STATE FARM tryin to bend me over!!

[vince_by_design]

so my car was broken into a while back, there was body damage and engine parts and subs ect were stolen. i claimed it through insurance "STATE FARM" and they were fine with it, towed it to the body shop of my choice, and went to look at it for an estimate of damage ect. then last friday i took them all my reciets for sterio and engine parts that were stolen equaling more then 4 G and it all changed. Now there all "were dont insure modified cars, so were cutting off your insurance as of March 25th and any loses that occured or occure before this date will be DENIED!!. So now there sayin i get dick all since my car was moified from manufactures desing and anything stolen is not covered since there was material change.

The thing that gets me the most is, they knew my car is a show car with over 15 G + of mods and sterio and they even had pics of it ect.

if there is anyone here that is through state farm with amoded car let me know, and if there anything i can do HOLLA. i go see them for a meeting tommorow to "sign so papers" YAY RIGHT I AIGHT SIGNIN SHITTT. haha

[Hakkola]

Bring a lawyer if the loss is that big, just a suggestion.

[1badPT]

I warn people on the forums about this very situation all the time, but no one seems to take it seriously.

You may have a valid claim if they are fully aware of the mods you have done to your car, but if there is one thing that they aren't aware of and they feel that it was a factor in your car being broken into, its not good news at all unfortunately.

For everyone else - if you mod your car you have a very important decision to make when it comes to insurance. If you let the insurer know what mods you have done, they may be willing (at an extra charge usually) to insure you for the mods - but they could also decline to insure you completely. There are some insurers who are willing to collect the extra premium to provide the extra coverage but you might have to make a few more phone calls, and you certainly won't be getting the lowest cost insurance (and you shouldn't be if you're higher risk).

If you don't tell them about the mods, and you need to place a claim (accident, theft, vandalism etc), your policy can be terminated for non-disclosure (what's happened here). It gets worse. Non-disclosure termination puts you in a high risk insurance market for 10 years so if you think insurance costs a lot now, wait until you are considered a high risk.

GL and sorry to hear the news.

[rage2]

hehe sounds familiar :). I got cut off of insurance because the AMG has "racing suspension", even though it's straight out of Mercedes Benz. I can't even insure a bone stock C32 AMG with AMA because it's a "race model". They made me sign the form terminating coverage last month. I think they have TONS of excuses to cut you off insurance, and will use those excuses if they find you to be a possible high risk. I was deemed high risk because I got rear ended twice within 5 months where I was not at fault.

So I went back to Meloche Monnex, disclosed all the modifications to the car (stereo, wheels, GPS, etc), disclosed use of vehicle, disclosed 2 rear end accidents, and all is well again, even saved $250/year in premiums. But you need to be a perfect driver to get insured under those guys.

Originally posted by vince_by_design
Now there all "were dont insure modified cars, so were cutting off your insurance as of March 25th and any loses that occured or occure before this date will be DENIED!!. So now there sayin i get dick all since my car was moified from manufactures desing and anything stolen is not covered since there was material change.
If they have a list of all your receipts, photos of cars, etc., and knew that you entered shows with your car, they can't deny you coverage. If you lied about it at all, they can deny your claim. A lawyer usually can take care of it, but costs you $$$.

I shopped around for insurance last month and found out most places will not sell you a policy if you take your cars to a car show, or take it to the track (drag race, solo2, roadcourse, anything). I didn't understand the car show part... I could understand the track use (potential for fraud). Very odd.

Oh, and if you take your car to the track, you can show them the waivers that you have to sign at the track that shows that your vehicle's public road insurance is null and void. Only then will they agree to letting you use your car at the track, even for driving schools. Yes, their policy states that there's no coverage on non public roads such as at race city, but they wanna make sure by seeing those waivers. Another oddity... there's no clause for street racing, so you actually GET coverage for street racing :).

Good luck man, it sucks getting screwed by insurance. Total waste of time.

[rage2]

Originally posted by 1badPT
If you don't tell them about the mods, and you need to place a claim (accident, theft, vandalism etc), your policy can be terminated for non-disclosure (what's happened here). It gets worse. Non-disclosure termination puts you in a high risk insurance market for 10 years so if you think insurance costs a lot now, wait until you are considered a high risk.
Well said :thumbsup:.

