Car insurance on a modified car.

[Cody D]

I'm doing some fairly extensive performance modifications to one of my vehicles and I've been wondering if insurance will still cover it if I'm in a wreck.

Has anyone had their claim revoked because of aftermarket parts on the car? If this is something I should be worried about can anyone recommend a solution?

I searched for "modified car insurance" and didn't find anything.

[That.Guy.S30]

When I ask MM about modified car insurance they said they dont cover but they have other companies that do. Obviously they can decline your claim becuase of your modifications.

[4DoorGTZ]

My insurance co. flat out said more then 10% increase in power and its not insurable by them anymore, same thing with a modified ride height.

There has been talk about agreed value insurance, that could be something to look up.

[streethondas]

When i was getting insurance from TD they asked me if the car was modified in anyway I told them its lowered/rims and what not this is what the dude at td said "Sorry sir we can't give you insurance because it's more likely that the thief will steal your car over a normal car" I LOLED and hung up... then called back in a few weeks an when they asked me the same question I replied nope all stock no modifications an bam they gave me insurance...

This could be one of the reasons that they can fuck you over.. That's if your car gets stolen...:dunno:

[ShermanEF9]

im currently with AXA pacific and they dont give a damn about mods.

[Jetta-2.0]

Originally posted by streethondas
When i was getting insurance from TD they asked me if the car was modified in anyway I told them its lowered/rims and what not this is what the dude at td said "Sorry sir we can't give you insurance because it's more likely that the thief will steal your car over a normal car" I LOLED and hung up... then called back in a few weeks an when they asked me the same question I replied nope all stock no modifications an bam they gave me insurance...

This could be one of the reasons that they can fuck you over.. That's if your car gets stolen...:dunno:

im with TD and i have my car lowered with rims and a sound system they said they will cover any thing if i can show them proof
they did ask me if i had it modified and i told them i have an intake and a sound system and rims, he told me "oh ok" i asked him would the cover my rims if something happened to the car or them, he then told me "if they are on the car then they are covered" i asked they cost me well over $1500 he said "as long as u can prove they were on the car hen they r covered" I also asked him about my sound system and he said "as log as is under 1500 or $1000 they are covered also" i dont know what number it was tho but ya lol

[rage2]

I'm with TD, and I send them a CD with scans of my receipts, pictures of the work, as well as a 3rd party appraisal. They have no problems insuring it, even tho my last car made almost 2.5x stock power.

I have been with them for about 15 years now, with no at fault accidents on my record, so that might be why.

[94boosted]

Originally posted by Jetta-2.0


im with TD and i have my car lowered with rims and a sound system they said they will cover any thing if i can show them proof
they did ask me if i had it modified and i told them i have an intake and a sound system and rims, he told me "oh ok" i asked him would the cover my rims if something happened to the car or them, he then told me "if they are on the car then they are covered" i asked they cost me well over $1500 he said "as long as u can prove they were on the car hen they r covered" I also asked him about my sound system and he said "as log as is under 1500 or $1000 they are covered also" i dont know what number it was tho but ya lol

Are you with TD or TD Meloche Monnex?

[ercchry]

when i was with TD MM i was okay with modified cars until i went "too modified" they have different zones of modification and if you hit too many then they will send you over to nordic... where you will need an appraisal to get anything more than basic coverage

for me the tipping point was the roll cage

[Twin_Cam_Turbo]

I didn't have any problems with modifications with TD, my current car they didn't even ask me if it was modified when I insured it.

[Cody D]

Originally posted by Twin_Cam_Turbo
I didn't have any problems with modifications with TD, my current car they didn't even ask me if it was modified when I insured it.

They may not have asked you, but I'd like to know if they'd deny your claim if after an accident they found modifications.

From the sound of it I'll have to start contacting insurance companies and possibly get the car appraised.

[btimbit]

I'm curious about this as well. I don't expect them to cover the cost of any aftermarket stuff, but I'm curious if they'd deny a claim because the car has 2.5x stock power.

I'll ask when I call around for new insurance next week as well, but does anyone here know?

[epp01]

I tried to get my Rx7 insured with Co-operators insurance, and when they asked if it was modified I said it had a 302 in it. The guy was a dick and laughed and said there was no chance we would insure an rx7 with a mustang motor. I said HOLD UP, this is a 302 out of a ford pickup truck. They still denied coverage. I called back and I said I would agree to sign a document saying to just have PLPD and that if I was in an accident none of my mods would be covered. They asked for pictures of my car. A week went by, nobody called. Called state farm BAM insurance that day, they didn't even care about an insurance inspection and didn't even ask if it was modified in any way. 8 months later... still waiting on that phone call.

[Cos]

So for all you guys saying that the insurance company didnt ask, I bet in your policy it states that the car has to be stock, and if you got into an accident your insurance would be void.

