Most of the mod issues would be you trying to get recovered for them whether they were stolen or damaged during a crash and the insurance company didn't know about them. You normally have to pay a bit extra for "mod insurance" if you want aftermarket parts covered. I would hope NO insurance company would leave you high and dry because you didn't have OEM tires on your car. I think the example given is taking it a bit to far. On the other hand, if your car had with modded to hell car with 800hp and you were in a high speed wreck or something like that, then yea, I could see them doing that.
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