Does modifying your car void your insurance??? - LotusTalk - The Lotus Cars Community
 
LotusTalk.com is the premier Lotus Forum on the internet. Registered Users do not see the above ads.
Reply
 
LinkBack Thread Tools Display Modes
Old 06-08-2011, 08:33 AM   #1 (permalink)
Registered User
 
Join Date: May 2007
Posts: 349
Does modifying your car void your insurance???

My insurance agent just called and told me that progressive refused to pay to repair an m3 that was in an accident because it was a "modified vehicle".

The guy had aftermarket brakes, exhaust and a chip. He rear ended a car that he said stopped quickly in front of him. He was not issued a citation, na dhwen he reported the claim, they said no problem.

When they sent an adjuster he noted the aftermarket parts but didn't say anything to the owner. A week later they notified him they would not be paying for any repairs as he had " modified the vehicle making it illegal for street use".

He complained to his agent who then contacted the insurance company . They told him they are not covering cars that have been modified from factory specs.

Is this true, and if so, are you guys comfortable being uninsured in the event of major accident?

Last edited by dukenyc; 06-08-2011 at 08:34 AM. Reason: Typo on stupid ipad
dukenyc is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 06-08-2011, 09:12 AM   #2 (permalink)
Registered User
 
fitfan's Avatar
 
Join Date: Jan 2004
Location: San Diego!
Posts: 6,518
no, but they will not cover any increase of aftermarket parts. only to "stock" claim.
__________________
"I really started paying attention to cars was when they came out with the Nissan Z, the first body. Then I seen the Cherokees, the old square ones, and I was like, “Wow, that’s cool.” Then I seen the Isuzu jeeps and I seen the Wranglers."
-Lotus Cars VP of Global Design
fitfan is offline   Reply With Quote
Old 06-08-2011, 09:12 AM   #3 (permalink)
Registered User
 
Demonized's Avatar
 
Join Date: Aug 2008
Location: New Jersey
Posts: 2,793
I've heard of aftermarket parts not being covered in the event of their destruction, or not being considered in value in the event of a total loss... Never this, though.
__________________
2005 Saffron Yellow Elise (Sold)
Demonized is offline   Reply With Quote
Old 06-08-2011, 09:15 AM   #4 (permalink)
Registered User
 
philethier's Avatar
 
Join Date: Jul 2008
Location: Minnesota
Posts: 2,097
Read your policy for starters. If you still think they are wrong, call the state Insurance Commisioner and complain.
philethier is offline   Reply With Quote
Old 06-08-2011, 11:20 AM   #5 (permalink)
Registered User
 
Join Date: Dec 2010
Posts: 477
Was his cat removed? Why do they say the car is not street legal?
RCCola is offline   Reply With Quote
Old 06-08-2011, 11:45 AM   #6 (permalink)
Registered User
 
carphoria's Avatar
 
Join Date: Jul 2010
Location: Northern California
Posts: 991
If it passes the state inspection, it should be covered, is a good rule of thumb. Read your policy, but generally, there is an additional rider to cover loss of the aftermarket parts, but it should not affect his claim against damage to the stock vehicle.

EDIT:

I noticed that he had aftermarket brakes, and the accident was him not stopping quickly enough. He probably just has to prove that the brakes were street legal, and as good/better than stock.
__________________
2006 Exige KoldFire270 SOLD
2009 Brunton Stalker SS

Last edited by carphoria; 06-08-2011 at 11:46 AM. Reason: added information
carphoria is online now   Reply With Quote
Old 06-08-2011, 11:53 AM   #7 (permalink)
Registered User
 
Join Date: Mar 2011
Location: Seattle
Posts: 189
Quote:
Originally Posted by carphoria View Post
If it passes the state inspection, it should be covered, is a good rule of thumb. Read your policy, but generally, there is an additional rider to cover loss of the aftermarket parts, but it should not affect his claim against damage to the stock vehicle.

EDIT:

I noticed that he had aftermarket brakes, and the accident was him not stopping quickly enough. He probably just has to prove that the brakes were street legal, and as good/better than stock.

