There are a lot of car buffs among us who like to customize their vehicles with a new set of wheels and tires, a custom paint job or a high-end sound system. While that money may be an investment in the resale value of your car, it may not transfer to the value of your car in the event of a total loss.
If you are in an auto accident, your insurance company will determine if it will cost more to repair your vehicle than it is worth. If that's the case, it will declare the vehicle a total loss and report it to the state Department of Licensing.
The insurance company will try to establish a fair market value for your vehicle by locating comparable vehicles in where you live and park your vehicle. Even if your car has been customized or has added features, the value of the car may not be as high as you expect it will be in comparison to the cars around you.
Read about what happens if your vehicle is a total loss.