Although I wasn't aware of the non-disclosure / 10 year high risk group part.

[1badPT]

Yeah not to scare anyone, but my buddy has a 99 Accord, and he's paying about $6,000 a year premiums and he's only 2 years in to the 10 year high risk status.

[idriveabox]

Ah yes the high risk or facility market in Alberta. They will put you in it, without even letting you know. Essentialy made for Alberta drivers with a "high risk", as insurance is a necessity for all. Even things like not paying a premium on time are landing otherwise fine drivers, in this market.

Make sure you disclose all facts relating to the car. "Rolling stereos" change the initial risk underwritten by the insurer.
Sorry to hear man.

[Strider]

Originally posted by rage2
So I went back to Meloche Monnex, disclosed all the modifications to the car (stereo, wheels, GPS, etc), disclosed use of vehicle, disclosed 2 rear end accidents, and all is well again, even saved $250/year in premiums. But you need to be a perfect driver to get insured under those guys.


I got on with Meloche Monnex with 1 accident, 1 ticket, and a lapse in insurance... granted I'm paying $2300/year for PLPD on my Talon, but it's $2k cheaper than anywhere else.

I think they'll take you as long as you're a member of a professional organization (ie. APEGGA)

[CloudLight]

If the insurance company decides not to renew your insurance, does that count as a cancellation of your insurance?

Primmum is refusing to renew our insurance now, and if it counts as a cancellation, we'll have to bend over backwards for insurance.

[1badPT]

Refusing to renew and terminating are different.

Assume that your policy term is Jan 1 - Dec 31

Termination:
(bad)The insurance company returns any pre-paid premium for the balance of the year and cancels your policy effective today or (wost) they return all premiums you paid so far this year and cancel your policy right back to Jan 1 (in essence its like the policy never existed). Termination is only used in the most severe circumstances - its generally if someone didn't give the insurer proper details about the risk they were undertaking - and insurance is a contract. If one person mis-represents their side of the deal then the deal is off.

Refusing to renew is different. Each insurer just like an investor is willing to take on a certain level of risk. Riskier business has higher premiums, low risk business has fewer claims. You may have done something in the past year that makes you more of a risk than your insurer writes, so they are keeping your current policy in place but when its time to renew, you'll have to find a new insurer. In essence you haven't done anything to jeopardize the existing contract you have between you and your insurer, but you have become more of a risk than they normally handle so they won't write any new contracts, but the one in place is still valid.

If you've been informed of refusal to renew, start shopping around now so you're not stuck at the last minute trying to find an insurer who will write a policy for you. It goes without saying but be upfront about your driving history when looking for a new insurer.

[rage2]

Originally posted by Strider
I think they'll take you as long as you're a member of a professional organization (ie. APEGGA)
Yep, that's true with TD as well. If you have a University Level degree, MM will also take you regardless of previous driving history. TD, if your company has a group health insurance that's recognized by TD, they will also take you regardless of history.

[bighead411]

i'm sorry to hear that. although it's too late to say..........stay away from State Farm and All State.........

[Wookey]

Yah, my sister works for State farm insurance and id be damned if i ever went there for insurance, THey cut you off for everything. State farm licks and thats why i am staying with the Cooperators. I had my car stolen once off of my driveway and only had PLPD and no fire and theft, Cooperators were nice enough to pay me more then what i payed for the car, payed for the stereo, speakers, subs neon lights. As long as i had receipts they were all gung ho!:thumbsup:

[1badPT]

Originally posted by bighead411
i'm sorry to hear that. although it's too late to say..........stay away from State Farm and All State.........

I'm sure you have your reasons for your warning, but it would be unfair to make it sound like those are the only insurers that would handle the situation this way.

Edit: And wookey that was very nice-its clear they appreciate your business.

[bighead411]

once u deal with State Farm and All state. once u've accident(even tho your car is only two days new). they will put second hand/used or aftermarket parts on it if possible. unless there is nothing available. dealing with their adjuster is pain in the bud.......that's why no matter how cheap their rate is......i never deal with them.......

[T5_X]

So basically, if you have even something as little as an aftermarket shift knob, an insurance company can cut you off and screw you over for the next ten years by putting you in a "high risk category?" How bout an air freshener?

LOL, glad I'm insured through ICBC.

