Insurance and modding
 

Hey guys,

I have a friend who told me I shouldn't have modded my car because now if I get in an accident, not only can the mods be blamed for the accident, but my insurance company can deny my claim.

Discuss...

Your friend has incomplete information and is using a scare tactic becuase he doesn't understand the purpose behind modding a car.

That statement is just as vague............

There are some things, like removing airbags, that can cause problems with insurance if they're not already declared on the policy. I have a difficult time seeing an insurance company denying a claim becuase of a lowered car or a bigger turbo.

However, if you put on aftermarket fuel rails without any external protection, and a passenger is injured becuase of an engine fire, your insurance company might have grounds to deny your coverage because you circumvented safety mechanisms. Same with cutting up your bumper beam for a front mount.

Those are just some examples, but I'd think every situation is going to be different. What specifically are you worried about?

Sybir is right. If you alter your car in ways that can harm the safety to yourself or passengers (airbags, seatbelts, etc) then a insurance company can deny a claim.

But, Nevada allows up to 5,000$ of aftermarket parts that increase safety of a vehicle. Insurance companies themselves can and normally will inlcude the cost of your aftermarket parts if you have kept records and receipts from the part and install.

The biggest issue is that when people 'total' a car, they normally take the first amount the adjuster gives them. You can always show a adjuster proof that your vehicle is worth more.

If you need to know more, let me know and I can get specifics.

Well my current mods are:

Heat Wrapped Headers, Borla Hush CBE, Crucial UP & DP, Omori Boost & EGT Gauges mounted in an Autometer 52mm Bezel Pod, Gun Metal Rota Torque 17's, Yoko AVS ES100's, Eibach Pro Kit Springs, KYB AGX Struts, Fumoto Oil Drain Valve, Rock Blocker Clear Bra, K&N Drop-In, Mr. Josh's Solid Endlinks, Intake Silencer Delete, and an '02-'03 Sedan Rear Anti-Sway Bar. ECUTek Tune coming soon...

So I don't think I have much to worry about, but I assume some states may be more anti-mod than others. I mean if my supposed 227 hp car has 300 hp and I get in an accident that isn't my fault, I don't want to find out my mods automatically endite me.

I should call my insurance company and ask them their policy, but even if they say I can mod, that doesn't mean they'll necesarily protect me from a lawsuit that claims my mods caused an accident. I'm hoping for some NV specific experience.

I started a similar thread on WRXF and Fireguyrick claims State Farm will reimberse him for all of his mods as well as the blue book of the car if he totals it. I find that amazing, but he has already taken them up on this offer with a previous car and aside from a two month investigation, they paid up.

Here's the quote:
I mean there are several potential issues here. My insurance company could try to weasel out of repairing my car/other cars, other drivers could sue me for negligence or somthing. I don't know.

The only way you could be denied for a crash + mods would be if you where cited for street racing when it happened.................

otherwise its your car and as americans we must mod our cars :devil:

Hey Arthur, that's some good info. Can you please elaborate on the law you eluded to. What happens if you have more than $5000 in parts that increase safety? What if I have some parts that make my car faster?

BTW, I do need to upgrade my brakes...I know this.

Ha, Hey Mike :D

I think I need to get out of the CA mindset and start seeing that in NV, freedom reighns...or somthing. In CA you can get sued for serving hot coffee. :huh:

Yea, I'll try and find it. I just heard this from a adjuster, but I'll try and find the statute. I believe that the insurance companies 'must' repay up to 5,000$ if the person can show proof of the purchase and install of the part by this statute. I think that after 5k, its up to the insurance company. I have seen some of my clients get paid a lot more over 5k for parts after a total loss.

Let me call around and get some clearer description of this.

Thanks Arthur. What company do you work for, if I may ask. If Esurance doesn't reply favorably to my email, I may be in the market for a replacement in a few months.

Also, it sounds like it isn't a potential issue, but to be clear, is sombody who adds power mods increasing their risk of being accused of criminal charges in the event he causes or is involved in an accident? I'm not talking about removing safety equipment, that is criminal AFAIK. But I mean upgrading your turbo and such.

Wait what?

I'm not saying conclusively, but they could thoretically say that by modifying the crash structure that you weakened the frame or something. Again, nothing colnclusive, but I suppose I could see the argument. We know it's not merited, but that's not always our decision :|

OK so now I need to build a huge cage on the front of my car. I'll bring some sheet metal next week. You get the arc welder ready.

Screw that, I'm using bits of string and pencil shavings!

