Modifications that cause you to loose your insurance list.
09-11-2006, 09:15 AM
#21
Registered User
Originally Posted by kcobean
That's a great example. All CF hoods are not "street legal" because they do not have the federally mandated crumple zones. I could easily see being injured by the hood of the car coming through the windshield in a frontal crash (hopefully not decapitated), and being denied coverage because you modified the car in a manner that directly contributed to your injuries. That kind of thing is probably never explicitly stated in a policy, but would certainly surface once the accident/adjuster reports caught up with you.
1) An insurance policy is really a contract. You agree to certain things, and the insurance company agrees to certain things. And those mutual responsibilities are spelled out in the policy. Your insurance provider CANNOT deny a claim by saying "Oh, by the way, we forgot to tell you..." It must be "explicitely stated in the policy".
2) The actions of insurance companies are carefully regulated by your state's Department of Insurance. This is a public agency charged with the responsibility of protecting the public from capricious and unfair practrices of insurance companies. And the Dept of Insurance actually determines which companies are allowed to provide insurance in your state. The insurance companies are required to comply with the specific guidelies established by the DOI.
3) While you tend to think of your self as the beneficiary (or "victim", if your unhappy with a settlement) of the insurance provider, that really is usually not true. The beneficiary of your liability insurance is any party that you harm or injure. And almost always, the real benificiary of your collision and comprehensive policy is the lender that provided the financing for your car. If you have a loan on the car, your policy will list the lender as the "loss payee". And any checks that are issued to settle a claim will be made either to teh lender, or jointly to the you and the lender. You will still need their signature/authorization to cash the check.
So since insurance almost always protect 3rd parties, the Department of Insurance needs to make sure that insurance companies can be relied on to honor their responsibility, even of the owner may have does something that could be regarded as inappropriate. The Department of Insurance is NOT going to permit insurance companies to deny claims on whims and technicalities, and they will not authorize inurance companies to write policies with language that allows them to capriciously deny claims
This can certainly be an appropriate topic for discussion, but it will be a lot more valuable if posters bring some facts to the board, rather then undocumented speculation about they think insurance companies might do.
I would be as interested as anyone to review any factual info members can bring to this topic
bill
Last edited by bailey bill; 09-11-2006 at 09:48 AM.
09-11-2006, 09:50 AM
#22
Read this article from Insurance.com
http://www.insurance.com/Article.asp...ides/artid/392
http://www.insurance.com/Article.asp...ides/artid/392
Auto Insurance For Pimped Out Rides
With the popularity of custom car TV shows such as “Pimp My Ride”, personalized cars are becoming hotter than ever before - and the accessories have come a long way from simple paint jobs and fuzzy steering wheel covers. Today, drivers want their cars to stand out from the crowd and express their personality and style. As a result, car owners are adding chrome rims and grills, customized murals, Spree wheels (spinner rims), pipes, flat screens, monitors, decked out stereo systems, ground effects and hydraulics that make their new rides jump, hop or low ride.
But what is the cost to insure these hot new accessories? And do you actually know if your auto insurance company will cover these new enhancements?
If you are thinking of pimping out your ride, these are some very important questions to ask your insurance agent! Modifying your car is a huge investment and you don’t want to find out after the fact that your vehicle is not covered.
Ask first, pimp your ride out later
The best course of action is to consult your insurance company first before you start pimping out your ride. This will help you find out what your auto insurance company does and doesn’t cover, if they are willing to insure your new ride and what the total cost would be to keep your customized ride covered.
If your current insurance company does not cover your customized parts on their ordinary policies, then you will more than likely need to add an endorsement to your policy. An endorsement is an extension of your comprehensive and collision portion of your auto insurance policy. If you currently carry full auto insurance coverage you probably already have these as part of your policy. If you don’t, you will more than likely have to upgrade your plan.
Also, keep in mind that most endorsement plans only cover up to $5,000. So if your new parts are more than the covered cost, you may want to look else where for coverage.