I bet you're right about the brakes being the reason. Hopefully he can show/prove that they were installed correctly by professionals.
Kristo03 is offline   Reply With Quote
Old 06-08-2011, 05:50 PM   #8 (permalink)
Registered User
 
Join Date: Apr 2009
Location: Statesville, NC
Posts: 310
When dealing with insurance companies, the L word opens up a lot of doors.
__________________
2005 Krypton Green Elise
Innovative 60a engine mounts
Sector111 RTD Brace
Lotus Sport Suspension
DBA4000 rotors
Machined carpet buttons!
Savet is offline   Reply With Quote
Old 06-08-2011, 07:09 PM   #9 (permalink)
Registered User
 
Join Date: Mar 2010
Posts: 269
Quote:
Originally Posted by Savet View Post
When dealing with insurance companies, the L word opens up a lot of doors.
To be honest it actually closes them. I work in claims and as soon as someone utters the "L" word, we just tell them to have their legal counsel contact our legal defense team, send in a letter of representation, and then the owner gets cut out of the claim entirely as we are then only allowed to talk to their counsel. (Which is an incredibly slow, bureaucratic process btw.) No more negotiations or discussions can be made with the claimant/insured at that point . . .

PS: Not to mention the fact that getting an attorney involved for an auto claim not involving an injury is very hard to do because there is little money in it for them. Unless you have a family member or friend who is an attorney and willing to waste his time, most will send you elsewhere. Insurance Companies know this.

Last edited by KirkScheidt; 06-08-2011 at 07:15 PM.
KirkScheidt is offline   Reply With Quote
Old 06-08-2011, 11:56 PM   #10 (permalink)
Registered User
 
squidward's Avatar
 
Join Date: Mar 2010
Location: Bikini Bottom
Posts: 5,196
Images: 19
Garage
^^^ that's right.. they will basically drain you with their in-house attorney. at the end of the day they'll still be ahead of you financially.

They will do everything they can to make the process as slow and painful as possible. It's their way of deterring you and others from even considering suing them. They will always win, because you would have spent so much time and energy, whereas for them, it's their job to save the company money and make your life a living hell.
squidward is online now   Reply With Quote
Old 06-09-2011, 02:59 AM   #11 (permalink)
Registered User
 
XHILR8N!'s Avatar
 
Join Date: Dec 2006
Location: 2 laps down
Posts: 4,267
Images: 14
Garage
Insurance and Mods
__________________
Anyone can make something complicated. It takes genius to make it simple. Einstein.
2011 Evora S Racing Heritage Edition (#3 of 4)
2005 Elise LRG, Trim Shop interior, full cage, Cup wheels, BWR 'charger lives!
1974 Lotus Europa Special 3841R in JPS livery (home again!)
2007 Toyota Tundra (about 10 cup holders) 2008 Audi A4, 2007 Audi S4 DTM
1980 Rover SD1 (new home)
XHILR8N! is online now   Reply With Quote
Old 06-09-2011, 05:01 AM   #12 (permalink)
Registered User
 
brgelise's Avatar
 
Join Date: Sep 2005
Location: CT
Posts: 3,135
Images: 11
You get what you pay for: Progressive and that ugly wench that headlines their advertising. Hell, even the gecko looks better (after being flattened). So much for your savings!! Buy top shelf, know your agent well!!
__________________
10 Lotus Evora Persian Blue, Charcoal Leather w/Ivory header
08 Isuzu Ascender Lux Flint Grey, Grey leather
11 BMW Xdrive35d, Vermillion Red w/Cinnamon Brown Leather
12 Jaguar XK Coupe Claret Red, Caramel Leather
brgelise is offline   Reply With Quote
Old 06-09-2011, 05:15 AM   #13 (permalink)
Registered User
 
