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Modified car insurance in Ontario
I don't intend to get in an accident or anything but I'm thinking about modified car insurance after hearing a horror story from a friend who's car was written off in a not-at-fault accident and his insurance company denied his claim on grounds of failing to disclose modifications to his car.
I've spent some time looking into it and each company has their own limits regarding approved modifications. Some like Statefarm were fine with strictly appearance modifications like lip kits and wheels, others, like TD, will disqualify a car for running aftermarket exhaust tips. Unfortunately, all of them said coilovers and big brakes are out so I've got a problem if I'm ever involved in an accident. There is speciality insurance available for hot rods, classics and show cars from Haggerty or Lant but they won't work for me because they place too many restrictions to daily drive the car. The only thing I've found that will cover me is through Facility which I was quoted at $720/mo. For that much, I can get another car and insure that as a daily driver but I can't afford that either. I'm weighing my options but looking to hear from other people who have experience or knowledge with this. Nearly everywhere else has affordable coverage options for modified cars, usually involving regular inspections but I haven't been able to find anywhere in Ontario that's cool with it. |
I've never really thought of it this intensely. I've only ever really noticed the box marked "does the vehicle have more than $5k in mods".
I don't understand why a big brake kit nets you no coverage. You can stop faster to avoid an accident. And if you want to get real technical, most cars use coil over suspension in the front and rear. |
Insurance companies want no part in trying to deal with crappy upgrades making things worse than stock, especially when it comes to handling and braking.
Yes, good parts improve it, but bad parts can make things MUCH worse than stock. It's just easier for them to say "no dice" to everything. |
Well what counts as a modification?
If my car needs replacement parts and I opt for some aftermarket coils because they cost the same as OEM is that cosidered modification? If I use a non OEM replacement part is that considered modification. It seems pretty silly overall. I only had one experience with mods here in the US and the insurance basically didn't care they only said I had to bring the part to the shop and they only gave me the amount insurance covered I had to pay the rest. This was for a wheel so not a real "mod". I understand if it is some kind of complex mod that takes more work to replace/fix than OEM (say a turbo kit, air ride, someone hellaflushed with very specific suspension work) but a lot of parts bolt in and out just the same as OEM. |
Bolt in and out, yes... but might not be functionally equivalent to stock. OEM would mean 100% OEM, or OEM equivalent.
If you put in a set of really cheap coilovers and get into an accident because the valving was totally wrong for the spring rates and caused you to spin out at a reasonably slow speed when you hit a bump, who's fault is that? Should the insurance company pay out because you made the handling WAY worse and got into an accident? They're covering a car that has risk factors based on how it was originally built/sold, if you've changed something that alters what they think they're covering, they'll want no part in covering it. |
did your friend try to get money back for the modifications that he made after he totaled the car?
the general rule here is a don't ask don't tell if you wreck your car, assume that you're paying out of pocket for the replacement of any aftermarket parts, especially when it comes to suspension and shit. Aside from facility, you really do not have any options in the current insurance environment, and everything you do, including autocross and track, is at your own risk. If you wreck a car at the track, consider it a full write off, cuz if you try to go through insurance, you might win the battle, but you will most likely be black listed and never again have access to reasonable insurance rates and deal with facility for the next decade. |
^^ the real issue isn't not being covered for modifications, it's being dropped after an accident because of non-disclosure.
Most people don't care so much about mods not being covered as having coverage totally dropped (including liability). |
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I believe the issue only occurs if you try to claim money for those parts that you never told insurance about or if it's your fault accident. Like you modded the car to 400hp and was speeding and hit a car etc...than they could maybe dig deeper and deny you. So, just drive safe.
BUT, if someone hits you and it's not your fault they have to pay. If not, get a lawyer. When my Subaru got hit in a parking lot, (i saw it happen) i called insurance right away. Someone from the company came down next day, looked at the damage and wrote me a cheque. This is what the Subaru looks like. Clearly, not what a 2002 WRX is supposed to look like lol http://s33.postimg.org/m1i241p7z/WP_000239.jpg |
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It's possible the turbo is why he's having trouble but BelAir is only using vague language like "modifications" and "modified" for everything when discussing why he is being denied. Quote:
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I'm with coseco insurance, and every 6 months when I call to make changes (car going in and out of storage) they ask me if any of my cars are modified. Due to the paranoia.. my cars are more or less stock now.. BUT.. my last call with the ins co, I asked about making modifications. I specifically said suspension and wheel upgrades and the agent asked what the value would be.. i said 3-5k... She put me on hold... came back said so this is for performance reasons.. I said yes.. She put a note on my policy and just said to give them a call once I have made the modifications..
So basically for now I am going to assume I have the green light .. so mebbe next year coil overs :) |
If you don't want to get deny for insurance, don't mod your car, if you're ready to lawyer up and fight for claims, mod your car.
It's that simple, don't argue with opinions. |
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This. For. Sure. I'm already nervous about wheels, but I figure that it's the least of any adjuster's concerns. I figure that if I end up doing any real mods, the cost of the mod+totally legally insuring the car = Porsche Cayman + insurance + maintenance.... how fucked up is that?? |
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Anyways, it's called a Lawyer.
They have no way to prove that you did the mods or that you even knew what was OEM and what wasn't. For example, http://www.autotrader.ca/a/Scion/FR-...orup=67_15_133 There is a good chance a buyer will buy that car thinking that's how it comes because they are buying it from a dealership and unless the dealership states so, they will just think it's some special edition/ Another case, you went to a mechanic to fix your exhaust. He put a "oem" exhaust but it turns out it wasn't OEM and you didn't know. So what? Automatically your a tuner and were supposed to know? Most people don't even know where to put in oil in a car, yet alone know what exhaust is oem and what one is not. Many ways to fight this in court, where generally judges favor with the general public because they know insurance companies are never in the interest of paying there clients. |
Came across this on a friend's FB feed... there's a guy that can (and will) cover heavily modified cars for street use. You won't be dropped for track use either, you just aren't covered while on the track (like any insurance other than track day insurance).
Give Luc John a call at 905-977-1935, the friend that posted about it has an LS swapped Miata with a splitter, big wing, etc. Tell him you heard through Nikii Beis. |
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