

While a car wrap will increase your premium, consider making other changes to your vehicle that make it safer to operate. For example, adding security and dash cameras or even winter tires can help bring your premiums down. Additionally, there may be other discounts available that you qualify for based on your driving profile. So, make sure to ask your insurance agent or broker whether you qualify for any savings.

Compare quotes and policies

Before purchasing coverage, make sure to shop around and compare quotes from different insurance companies. Doing so can help you weigh your options and find a plan that works for your specific needs and budget.

Pay for your insurance upfront

If you're able to do so, consider purchasing your auto insurance upfront rather than monthly. Insurers tack on monthly fees because it costs them money to process your monthly payments. Therefore, to avoid these fees, consider paying for your coverage with a lump sum.

Increase your deductible

Lastly, you may want to consider increasing your deductible. A deductible is the amount you pay when filing a claim before your insurance provider will cover the remaining costs. For example, if you damage your car wrap by scraping your car door on a metal pole, you could file a claim under your comprehensive insurance to have the wrap replaced by your provider.

By increasing your deductible, you're essentially taking on more of a financial obligation in the event a claim is filed. And in turn, your provider may lower your insurance rates slightly.

How BrokerLink can help

Is your car insurance almost expired? At BrokerLink, we help Canadians find affordable insurance coverage. With access to multiple auto insurance policies, our brokers can help customize your coverage to your needs and budget. We can also help answer your questions about renewing car insurance with vehicle wrap modifications, and potentially help you qualify for discounts on coverage for cheaper rates!

And, if you're in the market for a new or used vehicle, check out our free resources about used car prices, what to check when test-driving a used car, and what to consider when buying a used vehicle, so you can make an informed decision about your purchase!

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