Topic: do insurance companies deny coverage if the car is modified ?

[picard]

do insurance companies deny coverage if the car is modified? I am refering to family sedan that is modified to increased horsepower or add larger rims

[jbbadboy]

It all depends on the insurance company and modifications. In general, with your standard market companies (not high-risk), if you bought a set of aftermarket rims that didn't cost "an arm and a leg" you should have no problem. The same goes for modifications. Putting in a K&N air filter for example won't result in a denied claim, but a NOS system would.

What you should worry about is a company denying a claim for material misrepresentation or non-disclosure. If your company is charging you a premium for a stock vehicle and should an insurable loss occur to this vehicle, do you blame the company when all of a sudden this "stock" vehicle claim turns out to have non-stock oversized rims, an aftermarket skirt, wing and lowering package along with a $5000 stereo installed?

[ArticSteve]

Rims no.  Engine mods possibly.  Lite engine mods probably not.  Unauthorized or undeclared Superchargers and NOS definitely if accident can be in any way associated with their use.

It's important to identify what type of loss.  Being denied coverage on a burned up car or damaged car is not usually the end of the world.  However, being denied liability coverage can bankrupt an owner and or driver.

I should also mention the worst part; in Ontario if a judgement is registered against you as a result of a motor vehicle accident the plaintiff that holds the judgement (almost always an insurance company) they can and will apply and have the defendants driver's license suspended until the judgement is satisfied, which is usually lifetime.  This only applies to the driver and not the owner.  I do not know if  personal bankruptcy negates this.  I suspect it does.

[picard]

what about adding a performance muffler to accord? would comprehensive coverage be denied if insurance company know about it?

[barrie1]

Being a owner of a modified Show Vehicle I have had to have this vehicle appraised for Market value. A lot depends on who you are with and the mods done to the vehicle in its own class and right. I stayed with the standard 15" sized rims on my truck but tired up a few notchs on the rear. 265x15x70.  The front are 235.x15x70 they are the same height in the stance and rake of the vehicle. The body I left stock but under the hood is where the major stuff was done. Even my rad is 4" thick aluminum and the engine is fully dressed with headers and a hi-rise 4b carb. My appraiser said at the time they may not like what I did and wrote it all up with an explanation of me building it this way to tow a large trailor. Extra heavy duty cooling and exhaust and so forth. Ya right. It worked. Every Comapny is different so learn what their beefs are in advance if you can. Certain things only make the car a better vehicle and they know it. 

[ArticSteve]

what about adding a performance muffler to accord? would comprehensive coverage be denied if insurance company know about it?

No.

The main issue that owner's need to address when it comes to performance mods is how their liability insurance might be affected.

[Triple Bob]

I'd be surprised at that?

I had to declare an exhaust mod, even though my insurer is great with these sort of things and charged me nothing, they still need to know about it.  I'll do the same if I fit an induction kit.

Simple advice, check the small print; secondly, don't take advice on insurance/legal aspects from an internet forum (not referring to you specifically here Steve  ), as we're not the ones that will have to pay up if your insurers don't.

 

[dr_spock]

Read your policy and any fine print it may contain.  It'll spell out what's covered and when coverage will be denied like if you used your car for racing. 

[johngenx]

My own policy is very clear about some items, like aftermarket audio equipment and non-OE wheels/tires.  The main part is a limitation dollar-wise on the potnetial claim.  I can't install a $50,000 stereo without their knowledge and then file a claim based on the value of the new equipment.  There is a limitation spelled out for any non-OE equipment.

This makes sense to me.  If you want to put on $15,000 worth of wheels and a $50,000 audio system, then it's up to you to ensure it's insured. (neat word play)  Insurers base their rates on factory vehicles.

Jeez, I just sided with insurance companies.  Guess Hell will be competing in the 2010 Olympics with a skating team...

[avtoller]

Don't worry too much about it John. I've come to realize that a lot of things I don't like still make sense, and some are even fair. 

[Traum]

When I was in Ontario, TD Insurance explicitly told me that my insurance would be voided if the car is lowered.

-Rick

[barrie1]

Your age and the type of car may have had some bearing on that. If a young guy does this with a sporty car they will figure out why pretty quick. 

[ArticSteve]

don't take advice on insurance/legal aspects from an internet forum (not referring to you specifically here Steve

Thanks BOB, I made a pile of money taking away every cent from ppl who by circumstance, most of it not deserving, got "third partied" by their insurance companies.  When you get added as a third party to a loss of some sort it means that our insurance company has decided to collect everything that they pay out to a plaintiff from you because you have breached conditions in the policy (very general explanation).

Traum is correct.  Lowering voids a policy unless it is a factory option.  Intake mods other than an aftermarket air cleaner voids the policy and a few other things as well unless they are speficially endorsed.  However, policy voids are decided on a case by case basis and it is quite random, but when it occurs one is absolutely screwed.