Insurance and modding

[cody]

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...

[sybir]

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?

[ArthurS]

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.

[cody]

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 have State Farm. State Farms does not charge for insuring aftermarket parts. With State Farm you need to keep receipts and take before and after photos. This is proof you will NEED provided something happens. If the car becomes a loss, they will reimburse me the blook book value of the car, along with the cost I paid for the parts (Not depreciated value, if I paid $10K they give me $10K). They do not pay for install costs, as far as I know, and I am not sure about tuning....but that stuff usually is not that bad. EXPECT the claims process to take ALOT longer with issues like this. The wife and I had a car stolen and stripped about 2-3 years ago. There were aftermarket parts on it. State Farm took about 2 months, they got us a loaner car in the mean time, while they investigated the incident. They wanted to make sure that we were not involved at all (standard thing apparently for claims larger then the blue book). In the end State Farm cut us a check for the blue book value PLUS the aftermarket parts. They did not drop us, and I do not believe they changed our rates.

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.

[MikeSTI]

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

[cody]

Originally Posted by ArthurS

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.

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.

[cody]

Originally Posted by MikeSTI

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

Ha, Hey Mike

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.

[ArthurS]

Originally Posted by cody

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.

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.

[cody]

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.

[doubleurx]

Originally Posted by sybir

I have a difficult time seeing an insurance company denying a claim becuase of a lowered car or a bigger turbo.

However, 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.

Wait what?

[sybir]

Originally Posted by doubleurx

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

[doubleurx]

Originally Posted by sybir

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.

[sybir]

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

[Evo Mike]

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.

[sp00ln]

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.

[MikeK]

Originally Posted by Evo Mike

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.

OMG!

[tysonK]

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

I'm way fucked.

[LetItRev]

Originally Posted by MikeK

OMG!

INDEED!! That's Insanity!

[Kevin M]

Originally Posted by tysonK

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

I'm way fucked.

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."

[ArthurS]

Originally Posted by cody

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.

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.

[ArthurS]

Originally Posted by tysonK

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

I'm way fucked.

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.

[cody]

Cool, thanks Arthur.

[sp00ln]

Mike, when did you crash your evo?

[Evo Mike]

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.

[zpeed]

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!!