Just because they didnt ask, it doesnt eliminate the fact you are not disclosing that information.

[Cody D]

Originally posted by Cos
So for all you guys saying that the insurance company didnt ask, I bet in your policy it states that the car has to be stock, and if you got into an accident your insurance would be void.

Just because they didnt ask, it doesnt eliminate the fact you are not disclosing that information.

This is what I think is going to happen, nobody asked me if my car is modified, that doesn't mean I want to gamble if something does go wrong.

[Jetta-2.0]

Originally posted by 94boosted


Are you with TD or TD Meloche Monnex?

TD home and auto insurance company

[94boosted]

Originally posted by Cos
So for all you guys saying that the insurance company didnt ask, I bet in your policy it states that the car has to be stock, and if you got into an accident your insurance would be void.

Just because they didnt ask, it doesnt eliminate the fact you are not disclosing that information.

I don't think that, that is the case otherwise there would be a new thread on beyond every week saying "I was in an accident and because of my CAI, Cat-Back and Rims my Insurance is being denied". Safe to assume that at least half of the cars on beyond today have a modification of one form or another, wether it be cosmetic or performance enhancing.

Besides there is such a grey area here because, what if the modification is through the dealership and manufacutrer i.e. TRD, Nismo, GM Performance Parts...........? What if the vehicle is purchased used and already modified (a car won't fail a safety inspection because of a mild mod)? How do they gauge % of increased performance, is the insurance company going to dyno your car and compare it to the dyno of a stock version of your car to know if you've increased power by more than X %? What qualifies as a mod and what doesn't is a Fram Air Filter a mod (after all it's not an OEM part) what about a K&N Drop in Filter or what about a K&N Cold Air Intake, what about a whole new intake manifold..... or what about performance tires (hands down the best "performance upgrade" you can do on your average comuter car) what do you classify as a mod?

The way I see it is if you've converted your street car into an all out race car then yes chances are you will have issues with insurance but if you've put an intake, exhaust, some wheels & tires onto your daily driver I think you'll be ok.

Just my 0.02 cents.

[Cos]

Originally posted by 94boosted


I don't think that, that is the case otherwise there would be a new thread on beyond every week saying "I was in an accident and because of my CAI, Cat-Back and Rims my Insurance is being denied". Safe to assume that at least half of the cars on beyond today have a modification of one form or another, wether it be cosmetic or performance enhancing.

Besides there is such a grey area here because, what if the modification is through the dealership and manufacutrer i.e. TRD, Nismo, GM Performance Parts...........? What if the vehicle is purchased used and already modified (a car won't fail a safety inspection because of a mild mod)? How do they gauge % of increased performance, is the insurance company going to dyno your car and compare it to the dyno of a stock version of your car to know if you've increased power by more than X %? What qualifies as a mod and what doesn't is a Fram Air Filter a mod (after all it's not an OEM part) what about a K&N Drop in Filter or what about a K&N Cold Air Intake, what about a whole new intake manifold..... or what about performance tires (hands down the best "performance upgrade" you can do on your average comuter car) what do you classify as a mod?

The way I see it is if you've converted your street car into an all out race car then yes chances are you will have issues with insurance but if you've put an intake, exhaust, some wheels & tires onto your daily driver I think you'll be ok.

Just my 0.02 cents.

There are two different categories for modification. A and B. A is things like CAI, Exhaust, etc. B is for engine swaps and so forth.

Now it has been a while since I had to deal with this but I think you get up to 4 things out of A and no things out of B. If you have any you HAVE to tell your insurance.

You think the insurance company hasnt thought of this? They are going to make money and if they can find a loophole they will.

[94boosted]

Originally posted by Cos


There are two different categories for modification. A and B. A is things like CAI, Exhaust, etc. B is for engine swaps and so forth.

Now it has been a while since I had to deal with this but I think you get up to 4 things out of A and no things out of B. If you have any you HAVE to tell your insurance.

You think the insurance company hasnt thought of this? They are going to make money and if they can find a loophole they will.

And how could one get this list of what exactly is considered A and what exactly is considered B. Seems to me like this would be a huge can of worms if insurance companies were to get into this with every claim. And like I said above there are so many if's, and's and but's with modifications.

[Cos]

Originally posted by 94boosted


And how could one get this list of what exactly is considered A and what exactly is considered B. Seems to me like this would be a huge can of worms if insurance companies were to get into this with every claim. And like I said above there are so many if's, and's and but's with modifications.

Well my broker asked me what modifications I had done and read me the list. If you hit list B you have to go to Nordic (I think) and if you want it covered it has to be appraised. Pretty much exactly what Rage was suggesting.

