What type of risks does custom coverage usually address?

Custom coverage is specifically designed to address unique or specialized risks that are relevant to the individual policyholder. This type of coverage recognizes that not all drivers have the same needs or risks based on their specific circumstances, such as modifications made to their vehicle, the use of the vehicle for specialized purposes, or activities that may increase their risk exposure.

For example, a policyholder who has outfitted their car with high-performance equipment or uses their vehicle for a business purpose may face risks that standard auto insurance does not adequately cover. Custom coverage can provide tailored protection that aligns with these specific circumstances, ensuring that the policyholder has the right level of insurance to mitigate their unique risks.

In contrast, standard risks common to all drivers do not require customization because they are universally covered under typical auto policies. Risks that require a reduction in insurance payouts or those related to insurance fraud are distinct matters that do not fall within the realm of custom coverage, as they pertain to issues within the insurance industry rather than the unique coverage needs of an individual policyholder.