Hey guys, I wanted to share an experience I had today. There hasn't been an absolute outcome as of yet, but I'm anxiously waiting to see how this unfolds. This is just a FYI of what could happen to the large majority of us as owners of modified cars. And hopefully for anyone who has a lot of insurance experience or knowledge of a company (in Canada) who will insure appraised cars at affordable rates.

So I have an on going car claim,

-Not at fault claim, damage to front bumper, fender, headlight and hood. Basically only body damage. A pick up truck backed into my parked car while I was in a store buying oil. I luckily saw it and got the guys info
-Deemed fixable, no deductible, they’ve approved the body shops quote and said it will be fixed within 10 days. (Good friend's body shop, luckily)
-Seemed to be ok, even tho my car got smashed up

Today my adjuster asked me about modifications and if I had any done to the car. Because they saw a "blue pipe" in the pictures sent in by the appraiser while the front bumper was off. (cold air intake) I asked why and they said if there are performance modifications to the car they can neg the claim and drop my insurance. They don’t and will not insure modified cars.

This was a surprise to me, call me stupid, but it was never made known to me prior to this. I got a chance to email an underwriter at the company, off record, through a friend and shared the story above. I also asked,

"If they deem I have modifications and don’t want to insure me, OK, that’s their choice. Can they neg my ongoing claim? Also, what do they deem as “modifications”? If I have a pickup truck and change my exhaust to sound “cooler”, that’s technically a performance modification. It might at +1 HP. Now say I get in a bad accident on the highway and I’m in the hospital. Do they see the exhaust, neg my claim and drop me? Kind of scary!!"

He pretty much answered yes. They can drop me anytime, and neg a claim if they find any performance mods. They would drop the policy effective to the date you installed said parts, and you'd be SOL. He went on to say what they deem as mod parts is interpretative and really depends on who's looking into it kind of thing. Basically if you have a performance exhaust, they technically can drop you. If you have an aftermarket turbo set up installed that adds 100 whp, and they find out, they will definitely drop you. And if you had a claim, they would absolutely negate it.

So.. Leaves me in a venerable spot. for future piece of mind, anyone out there insured thru an appraisal at an affordable rate??

Cheers

 

Thank you for sharing Nate.

 

If they're refusing to cover your repair I would suggest contacting an insurance lawyer and see what they say.

 

Sorry to hear about this.

Out of curiosity, does anyone have an insurance company that will insure modified vehicles (in writing, not verbal assurance from a non-affiliated seller), other than say Haggerty, etc? I suspect this is simply a situation where an insurance company is choosing to use this excuse to avoid paying a claim. I suspect they could all chose do the same.

 

I'm with RBC and that line about dropping due to modifications sounds familiar. I asked if it would be a problem for me to install a CAI in my MS3 and they said cosmetic mods are fine but anything that changes the engine's performance properties would result in termination of my policy. So I have a Speed3 that's mechanically bone stock.
BelAir used to have a fairly relaxed policy towards mods (up to $x permitted) but I left them ages ago.

 

Find out if dealer installed accessories, or dealer approved modifications are considered "modifications" or not. By "blue pipe", I'd guess you have an AEM, which is approved by dealerships, since they sell the same one with a Mazdaspeed sticker slapped on.

Most legal liability stuff against modifications has an exclusion for stuff approved by dealerships.

 

Hey guys,

Thanks for the comments. Looks like they`re leaving it alone now..

After the adjuster called me to ask about the `blue pipe`they saw in the photo`s, they called the appraiser at the body shop(my friend) and grilled him about mods on the car. He said the air intake was painted blue and that's all he noticed. Like I said, lucky its at a good friends shop because I`m sure anyone who didn't know me would of sided with the company giving them work, over me and my car. Also lucky the car insurance adjuster seems to know nothing about cars. They didn't mind the intercooler mounted to the frame, I guess they just think blue pipe means performance mod.







Anyway, the cars being painted today. Should have her back soon. Also after speaking with a couple brokers I`m leaning towards Aviva. I`m told they will insure a modified car, with an appraisal. There will obviously be a premium to it, but it means the cars value will be higher and in the case of a total loss the pay out will be reflective of the cars actual worth. And depending on the type of appraisal done, they will pay full appraisal value. Good option for those heavily modded, I doubt most companies would care solely about a CAI, but as per the conversations I had with the under writer, they could. And possibly came very close in my case..

 

^ Do you actually run the car without a crash bar?

 

lol no, they had it off to work on the car. Safety first

 

Nate, Thanks for sharing this story.I am glad it all worked out for you :-)

I was just thinking call my insurance and ask them if they'd insure my aftermarket parts and wheels and etc.

I guess i'll have to call anonymously now..

All the best.

 

I know this thread is a bit older but I am going through a company that specializes in appraised cars. I can get full coverage as a 26 year old with a clean driving record for $200 a year. It can't be your daily driver and there is mileage limits but you are covered for the full appraised value which my appraisal came in way higher than what I thought. Don't know how a lightly modified car would work under my broker but it's worth some research maybe.

 

What's the name of the insurance company??

 

I work in the insurance industry and was a sales and service agent for about 4 years. I am now an underwriter. After market modifications are not accepted by most insurance companies. Cosmetics are usually ok (Rims, Lips, changing lights. stereo, etc.) but any performance enhancements to the engine or anything to make the car "faster" is NOT accepted. Also aftermarket suspension. It also depends on your story. You can simply say it came with the car, I didn't know or the part came from the Manufacturer (Mazda Speed Intake, Mazda Speed exhaust). If it came from the dealer like that or its a dealer part than its usually ok. Also, any modifications are not covered from most companies so if you have a CAI and it gets damaged or an aftermarket bumper, they can put in a regular air box back in or stock bumper. It is always best to be honest or you can have a claim denied or cancelled for misrepresentation. Hope this helps! And I am glad the car got fixed.

 

The name of the insurance company is TSG Insurance & Financial Services under the Legends Insurance name (legendsinsurance.com). It is based out of Calgary, Alberta so I don't know if it works out of province or not but there might be something similar elsewhere.

 

Ya looks like it's Alberta only. Thanks for the info tho, maybe it will help out someone else.

Cheers