Why is it a huge can of worms? Modified ride height? Supercharged? Pretty easy to tell.



edit: found an old thread:

http://forums.beyond.ca/showthread.php?threadid=69025




Originally posted by rage2

That's not true. I more than doubled my horsepower on my Porsche from stock, fully disclosed to insurance, dyno charts and everything, and pay the same as a stock vehicle. Deductable is $1000 though, they won't give me $500 deductable. It's also insured for replacement value after getting it appraised.


Originally posted by rage2

Yep. They threatened not to pay out because I had aftermarket shocks in the car (Koni Yellows) as well as AMG springs (duh, the car is an AMG, the springs are stock). They claimed it was racing suspension and is not legal for the road.

Then they just decided that they're not gonna renew the next year. So I went back to meloche monnex with all my cars, fully disclosed all mods on each, zero problems.


Originally posted by rage2

Originally posted by finboy


yup, which is why i don't disclose my modifications to them, and hide EVERYTHING.
Don't get into an accident. Search for my AMA adventures thread, it's seriously not worth it.

[94boosted]

Originally posted by Cos


Well my broker asked me what modifications I had done and read me the list. If you hit list B you have to go to Nordic (I think) and if you want it covered it has to be appraised. Pretty much exactly what Rage was suggesting.

Why is it a huge can of worms? Modified ride height? Supercharged? Pretty easy to tell.

edit: found an old thread:

http://forums.beyond.ca/showthread.php?threadid=69025



Like I said it's it's not with the larger mods. A supercharger is black and white. But the air filter/intake example I gave earlier is exactly why I think there would be a can of worms. And what about manufacturer made/dealer installed mods?

[Cos]

Originally posted by 94boosted


Like I said it's it's not with the larger mods. A supercharger is black and white. But the air filter/intake example I gave earlier is exactly why I think there would be a can of worms. And what about manufacturer made/dealer installed mods?

I never said they would void your insurance with little stuff. Little stuff is schedule A. I am sure if you have 5 things on the list they arent going to void it.

Since we are in a thread where the OP specifically states 'extensive modifications' I figured we werent talking about a K&N filter.

Just realized I didnt address your dealer installed mods question. Ignorance is not a defence. Just because it was installed by a dealer doesnt mean the warnings that are on almost every aftermarket part (that says offroad use only) makes that any less real. Lift kits and lower kits are probably the only thing on list B you can get away with.

[94boosted]

Didn't mean to get side tracked but by saying something like this:


Originally posted by Cos
So for all you guys saying that the insurance company didnt ask, I bet in your policy it states that the car has to be stock, and if you got into an accident your insurance would be void.

Just because they didnt ask, it doesnt eliminate the fact you are not disclosing that information.

That can easily be taken out of proportion which is what I was talking about. Your car doesn't have to be "stock", but at a certain point you probably should let your insurance company know if your mods are extensive.

[Mibz]

Intact (might have been ING at the time) was okay with my coilovers, sway bars and minor power mods.

[Cos]

Originally posted by 94boosted
Didn't mean to get side tracked but by saying something like this:



That can easily be taken out of proportion which is what I was talking about. Your car doesn't have to be "stock", but at a certain point you probably should let your insurance company know if your mods are extensive.

Fair enough, poor wording on my part. That being said this is a thread about extensive modifications. So i assumed that when people said they werent telling their insurance company, they were hiding major mods.



Originally posted by Mibz
Intact (might have been ING at the time) was okay with my coilovers, sway bars and minor power mods.

Yeah but you told them about it right? Normally they dont care IF YOU TELL THEM but if they find it they MAY use it as a way to get out of paying out your claim. Honestly you would be a good authority on this.

[94boosted]

Originally posted by Cos

Just realized I didnt address your dealer installed mods question. Ignorance is not a defence. Just because it was installed by a dealer doesnt mean the warnings that are on almost every aftermarket part (that says offroad use only) makes that any less real. Lift kits and lower kits are probably the only thing on list B you can get away with.

That's interesting I thought they would only come with that disclaimer if they were selling you something that was actually not legal for the street.

[syritis]

my broker explained it to me that there are 4 sections that the insurance company looks at.

1. rollcage
2. tire circumference withing 3%
3. power mods
4. ride height

Some companies allow 1 of those sections to be changed. other companies allow 2 sections.

recreational insurance allows all 4 to be changed but some companies won't insure if the car is intended for racing purposes (legal or illegal)

[btimbit]

Originally posted by Cos


Well my broker asked me what modifications I had done and read me the list. If you hit list B you have to go to Nordic (I think) and if you want it covered it has to be appraised. Pretty much exactly what Rage was suggesting.