Specialized auto insurance companies
Just because your current insurance company may not be able to cover your customized vehicle doesn’t mean you won’t find a company to insure you. There are many insurance companies throughout the United States that specialize in antique and customized cars including:
Don’t skip on the details
In order to properly write a policy that covers your entire investment, you will have to disclose every detail you have added to your new ride. This will help your agent develop a policy that protects your car in the event of an accident or theft.
Safety is key
Many insurance companies want to make sure that your new customized car is safe to drive. So be prepared to supply your agent with an itemized bill detailing everything that has been done to your new car, to what specification and by what company.
Why, you might ask? According to Ohio insurance agent, Brad Vermillion, many drivers attempt to do the work themselves. As a result, parts could potentially be installed improperly, not match regulated standards or be illegal to drive with on public roads.
Think the authorities will never find out? Think again! If you end up in an accident and it is discovered that your car was the cause of the accident due to illegal modifications or improper installation, your insurance company has the right to refuse you coverage. Rest assured they will still cover any damages you may have caused the other parties involved, but you will not see a dime.
So your best bet is to be honest with your insurance company and have a professional do the work for you. It will save you a lot of money in the long run and keep you out of harms way.
With the popularity of custom car TV shows such as “Pimp My Ride”, personalized cars are becoming hotter than ever before - and the accessories have come a long way from simple paint jobs and fuzzy steering wheel covers. Today, drivers want their cars to stand out from the crowd and express their personality and style. As a result, car owners are adding chrome rims and grills, customized murals, Spree wheels (spinner rims), pipes, flat screens, monitors, decked out stereo systems, ground effects and hydraulics that make their new rides jump, hop or low ride.
But what is the cost to insure these hot new accessories? And do you actually know if your auto insurance company will cover these new enhancements?
If you are thinking of pimping out your ride, these are some very important questions to ask your insurance agent! Modifying your car is a huge investment and you don’t want to find out after the fact that your vehicle is not covered.
Ask first, pimp your ride out later
The best course of action is to consult your insurance company first before you start pimping out your ride. This will help you find out what your auto insurance company does and doesn’t cover, if they are willing to insure your new ride and what the total cost would be to keep your customized ride covered.
If your current insurance company does not cover your customized parts on their ordinary policies, then you will more than likely need to add an endorsement to your policy. An endorsement is an extension of your comprehensive and collision portion of your auto insurance policy. If you currently carry full auto insurance coverage you probably already have these as part of your policy. If you don’t, you will more than likely have to upgrade your plan.
Also, keep in mind that most endorsement plans only cover up to $5,000. So if your new parts are more than the covered cost, you may want to look else where for coverage.
Specialized auto insurance companies
Just because your current insurance company may not be able to cover your customized vehicle doesn’t mean you won’t find a company to insure you. There are many insurance companies throughout the United States that specialize in antique and customized cars including:
- Classic Auto Insurance
- Antique & Custom Automobile Insurance
- Hagerty Insurance
- Continental Western Group Tri-State Insurance
- Grundy Worldwide
Don’t skip on the details
In order to properly write a policy that covers your entire investment, you will have to disclose every detail you have added to your new ride. This will help your agent develop a policy that protects your car in the event of an accident or theft.
Safety is key
Many insurance companies want to make sure that your new customized car is safe to drive. So be prepared to supply your agent with an itemized bill detailing everything that has been done to your new car, to what specification and by what company.
Why, you might ask? According to Ohio insurance agent, Brad Vermillion, many drivers attempt to do the work themselves. As a result, parts could potentially be installed improperly, not match regulated standards or be illegal to drive with on public roads.
Think the authorities will never find out? Think again! If you end up in an accident and it is discovered that your car was the cause of the accident due to illegal modifications or improper installation, your insurance company has the right to refuse you coverage. Rest assured they will still cover any damages you may have caused the other parties involved, but you will not see a dime.
So your best bet is to be honest with your insurance company and have a professional do the work for you. It will save you a lot of money in the long run and keep you out of harms way.
09-11-2006, 09:53 AM
#23
Although not insurance related, removing an airbag can have some penalties;
http://www.nytimes.com/2004/12/30/business/media/30auto.html?ex=1262149200&en=0079750c125ae209&ei=5088&partne r=rssnyt
Custom Rims, Yes; TV in Steering Wheel, No
By DANNY HAKIM
Published: December 30, 2004
ETROIT, Dec. 29 - Pimp the ride, pay the price.
