Plenty of people jazz up their vehicles with upgrades, additions, and extras, like new sound systems, pinstriping, or a DVD player, but forget that if your car needs repairs or is totaled, you'll want those investments considered in the value of the car.

In some cases your upgrades won't be covered if you haven't reported them to your auto insurer and paid extra premiums. Dave Hurst of State Farm says, "Your best bet is to contact your agent or your auto insurance company and tell them what you've done to the car. Your insurer can then decide if the company needs to increase your coverage and therefore your premium." That means saving your receipts for your car upgrades is a necessity, according to Don Griffin of the National Association of Independent Insurers. "If you've done some heavy investing in upgrading the car, or if you've done something like put in a new engine on an older car, you'll want to let your insurance company know, and back up the value you're stating with receipts."

If, however, the work you've done on the car simply kept the vehicle in good running condition, you won't get any additional claim payment. It is considered part of the normal vehicle maintenance.

Mike Trevino of Allstate says that policyholders should get credit for any investments they've made in a car that improves its value in the marketplace.

"You have to remember that insurance coverage is based on actual cash value," he says. "Many people think they'll get a dollar-for-dollar reimbursement, and they forget about depreciation. Anything you do to a car is going to depreciate in value."

If you have done restoration work on an older vehicle, you can also consider getting a stated-value insurance policy. A standard car insurance policy starts depreciation of a car at its original value. A stated-value policy begins depreciation at the value listed on the policy, which after restoration or other work has been done can be more than its original cost. It may mean you'll get more money for the vehicle in the end.

For example, you buy a 1965 Ford Mustang two-door convertible that needed work for $8,750. You then completely restore the car — replacing the dented quarter-panels, fixing some rust, painting the exterior with the original color, reupholstering the interior, and add a new rag top. Your car is now worth about $22,200, according to the NADA Guide.

This would be the time to buy a stated-value policy, since you don't want depreciation to start at the $8,750 you paid, but at the $22,200 your car is now worth. Without a stated-value policy, it will be harder to convince your insurer of the increase in value.

"You could [also] get your insurer to provide you with a rider for improvements, but really the compensation will come on the back end," says Trevino. "The appraiser should take into account upgrades, and you should certainly take credit for things that improve the value of your car." It is always advisable to touch base with your agent or insurer before you have an accident, to be sure any upgrades are covered, says Trevino.

A word of warning: Not all car improvements will result in an increase in market value. What you may see as an improvement may actually hurt your car's value. For instance, putting your truck on a high frame with huge wheels may make you feel like you're on top of the world, but your insurer may not concede that it increases the value of the car since these changes appeal to a limited audience.

"The rule of thumb is if the market would have rewarded the enhancements, then the policyholder should be rewarded for making them," says Trevino.