[Wookey]

Originally posted by T5_X
So basically, if you have even something as little as an aftermarket shift knob

I wouldn't put it past state farm, they are so full of crap. They'll pull something outta their ass trust me. :guns:

[1badPT]

Originally posted by T5_X
So basically, if you have even something as little as an aftermarket shift knob, an insurance company can cut you off and screw you over for the next ten years by putting you in a "high risk category?" How bout an air freshener?

This thread is getting more technical than I thought it would :tongue:

I should point out termination for non-disclosure is not something to take lightly, and an insurer will not be quick to do it to someone either - why would you screw a paying customer so hard that they'd never come back?

Termination for non-disclosure is only when a person misrepresented the risk. In other words, a shift knob, an air freshener, etc isn't going to change the level of risk. Installing a turbo(more power=more likelihood of an accident), an expensive entertainment system(increases likelihood of theft), etc does change the level of risk. Factors that actually affect the level of risk are called material. If you haven't disclosed something that is material (ie something that actually increases the risk of claim for your car versus other cars of the same year and model - or even leaving out something important from your driving/claim history), then you are basically throwing away the protection aspects of the policy(isn't that the point of a policy?).

To summarize, if its something that increases the risk of claim, your best bet is to disclose it.

[bighead411]

yes. it's call material fact. in auto statutory condition number 1. call misrepresentation. that's the insurance technical term.

[szw]

I thought insurance companies are currentlly not allowed to refuse insurance to anyone?

[bighead411]

by-law. they can't refuse to insured you. that's why they will ask for a sky high premium rate to let u out of their office yourself without all the hassle.......my advise still stand.....don't bother deal with All-state and State farm. i can't say they scam. they just not a friendly insurance company to deal with.....hope this help

[1badPT]

Originally posted by szw
I thought insurance companies are currentlly not allowed to refuse insurance to anyone?

An insurer can decline coverage if a person doesn't meet their underwriting criteria (level of risk basically).

Its brokers who cannot refuse to quote you. So most brokers will have a contract with a low risk insurer (so they can attract low risk business with low premiums) a mid or substandard risk insurer (for people who are higher than average risk, but not considered high risk) and finally a facility insurer (high risk business).

[bighead411]

:poosie:

[Sean7]

That sucks, insurance comanies are always trying to figure out ways to stuff more money into thier pockets.

Isn't car insurance supposed to be changing soon? I remember reading something in the sun about changing to a step ladder system where everyone pays the same, then depending on your driving record you could either go up, or down the price ladder. Sounds good to me as according to them I would save about $1500 per year, as I have a clean record.

Anyone else remember anything about this?

[Hakkola]

So someone driving a $150 000 Benz will pay the same as someone driving a $500 Pinto?

I doubt it.

[rage2]

Originally posted by Hakkola
So someone driving a $150 000 Benz will pay the same as someone driving a $500 Pinto?

I doubt it.
For PLPD, yes. It's the comprehensive that's expensive.

[hjr]

PLPD only covers the driver in case of accident. IE. you hit a person, you are covered and they will fix their car, but NOT yours. Because they will never be fixing your car, it doesnt really matter what it is. Technically.

[Hollywood]

Now what about this, what happends if someone hits a modifed car does the guy who hit you insurance pay for your mods back? ie: wheels, body kit, engine.

[rage2]

Originally posted by Hollywood
Now what about this, what happends if someone hits a modifed car does the guy who hit you insurance pay for your mods back? ie: wheels, body kit, engine.
I know this well :). Your insurance actually pays for it first, then gets the money from the other guy's insurance. If you didn't disclose your mods, then you may not get the money to repair the mods. Or they will not renew your insurnace (my case because of wheels) but still pay for the claim.

[bighead411]

not certainly, as i remember. most of the insurance company won't cover mod stuff(correct me if i'm wrong). the new idea only for TPL(which is so call PLPD to third party. once u wanna cover your own car. it's not gonna cheap. also, even some body hit your car who have mod on the victims car. u won't get 100% back due to depreciate on your parts(wear and tear). so don't expect too much from insurance company.

as rage 2 mention the suituation. it's call subrogation in insurance term. but industry have change even tho u a not at fault. they will still count it(not increase your premium, but not renewal your policy)due to the reason that u take the money from the pool often.

hope this help guys