Join Date: Jun 2010
Posts: 56
I am in Ontario and a modded vehicle gets you a denied of claim and insurance. I added an SC to my 99 Miata over the winter and when I went to put coverage on it last week I was told that the company (And no company operating in Ontario) will insure a modded vehicle. Just imagine how many Jeeps with lift lits and Pickups with Big rims that represents. All these people have to lie to their insurance company to get coverage, which means that they do not actually have coverage. The insurance industry obviously knows this and is taking money for nothing. Ontario has the most draconian Insurance /Government anti hotrodding and mod position of anywhere in North America. Beware, this might be spreading everywhere. Supposedly just gauges can get your policy denied here. If you want an SC Elise and live in Ontario, better buy one made that way from the factory, as there is no way to add one later. (legally) You can mod vehicles older than 15years and get coverage. I have about ten hours on the phone to no avail and will be reluctantly stripping the Miata back to stock at great expense of time and money. .
Kula is offline   Reply With Quote
Old 06-09-2011, 05:40 AM   #14 (permalink)
Registered User
 
brgelise's Avatar
 
Join Date: Sep 2005
Location: CT
Posts: 3,135
Images: 11
Use one of the Collector car companies like Grundy, Haggerty, Chubb etc. Either that or never mention mods and if a claim arises assume those mods are a loss just like they are usually when you trade in or sell vehicle. You did it for fun remember?
__________________
10 Lotus Evora Persian Blue, Charcoal Leather w/Ivory header
08 Isuzu Ascender Lux Flint Grey, Grey leather
11 BMW Xdrive35d, Vermillion Red w/Cinnamon Brown Leather
12 Jaguar XK Coupe Claret Red, Caramel Leather
brgelise is offline   Reply With Quote
Old 06-09-2011, 09:34 AM   #15 (permalink)
Puff Daddy
 
Bane's Avatar
 
Join Date: May 2005
Location: Earth
Posts: 3,770
Images: 4
I have my Exige covered with an agreed value under a collector car policy.

I wouldn't use a standard insurance company for a heavily modified car that isn't driven daily. USAA was honest enough to tell me to go to to American Collectors Insurance for the Lotus since it was a better fit (and much cheaper).
Bane is offline   Reply With Quote
Old 06-17-2011, 10:02 AM   #16 (permalink)
Registered User
 
Join Date: May 2007
Posts: 349
Sorry, been away for a bit.

He has still not settled the claim.

They are claiming any modification which affects the vehicles performance and was not tested when the vehicle received NTSB approval, voids the insurance as they insured it based on manufacturers safety standards.

I'll follow up when there is more information.

Bane, good tip on the collectors insurance.
dukenyc is offline   Reply With Quote
Old 06-17-2011, 10:31 AM   #17 (permalink)
Registered User
 
KingNikan's Avatar
 
Join Date: Apr 2011
Location: New Jersey
Posts: 265
Quote:
Originally Posted by brgelise View Post
Use one of the Collector car companies like Grundy, Haggerty, Chubb etc. Either that or never mention mods and if a claim arises assume those mods are a loss just like they are usually when you trade in or sell vehicle. You did it for fun remember?
The thing is a company like Haggerty won't insure the car if it is your daily driver. You need to have some kind of evidence that you have another car that is a daily driver.
KingNikan is offline   Reply With Quote
Old 06-20-2011, 05:45 AM   #18 (permalink)
Registered User
 
Join Date: May 2007
Posts: 349
The insurance company is saying they were not told the car had been modified from the "approved NTSB condition" upon which they based their rates, and that have no responsibility in the event of a claim.

Apparently, they even used the word fraud in relation to the fact that they issued the policy on an M3 as manufactured by BMW, and the insured was obligated to notify them if changes were made to the car that would effect its performance or drivability.

He is out almost $24,000 out of pocket, and that does not include fixing his own car.

Any insurance experts or lawyers care to offer their thoughts?
dukenyc is offline   Reply With Quote
Old 06-22-2011, 07:27 AM   #19 (permalink)
Registered User
 
Join Date: May 2007
Posts: 349
Does the resident I surname agent/expert care to comment?
dukenyc is offline   Reply With Quote
Old 06-22-2011, 12:40 PM   #20 (permalink)
Registered User
 
MotoGeek's Avatar
 
Join Date: May 2010
Location: Redmond, WA
Posts: 2,284
Are they going to at least refund the premiums that were "fraudulently" collected?
MotoGeek is offline   Reply With Quote
Sponsored Links
Advertisement
 
Reply

  LotusTalk - The Lotus Cars Community > Lotus Discussions > General Discussion (Lotus related) > Insurance



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -8. The time now is 05:49 AM.


Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.3.2
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.