In the first of what is expected to be a broader crackdown against auto customization shops, federal regulators on Wednesday imposed a $16,000 fine on West Coast Customs, the auto body shop affiliated with "Pimp My Ride," an MTV reality show that makes over rundown cars.
The shop, which has customized sport utility vehicles for customers like Shaquille O'Neal, was fined for removing front air bags in cars to install video screens in steering wheels.
Another celebrity shop, Unique Autosports in Uniondale, N.Y., was fined $5,000 for a similar offense. A reality show featuring the shop, to be called "Unique Whips," will be shown on the Speed Channel, a cable automotive channel, in February.
Rae Tyson, a spokesman for the National Highway Traffic Safety Administration, said the fines were the first of what was expected to be a larger crackdown on car customizers who were disabling safety equipment.
Regulators have noticed that front-seat video screens have become one offshoot of the car customization boom. While the safety agency does not have jurisdiction over installing video monitors in cars and trucks after they have been manufactured, they do have jurisdiction over tampering with safety equipment such as air bags.
"We're actively pursuing several others," Mr. Tyson said, "It's not only a bad idea to disable the air bag, it's against the law. Air bags are there for a purpose, to protect you. If you have a DVD player there instead of an air bag, it's not going to protect you in a crash."
Calls to West Coast Customs, of Inglewood, Calif., were not returned. Will Castro, the proprietor of Unique Autosports, said, "I have no comment."
Mr. Castro has done customization work for stars ranging from the entertainer Jennifer Lopez to the rap artist Eminem, according to a recent news release from the Speed Channel.
Employees of West Coast Customs are regularly featured on "Pimp My Ride" performing automotive miracle work, and seven of them are profiled on MTV's Web site.
Most states have laws against watching televisions in the front seat, though many of the laws have not been updated to include DVD players and other new technologies. New York law prohibits cars from being "equipped with a television receiving set within view of the operator." But an updated California law that took effect in January bans most video functions in the front seat, including DVD players, with the exception of such technologies as navigation systems.
Automakers often install video screens for passengers in the front seat, but only features like navigation systems or stereos can typically be operated while the car is in motion, though the proliferation of electronic controls in luxury cars is also the focus of scrutiny by safety researchers.
"We know that all kinds of distractions can be a problem, but it would be hard to think of something more distracting than watching a video while you're driving," said Anne McCartt, a vice president for research at the Insurance Institute for Highway Safety, a group financed by car insurers. "It's a really worrisome trend."
She said swapping an air bag for a video screen was even more disturbing.
"It's taking out a safety device that has proven lifesaving benefits," Ms. McCartt said, "and replacing it with something that could clearly be distracting and potentially dangerous."
In recent years, car customization has becoming a booming business, and TV shows chronicling cool cars and car makeovers have proliferated, including "Overhaulin' " on TLC and "Ride with Funkmaster Flex" on Spike TV. Over the last decade, annual spending on after-market car parts and accessories has doubled to $28.9 billion a year, according to the Specialty Equipment Market Association.
"Pimp My Ride" on MTV - with its host, Alvin Joiner, a Detroit native better known as the rapper Xzibit - is a feel-good show in which 18- to 22-year-olds are invited to submit their dilapidated cars or trucks for a major retrofit by West Coast Customs.
In one episode, for instance, a sad-looking 1989 Ford Mustang was remade to include a photo booth built into the passenger side with a camera in the visor and a printer in the center armrest.
Safety investigators, however, were drawn to West Coast Customs not by something that occurred on the MTV program but by an advertisement on the shop's Web site.
"There's nothing wrong with customization," said Mr. Tyson, of the traffic agency, "as long as you don't disable safety equipment."
Custom Rims, Yes; TV in Steering Wheel, No
By DANNY HAKIM
Published: December 30, 2004
ETROIT, Dec. 29 - Pimp the ride, pay the price.
