Regarding coverage for electronic equipment in a vehicle, which statement is correct?

The statement indicating that coverage applies only if the equipment is factory-installed reflects a common limitation found in many auto insurance policies. Typically, insurers provide comprehensive and collision coverage for electronic equipment that is originally installed by the manufacturer of the vehicle. This is because factory-installed equipment is considered an integral part of the vehicle.

While several policies may offer some degree of coverage for aftermarket electronics, they often come with restrictions. Aftermarket additions may require additional coverage or endorsements, especially if they are more expensive or if they exceed typical factory-installed items. Some insurers set strict limits on coverage amounts for non-factory equipment, which helps to mitigate risk on the insurer's part.

In many cases, this consideration means that if you have equipment installed after purchase, it may not be covered or could be covered only up to a specific limit unless special provisions are in place. Thus, understanding the specifics of your insurance policy is crucial for both the vehicle owner and the insurance provider to ensure that appropriate coverage is in place for electronic equipment.