Why is it a huge can of worms? Modified ride height? Supercharged? Pretty easy to tell.



edit: found an old thread:

http://forums.beyond.ca/showthread.php?threadid=69025








Don't get into an accident. Search for my AMA adventures thread, it's seriously not worth it.
[/B][/QUOTE]

I'm with AMA. Apart from them royally ripping me off price and coverage wise, this scares the crap out of me. I was already planning on switching, but this is really going to speed me up. Thanks for the link

[Cody D]

Well I'm still waiting for a response from SGI, TD (Primmum) on the other hand said that they would definitely insure me with the supercharger and clam hinge installed and it's barely more than my current policy. TD didn't ask me a horsepower rating, SGI did ask for the horsepower rating. I'll probably contact Masked Bandit first because he seemed great the last time I talked to him about insurance.

[R-Audi]

My AllState broker said that if I want all of the mods covered my car had to be appraised, otherwise I was insured for the cost of OEM replacements... which when I did the math, OEM replacements typically cost the same if not a little more!

Not to get too sneaky.. but once the car is at the body shop/mechanics, they are typically willing to substitute parts in of equal value, or let you pay the difference.

[ercchry]

Originally posted by syritis
my broker explained it to me that there are 4 sections that the insurance company looks at.

1. rollcage
2. tire circumference withing 3%
3. power mods
4. ride height

Some companies allow 1 of those sections to be changed. other companies allow 2 sections.

recreational insurance allows all 4 to be changed but some companies won't insure if the car is intended for racing purposes (legal or illegal)

i think mine told me something like

1. interior (roll cage)
2. wheel diameter
3. power mods
4. handling

so basically if you get rims that are larger than oem with anything but factory tires you hit two categories... add intake and exhaust... or motor swap and you are in three... which i would have been fine with, but then i had to have a cage so that put me in 4 categories.

[G-ZUS]

My Insurance agent could not tell me much other then they have to send me over to Nordic. My car is lowered with rims, exhaust and stereo. Which mods can I keep so I can stay with TD MM?

[Speed_69]

Originally posted by G-ZUS
My Insurance agent could not tell me much other then they have to send me over to Nordic. My car is lowered with rims, exhaust and stereo. Which mods can I keep so I can stay with TD MM?

You can keep the exhaust and stereo. If your exhaust gets damaged in an accident though, they'll only pay for a OEM one. They will also only cover up to $1,500 for stereo equipment unless you pay extra premium for additional coverage.

[Zero102]

TD MM told me that they would refer me to their facilities group for ANY modifications at all. I specifically asked about lowering it OR exhaust OR intake mods and they said in each case (or all cases) that they would not offer me insurance but I would have to call their facilities group for a quote.

Unfortunately shortly after buying the car part of the exhaust fell off (rusted through) so I have installed a non-stock exhaust to replace it =/

[btimbit]

Originally posted by Speed_69


You can keep the exhaust and stereo. If your exhaust gets damaged in an accident though, they'll only pay for a OEM one.

That's the nice thing about VW, OEM parts are more expensive than the high end aftermarket equivalents.:rofl:

[revelations]

I'm with SGI Canada (sask government insurance, offered to albertans for cheap) and they had no problems with my lowered suspension.

[btimbit]

I just sent an email to my insurance company asking about this. Which, despite all my earlier posts, is still AMA:banghead:

[crapstixs]

the two biggest gray areas of the automotive industry are opi's and insurance inspections. due to the fact that they are up to the descression of the technician.
when I do a opi, Im going to rake you over the coals, Im not going to loose my license because your car is lowerd 3" and the max is 1.5". When I do a insurence inspection I put my phone number on it instead of my license number. insurence inspections are not regulated at all. Im not going to give my license number to some joe blow. over hundreds of insurence inspections I may have been called a hand full of times. When I do a insurance inspection I dont give a shit if you have a deck or a cold air intake. whoo 5 hp. If you have a swap or a non-factory turbo or supercharger yes im going to say the vehical has been modified for speed of peformance. My s13 puts out over 2X what it did from the factory. I have basic insurance on it. If I hit some one the only one thats cares about my car is me. If some one hits me, my car is worth $1000 unless I have proof saying other wise. If you have thousands dumped into a car your going to buy special insurance, and at that point money is not a concern. And your going to call around and find someone that provides pefromance insurance.

[C4S]

They just won't pay/cover the extra sh*t you put into your car.

Say your car worth $30K in Retail, and you spend $15K on whatever ..

Then you smash it, total lost, your insurance company will just pay you ~ $20-25K wholesale price. (unless your car is new, and pay them the whatever extra cover)

But you can keep your modified parts, your insurance company keep your smashed car.

[Cody D]

In the end I went with Legends Collector Car Insurance, I had the car appraised and they will pay every dollar including all modifications if anything happens, it's not for everyone but it works for me. 5,000km/year limit is the only bad part.