In the first of what is expected to be a broader crackdown against auto customization shops, federal regulators on Wednesday imposed a $16,000 fine on West Coast Customs, the auto body shop affiliated with "Pimp My Ride," an MTV reality show that makes over rundown cars.
The shop, which has customized sport utility vehicles for customers like Shaquille O'Neal, was fined for removing front air bags in cars to install video screens in steering wheels.
Another celebrity shop, Unique Autosports in Uniondale, N.Y., was fined $5,000 for a similar offense. A reality show featuring the shop, to be called "Unique Whips," will be shown on the Speed Channel, a cable automotive channel, in February.
Rae Tyson, a spokesman for the National Highway Traffic Safety Administration, said the fines were the first of what was expected to be a larger crackdown on car customizers who were disabling safety equipment.
Regulators have noticed that front-seat video screens have become one offshoot of the car customization boom. While the safety agency does not have jurisdiction over installing video monitors in cars and trucks after they have been manufactured, they do have jurisdiction over tampering with safety equipment such as air bags.
"We're actively pursuing several others," Mr. Tyson said, "It's not only a bad idea to disable the air bag, it's against the law. Air bags are there for a purpose, to protect you. If you have a DVD player there instead of an air bag, it's not going to protect you in a crash."
Calls to West Coast Customs, of Inglewood, Calif., were not returned. Will Castro, the proprietor of Unique Autosports, said, "I have no comment."
Mr. Castro has done customization work for stars ranging from the entertainer Jennifer Lopez to the rap artist Eminem, according to a recent news release from the Speed Channel.
Employees of West Coast Customs are regularly featured on "Pimp My Ride" performing automotive miracle work, and seven of them are profiled on MTV's Web site.
Most states have laws against watching televisions in the front seat, though many of the laws have not been updated to include DVD players and other new technologies. New York law prohibits cars from being "equipped with a television receiving set within view of the operator." But an updated California law that took effect in January bans most video functions in the front seat, including DVD players, with the exception of such technologies as navigation systems.
Automakers often install video screens for passengers in the front seat, but only features like navigation systems or stereos can typically be operated while the car is in motion, though the proliferation of electronic controls in luxury cars is also the focus of scrutiny by safety researchers.
"We know that all kinds of distractions can be a problem, but it would be hard to think of something more distracting than watching a video while you're driving," said Anne McCartt, a vice president for research at the Insurance Institute for Highway Safety, a group financed by car insurers. "It's a really worrisome trend."
She said swapping an air bag for a video screen was even more disturbing.
"It's taking out a safety device that has proven lifesaving benefits," Ms. McCartt said, "and replacing it with something that could clearly be distracting and potentially dangerous."
In recent years, car customization has becoming a booming business, and TV shows chronicling cool cars and car makeovers have proliferated, including "Overhaulin' " on TLC and "Ride with Funkmaster Flex" on Spike TV. Over the last decade, annual spending on after-market car parts and accessories has doubled to $28.9 billion a year, according to the Specialty Equipment Market Association.
"Pimp My Ride" on MTV - with its host, Alvin Joiner, a Detroit native better known as the rapper Xzibit - is a feel-good show in which 18- to 22-year-olds are invited to submit their dilapidated cars or trucks for a major retrofit by West Coast Customs.
In one episode, for instance, a sad-looking 1989 Ford Mustang was remade to include a photo booth built into the passenger side with a camera in the visor and a printer in the center armrest.
Safety investigators, however, were drawn to West Coast Customs not by something that occurred on the MTV program but by an advertisement on the shop's Web site.
"There's nothing wrong with customization," said Mr. Tyson, of the traffic agency, "as long as you don't disable safety equipment."
09-11-2006, 10:08 AM
#24
I wonder if this is just CYA or if there are other implications?