OKAY, here's what i've found with my experiences with insurance companies. you pay for the insurance (for example 6 months). By paying for it, it's sorta like a contract that you GET the coverage you paid for. They really can't deny you anything unless you for example take out your airbags, seatbelts, etc. If your car is modified, they can adjust your policy AFTER they find out in your accident.. Of course your premium will go up, at least you will be covered for the OEM parts and whatever damage you caused. Another thing that i found out is, if you pay by biyearly or like in 6 month payments, the insurance company cannot adjust your policy for tickets, accidents, etc, until after the 6 month period is over.. i think my premium for my evo before i crashed it was about 1800 for 6 months.. then after that 6 months was up, it got increased to about 3400 for 6 months. point being it was not until AFTER, it was increased.

anyway just my experiences.

I can give you information from first hand experiance:

About 3 years ago, my car was vandalized and robbed of about all my performance mods. Needless to say, I had pictures and receipts of everything. Insurance covered everything. Even professional install - right up to the prices of where my car would be considered totalled. Just be professional about it and you'll be fine.

OMG! :eek:

Great I don't have receipts for anytthing and I have removed seat side-airbags.

I'm way fucked.

:eek: INDEED!! That's Insanity!

All the pictures you've taken go a long way toward coverage. As for the airbags, it would have to be a collision where they can argue more personal inuries occured because they were gone. If you get rear-ended or something, you're okay. I mean, you're covered... not necessarily "okay." :|

I work for allstate. Adding power mods technically will not increase your risk. Its your car, you have the right to do what you want with it as long as you aren't risking others on the road (large spikes in front bummer, blades spinning from your rims..lol).

But it is important to talk to what ever company your with to see what exclusions their policies do carry. For exmaple, street racing related accidents may not be covered, track/legal racing accidents are not covered, accidents while under the impairment of a drug may not be covered, etc etc etc. Best bet is to talk it over with a agent or adjuster from your comapny.

Meh, maybe I pushed the receipts thing a little far. Unless you get a prick of a adjuster, you should be fine with getting compensation for your parts.

Cool, thanks Arthur.

Mike, when did you crash your evo?

i crashed it last april.. well last LAST april, so like 15 months ago. Anyhow, the insurance rates have gone down since then and i think my brother and I are paying about 2400 for 6 months.. not per/person.. but together.

When I totaled my 1990 Talon I got only $4000 out of it (with progressive). I have all receipts come up about $15000. Nada nothing..... I'm with a good hand now. Is that right Arthurs!!

Okay this is a bit of a hijack, but it was the nearest insurance thread I saw.

Art - when someone makes a claim to get collision damage repaired on a car, their premiums usually go up afterwards, right? Do you know typically how much they increase (%), and for how long the increase applies (if not indefinitely)?

Ruh-roh, Shaggy! What did Laura crash into this time? :P

If someone filed a collision claim for a accident that was their fault, the rates do go up. The amount they go up depends on each company and how long you are with them. Sometimes if you have been with a company for a long time, they waive the surcharge for the accident which helps, but you still lose the good driver discount. If they do not grant you the waiver of surcharge, then you will be surcharged for the accident and you will lose your good driver discount on that vehicle.

The surcharge will stay on the record for 3 years after the claim date (again depending on the company rules and guidelines). You normally get a good driving discount back after 3 years, or sometimes even 5 years if the company has multi-tier good driver discounts.

To give you a rough idea, I would say the rates of that vehicle would go up 20-30% or so. Best idea is to call the agent and give them a hypothetical situation (like 'what if' this happened) and ask them what the new rate would be.

Okay thanks.

Ugh. It wasn't Laura. Let's just say the Corolla needs some quarterpanel & bumper repairs. I'm trying to figure out if it's even worth it to try an insurance claim, or if I should look into other avenues...

its best to fix it out of pocket with parts from a wrecking yard. I only say that because I have been seeing a lot of cars that are verry much fixable and insurance companies totaling the cars due to cost to repair vs. value

Here's more personal experience:

In 2004, I had 2 cars totalled, in both cases State Farm offered me only an adjusted price for mods. On the rx8, their adjusted price for 3 month old Racing Beat catback was $200, (a $600 part) - so I told them no thanks on their adjusted reimbursement, and Kevin helped me remove it from the car before it went to the wrecking yard. At least I was able to sell that part to another rx8 owner & recover some of the cost.

Also on the rx8, they would not cover any costs for the clearbra. Their rationale was that it did not add any value to the car.

That's really weak.

and really shocking.

considering the amount of sand damage claims I would say the clear bra was the most valuable part of the car :eek: