Can Having a Disability Affect Your Car Insurance? What to Know

If you or a family member has a disability, you have some important considerations when it comes to car insurance, especially if you need vehicle modifications or special adaptive equipment installed in your vehicle.

This guide explains how your needs may affect your coverage, and how to protect against the cost of replacing your vehicle, repairing or replacing vehicle-mounted adaptive equipment, and modifying a replacement vehicle.

No, an insurer can’t deny you coverage or raise your premium solely because you have a disability.

State insurance laws generally prohibit unfairly discriminatory underwriting and rating, though the exact rules vary by jurisdiction.² The Americans with Disabilities Act (ADA) also bars disability discrimination, while still allowing insurers to underwrite and classify risk in ways that comply with state law.³

That means your disability alone can’t legally raise your premium, but your rate may rise for reasons indirectly tied to it.If an insurance company’s actuarial data supports a higher premium due to your actual driving record or the value of your car and equipment, it is legal for them to charge you a higher premium.

To protect adaptive equipment, you usually need custom parts and equipment (CPE) coverage, which is typically added to comprehensive and collision coverage. It pays to repair or replace permanently installed equipment after a covered loss.

CPE coverage protects permanently installed adaptive equipment, including:

• Wheelchair ramps and lifts

• Hand controls, spinner knobs, and steering devices

• Pedal extenders and left-foot accelerators

• Transfer seats and swivel seats

• Reduced-effort steering and braking systems

• Raised roofs, lowered floors, and power doors

The exact CPE coverage available varies by insurer. Some policies include a small amount automatically. But many standard insurance policies will cover little or nothing beyond your car’s original factory equipment unless you add a CPE endorsement or buy a specialty policy. 

You can explore your insurance options and compare rates on Luva.

Are wheelchairs or scooters covered under CPE?

CPE coverage does not protect items that are not permanently attached to your vehicle. Items such as scooters, wheelchairs, or walkers may instead be covered under the off-premises protection in your renters or homeowners policy, not your car insurance. 

However, if another driver causes a crash that damages or destroys these loose mobility or adaptive devices, that driver’s liability insurance may compensate you, up to that driver’s policy limits. If they’re uninsured, your own uninsured-motorist coverage may or may not apply, depending on your state. 

How do CPE limits work?

Standard auto policies typically offer only a small amount of custom-equipment coverage. Progressive, for example, covers the first $1,000 of aftermarket parts under comprehensive and collision coverage, and pays up to $5,000 for custom parts and equipment coverage.⁴

Most carriers also won’t reimburse the full cost to replace your equipment. Instead, they’ll pay out the actual cash value, subtracting depreciation. If you’ve had your car for a while, your insurance settlement could pay just a fraction of the replacement cost.

With modifications costing $20,000, $50,000, or more, depreciation plus low CPE limits could leave you underinsured.

When shopping for coverage, ask your agent about their CPE caps and what valuation methods they offer:

• Agreed value: You and the insurer agree on a set payout amount for the equipment in advance.

• Stated amount: You state the value of the equipment. The insurer pays the lesser of that amount or the equipment’s actual cash value. 

• Replacement cost: The insurer pays to replace the equipment with new, similar parts.

Always read the policy’s valuation provision carefully. These options aren’t available from every carrier, so you may need to shop around. 

In addition to adequate CPE, you may want to consider extended rental reimbursement coverage and roadside assistance.

Extended rental reimbursement pays to rent a suitable vehicle while you shop for a replacement, which can take a long time to find and buy. You may then wait several more weeks while the replacement is modified and adaptive equipment is installed, so a standard rental reimbursement rider may not give you enough time. 

Ask your insurer whether it covers an accessible rental, offers higher daily limits, or reimburses other transportation when an accessible rental isn’t available. 

Additionally, if your disability makes it difficult or impossible to change a flat tire yourself, roadside assistance coverage may be especially important for you. This coverage usually adds only a small amount to your premium. 

Insurance companies vary greatly when it comes to CPE coverage. Here’s what to keep in mind: 

• Premium is only one consideration. Balance premium against the protection you need, so you aren’t underinsured when you file a claim. 

• Work with an agent who has experience with modified vehicles. 

• Get quotes from multiple carriers using the same level of coverage, deductibles, CPE endorsements, and other riders.

• Be precise with your CPE calculations. Use your installer’s invoice as a guide, if it’s recent. 

• Ask about discounts available.

• Bundle your car insurance with other policies from the same carrier, such as homeowners insurance.

• Take a defensive driving course. Many carriers provide a discount to people who complete an approved course.

Questions to ask before buying a policy

Document your equipment and confirm these coverage details:

• Photograph all your adaptive equipment and modifications. 

• Write down specific model numbers and serial numbers. 

• Ask whether the policy pays to remove equipment from a totaled vehicle and reinstall it in a new one. 

• Ask if a separate deductible applies to CPE coverage.

• Confirm coverage for every owner and regular driver.

• Reconfirm your CPE limit at each renewal based on current equipment values and replacement costs.

Though traditional health insurance generally doesn’t cover vehicle modification costs, here are several programs and organizations that may help. 

• Automaker mobility reimbursement programs: Several major automakers often offer reimbursement around $1,000 for adaptive equipment on new purchases or leases, with claim windows that vary by brand.

• Charities and foundations: Nonprofits like NOVA, Chive Charities, and the Triumph Foundation offer grants for vehicle modifications and adaptive equipment, with some organizations prioritizing veterans, spinal cord injuries, or children.

• Nonprofit grants and low-interest loans: State assistive-technology loan programs and disability foundations can help with costs, and members of the National Mobility Equipment Dealers Association (NMEDA) can help you find rebates.⁵

• Tax relief: Some states skip sales tax on adaptive equipment if you have a prescription, and qualifying costs may be tax-deductible if you itemize and your total medical expenses pass the IRS threshold.⁶

• Government programs: The VA offers an allowance and equipment grant for qualifying veterans, while state vocational rehabilitation and Medicaid HCBS waivers may cover modifications for others.⁷