Car Wraps and Insurance: What You Need to Know

When considering a car wrap, one common concern among car owners is whether it will void their insurance policy. This article aims to clarify this and other related questions to ensure that you make informed decisions.

Understanding Material Non-Disclosure

No, a car wrap alone will not void your insurance policy. To understand why, it's important to know about the concept of material non-disclosure. This refers to any information that is either not disclosed or significantly changes the risk assessment. In the context of insurance, if the vehicle wrap is deemed to increase risk, or if it significantly impacts the value of the vehicle, it could potentially be considered material. However, in the case of a vehicle wrap, it is rarely if ever considered material.

Disclosure and Policy Implications

When you enter into a contract with an insurance company, you are required to disclose all relevant information. Disclosure includes items such as your driving record, where your vehicle is garaged, who resides in your household, the year, make, and model of the vehicle, and so on. These details are considered material if they are statistically relevant indicators of risk. A vehicle wrap, on the other hand, typically does not increase risk or significantly impact the value of the vehicle. Therefore, it would not be considered material and would not void your policy.

Insurance Policy Considerations

Despite the fact that a car wrap does not generally void your insurance policy, there are other factors to consider:

Accessory Coverage: Some insurance companies may view a car wrap as an accessory. If it is not declared, it might affect your policy. Therefore, it is advisable to report the wrap to your insurer before performing it. This allows for the wrap to be added as a covered approved add-on, ensuring that potential claims can be processed without issues. Premium Adjustments: A car wrap can increase the value of your vehicle, which might lead to higher premiums. It is important to discuss any premium adjustments with your insurer and ensure that the wrap is covered under your policy. Changing Insurance Companies: If you change insurance companies after the wrap, they may change the use classification of your vehicle. For example, changing from a personal-use vehicle to a business-use vehicle could result in a premium increase. It is advisable to disclose the wrap to the new insurer to avoid any misunderstandings or potential disputes. Affected by(color change): A wrap can be considered similar to a color change. If you notice a significant increase in your premiums after the wrap, consider discussing this with your insurer to ensure that the wrap is covered under your policy.

What to Do after Wrapping Your Car

If you decide to wrap your car, here are some steps to follow:

Report to Your Insurance Company: Inform your insurer about the wrap as soon as possible. This allows them to adjust your policy accordingly and provide the necessary insurance coverage for the new look. Maintain Receipts: Keep the receipts for the wrap. This documentation can be useful if you ever need to make a claim related to the wrap. Review Your Policy: Ensure that the insurance company includes the wrap in your policy and that it is covered under your existing insurance. If your policy does not cover it, you may need to add an endorsement or a rider to your policy. Contact Your Insurer: Sometimes, you may need to speak with your insurer to clarify any doubts or misunderstandings regarding coverage. It is always better to be proactive and seek guidance from your insurer.

In conclusion, while a car wrap does not inherently void your insurance policy, it is important to disclose it to your insurer and ensure that it is covered. Proper disclosure and communication with your insurance provider can help prevent any potential issues in the future.