From Stoptech;
From Stoptech;
Disclaimer of Warranty / Limitation of Liability
By purchasing the STOPTECH brake kit and/or components contained herein and opening the accompanying box or packaging, the purchaser(s), his/her/their buyer(s) and/or the ultimate user(s) expressly (1) acknowledge that he/she/they have read and understood all terms set forth herein; (2) understand and agree that the STOPTECH brake kit and/or components, whether acquired new or used, whether complete or incomplete, whether of merchantable or non-merchantable quality, whether saleable or non-saleable, is taken, purchased, selected and/or acquired "AS IS" and "WITH ALL FAULTS"; (3) acknowledge that the brake kit and/or components contained herein are intended only for off-street use, regardless of whether said brake kit and/or components are approved by a state or the United States Department of Transportation; (4) understand and agree that he/she/they bear all risks, including but not limited to the risk as to the quality and performance of said brake kit and/or components, the risk of any and all liability arising from the use or misuse and/or correct or incorrect installation of said brake kit and/or components, and the risk of bearing the costs of repair or replacement of the subject brake kit and/or components, whether in defective or non-defective condition. STOPTECH is not responsible for damage, consequential or otherwise, for equipment failure or mal-performance after installation; understand that (5) Auto Racing is a dangerous sport, and products are subject to failure when exposed to the high stresses involved with use on a Race Track.
By purchasing the STOPTECH brake kit and/or components contained herein and opening the accompanying box or packaging, the purchaser(s), his/her/their buyer(s) and/or the ultimate user(s) expressly (1) acknowledge that he/she/they have read and understood all terms set forth herein; (2) understand and agree that the STOPTECH brake kit and/or components, whether acquired new or used, whether complete or incomplete, whether of merchantable or non-merchantable quality, whether saleable or non-saleable, is taken, purchased, selected and/or acquired "AS IS" and "WITH ALL FAULTS"; (3) acknowledge that the brake kit and/or components contained herein are intended only for off-street use, regardless of whether said brake kit and/or components are approved by a state or the United States Department of Transportation; (4) understand and agree that he/she/they bear all risks, including but not limited to the risk as to the quality and performance of said brake kit and/or components, the risk of any and all liability arising from the use or misuse and/or correct or incorrect installation of said brake kit and/or components, and the risk of bearing the costs of repair or replacement of the subject brake kit and/or components, whether in defective or non-defective condition. STOPTECH is not responsible for damage, consequential or otherwise, for equipment failure or mal-performance after installation; understand that (5) Auto Racing is a dangerous sport, and products are subject to failure when exposed to the high stresses involved with use on a Race Track.
09-11-2006, 10:22 AM
#26
Originally Posted by bailey bill
Look guys, I really am NOT trying to be negative about this thread, but am trying to discuorage it from become a source of misinformation.
......
I would be as interested as anyone to review any factual info members can bring to this topic
bill
......
I would be as interested as anyone to review any factual info members can bring to this topic
bill
I plan to look my policy over. I have a hard time beleiving that your insurance company has no policy written reguarding the removal of safety equipment and/or installing non-DOT approved equipment in any of their literature.
09-11-2006, 10:45 AM
#27
Insurance
Hey everyone
I dont post much but I thought this was a good topic that I could shed some light on. I am a Nationwide agent in FL with a highly modified 350z. If you guys have any questions you need some answers to PM me and I will get you an answer. Rule of thumb is to keep the car as Street Legal as possible. Let the insurance company know all your modifications in a dollar amount so if you wreck it they will replace it. It will cost a little more but its well worth it as all we will do is bring it back to stock if you dont have the right coverage. Things like CF hoods and test pipes dont matter if there is a claim involved. If you are hurt and you took your airbag out....not good. The claims professional makes the final call and they are all different, but most of the time they wont deny the claim because of your mods. If I can help let me know.
Ryan
I dont post much but I thought this was a good topic that I could shed some light on. I am a Nationwide agent in FL with a highly modified 350z. If you guys have any questions you need some answers to PM me and I will get you an answer. Rule of thumb is to keep the car as Street Legal as possible. Let the insurance company know all your modifications in a dollar amount so if you wreck it they will replace it. It will cost a little more but its well worth it as all we will do is bring it back to stock if you dont have the right coverage. Things like CF hoods and test pipes dont matter if there is a claim involved. If you are hurt and you took your airbag out....not good. The claims professional makes the final call and they are all different, but most of the time they wont deny the claim because of your mods. If I can help let me know.
Ryan
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