Quote:
Originally Posted by gdrider77
Most insurance reps are clueless and don't realize that people will put $10-30k in aftermarket into a car.
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It's not the reps. Reps are just salesmen. They don't make those decisions. The underwriters determine what will actually be covered.
And the underwriters do realize that people put tens of thousands of dollars into their cars. They simply choose not to insure highly modified vehicles because the actuaries tell them they're not profitable. Insurance companies are all about making money. The premium they charge you is revenue. Claims are a cost. If a particular situation produces more cost on average than revenue, they're not going to insure that situation. If they're not offering coverage on highly modified vehicles, it's because their research tells them those vehicles result in more claims and other costs than the revenue they bring in. Or it simply introduces too much uncertainty, since you no longer fit the actuarial models.
I can see how that might happen. Why mod your vehicle if you're not going to use the mods for more speed or more aggressive driving? That would make you a bigger risk.