Insurance question - related to modifying your car

[scotsman60]

Hello!!!


I plan on carrying out a series of modifications on my car that will see it eventually transform into a twin turbo. In addition to the motor upgrade I will be modifying the body, brakes and suspension.

I'm wondering how to handle insurance. Right now I'm with Allstate who cover my wifes car and my house insurance also.

Does anyone have experience or recommendations for how to handle insurance on modified cars? Are there specialist insurers out there who are knowledgeable about modified cars or will the regular insurers be aware of this type of situation?

Any and all experience and recommendation welcome.



Doug

[slater]

I happened to be sitting down the hall from a car insurance agent, and he told me that the the insurance premium and payoff would be based on the cars original value. If you wanted to add coverage because the car is worth more with the upgrades, you may be able to add an endorsment through the insurance company. Most likely to do that you would have to take pictures and prove (maybe with an appraisal) that the car is worth more. Basically, the more you are willing to pay for it, the more you will get if it is wrecked. If all you want is insurance to be legal, then you can get away with paying just what the original car is worth

[scotsman60]

Slater,


I'm less concerned about correcting the value of the car than I am with staying legal and maintaining coverage for third parties etc.

More power = more performance = larger premiums right?



Doug

[araine901]

Slater is 100% correct. the insured value of your car is based on the blue book or Fair market value of the car as it was when you started the policy. If you change stuff it will not change the laibility coverage. the place you will run into a problem is in collision and if by chance the car is stolen or damaged all of your add ons are not coverd. Basicly if you modify the car and do not add in additional coverage endorsments you are self insured for anything added on. But if you do addtional endorsments or a an agreed value for your car you will pay premiums acordingly. I hope this helps.

[Lukesportsman]

Just another example to say "THANK GOD WE LIVE IN AMERICA"! There was an article this month in a weekly publication that discussed how a Canadian lost his insurance because he put in lowered springs in his Saturn. Yes, it is true...A fifty year old man with some custom graphics and handling springs was told that his car was uninsurable until he had stock heigth springs replaced and verified by a third party. They were/are so scared of "Fast and Furious" racers that they have installed these weird rules.

My insurance man told me that my 550 hp 69 Mustang was a low risk commuter car because it didn't say GT on it

[Joe Bob]

Stated value insurance....common issue, tell them what you have, what it's worth TO YOU and then they quote it....

[aigel]

I have asked my former insurance guy about performance upgrades. He said the insurance only cares what the car was to begin with, and from there they do their premiums. I think this is rather unique, in the US. Other countries are like the Canadian example above.

On a 911, the premiums aren't cheap to start with, but if you are talking about a modified mid size american car, you can have cheap insurance on a 500hp monster ...

I'd talk to the agent, just to make sure. If you trust the agent, that is. You want to make sure that he or she doesn't freak out and do something stupid. I always find a trustworthy agent, they are out there. Speculative questioning would be a good idea too.

George

[araine901]

THat becuase the 500HP monster is generly housed in a $50 Nova. I was at the Pomona Auto swap meet once, There was this tweeker selling a 70s Duster that excluding the motor and usa mags an gabrile Hi jackers was stock. The problem was the motor was a 600HP blown hemi with 900HP on NOS. SO the stock suspension and DRUM BRAKES meant this thing was a weapon not a car. But I bet his premiums were low. LOL

[tsuter]

Like Mike Z says - get "stated value" unless you're driving a beater and don't care that you're only gonna get $9000 residual value.... maybe...

[dickster]

sounds like you guys have got it easy. in the uk, you have to tell the insurance company about EVERY MOD - and you may be required to get an engineers report if you have gone for more power to make sure things like brakes are up to it.