Insurance for Mods?
I have GEICO insurance and I called them to ask this question because in a month or so I will be putting my new wheels on the car. I asked them how much it would cost me to add ~$2500 for the wheels and it was something like $50 per 6 months. Not too bad. They said I have to save my receipts to back up any claims.
Stereos are normally covered as long as they remain in stock position (at least that is what my Progressive agent said when my Integra was broken into) so I wonder if wheels are the same as long as you keep receipts?
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From: sims, nc
Originally Posted by danielwebb
I'm sure someone here has been through this and can help answer his questions. Calling the insurance company is a pain
bill
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mercury told me they only cover stereo systems, and wheels and tires, and thats it, and they only cover up to a certain amount (Dollar value).....bc im tryin 2 get my motor work covered rite now....and am not having the best of luck!!!!
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From: USA
Originally Posted by jonb7007
My Ins company will cover it as long as its mounted to the vehicle...... And I have all my receipts.....
Speaking as an underwriter...
Originally Posted by sunmind
Good question.
Mild engine modifications (bolt-ons) would probably not require reporting, since the performance characteristics of the insured vehicle would not change sufficiently to alter the insured risk. Even so, the insurers could demand higher premiums, if they perceived greater risk.
Adding more than 100 whp (for instance) with forced induction clearly changes the level of risk and is a material fact that should probably discussed with the insurance company. In the U.K., highly-modified vehicles are often subject to technical scrutiny before an appropriate premium is calculated by the insurers. I do not know if the U.S. is as stringent.
I would be concerned about the guys that have gone FI because of the distinct possibility that an insurer may not be willing to pay out a multi-million dollar claim if they could avoid doing so; because a driver had failed to disclose material facts that might have reasonably influenced the decision of the insurer to provide coverage.
Mild engine modifications (bolt-ons) would probably not require reporting, since the performance characteristics of the insured vehicle would not change sufficiently to alter the insured risk. Even so, the insurers could demand higher premiums, if they perceived greater risk.
Adding more than 100 whp (for instance) with forced induction clearly changes the level of risk and is a material fact that should probably discussed with the insurance company. In the U.K., highly-modified vehicles are often subject to technical scrutiny before an appropriate premium is calculated by the insurers. I do not know if the U.S. is as stringent.
I would be concerned about the guys that have gone FI because of the distinct possibility that an insurer may not be willing to pay out a multi-million dollar claim if they could avoid doing so; because a driver had failed to disclose material facts that might have reasonably influenced the decision of the insurer to provide coverage.
that was almost right...and if anyone who has gone FI out there is keeping it a secret, you're only kidding yourself. By the way, my buddies in claims say, "what's up?" LOL disclosure people...tis key.
1) if we are talking about bolt-ons, even those are to be disclosed. Any official vehicle insurance application will have a disclosure section for modifications (Canada, U.S., Britain). Exhaust, headers, cold-air, plenum and other "bolt-ons" are mods, though mild. They are most likely (to some companies but not others) acceptable in terms of generating accurate premiums based upon rate groups for your vehicle. That being said, this is not always the case and must be disclosed, discussed and agreed upon if you are going to be indemnified given damage or destruction.
2) If you are engaging in something drastic (ie. FI) this is most likely going to require a specialty insurer (although this may change depending upon region). This is a difficult route if you want to ensure to be properly indemnified and yes, there are many companies out there (standard market) that just don't have the market positioning to insure these aspects properly. Research is key.
3) Quick side note, race and or speed tests are not covered. This is an example of a material fact in terms of use so, if you are, for example, tracking your car, don't expect an average policy to respond.
*Nut shell...we are in it...*
2) If you are engaging in something drastic (ie. FI) this is most likely going to require a specialty insurer (although this may change depending upon region). This is a difficult route if you want to ensure to be properly indemnified and yes, there are many companies out there (standard market) that just don't have the market positioning to insure these aspects properly. Research is key.
3) Quick side note, race and or speed tests are not covered. This is an example of a material fact in terms of use so, if you are, for example, tracking your car, don't expect an average policy to respond.
*Nut shell...we are in it...*
I took my receipts added them up and came up with a "Mod" number. I then checked the current value of my car and added those two numbers together.
I approached my insurance company with the spreadsheet and the receipts. I asked for a stated value that I wanted the car insured at. The insurance company insured the car for the stated value and increased the premium accordingly.
I recently totaled my car. The insurance company was unable to appraise the car do to the heavy modifications. They called in an independent appraiser to review the car. He stated the value higher than what I had it insured for and the insurance company paid with no problem. Of course it was the stated amount, instead of the independent value. I asked for parts off the car to make up the diff and was able to get them.
The main reason to do all of this is to avoid a situation where the insurance company starts talking about "actual value" a.k.a. depreciation on parts installed. This also allowed me to cover all the cost associated with install and body shop costs. I was looking to insure the car for a value that I had in it so that I would at least have a chance to replace it.
J
I approached my insurance company with the spreadsheet and the receipts. I asked for a stated value that I wanted the car insured at. The insurance company insured the car for the stated value and increased the premium accordingly.
I recently totaled my car. The insurance company was unable to appraise the car do to the heavy modifications. They called in an independent appraiser to review the car. He stated the value higher than what I had it insured for and the insurance company paid with no problem. Of course it was the stated amount, instead of the independent value. I asked for parts off the car to make up the diff and was able to get them.
The main reason to do all of this is to avoid a situation where the insurance company starts talking about "actual value" a.k.a. depreciation on parts installed. This also allowed me to cover all the cost associated with install and body shop costs. I was looking to insure the car for a value that I had in it so that I would at least have a chance to replace it.
J
Last edited by Rogue350z; Feb 20, 2007 at 09:26 AM.
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