Mods vs. Insurance

[firstmazda]

I just got a questionnaire in the mail from my insurance company for next year\'s renewal.

ANYWAYS,
There\'s a section that asks if the car is modified in any way. I was wondering if any/all of you
admit to the insurance company about these things and if there is a way for them to find out
if you\'re lying.

I don\'t have any major things. Basically: Lights (wanna upgrade again to HIDs), and a drop in K&N filter. (No CAI or SRI, simple drop in replacement)
Do I still have to claim these things?

Thanks,
Ray

[bluntman]

I would say no because in the future you can always claim ignorance and that their definition of \"modifications\" was different from what you define as a modification. Of course, if it spelled out in the paperwork what a modification entails then you are bound by the policy to disclose that information.

[super_vixen]

you don\'t have to claim things like that for insurance.

Unless you are modding your car in any big way, ie. bigger engine, that would make it more unsafe or powerful, then you don\'t have to tell them anything. They are usually referring to cars which are used for racing (legal or otherwise).

[///M]

I checked my isurance documents and mods include \"tires than were not factory installed\". wtf? Does that mean I\'ll be paying more for insurance if I have winter tires? And pay less if I stick to the RS-As forever? Doesn\'t make sense to me.

[bluntman]

I guess my car mats count as a mod. :D

[midnightfxgt]

The can/will void your warrenty for:

Power Adders: This is Nitrous/Supercharger/Turbo etc, unless factory installed.
Engines: an engine in a car that never came with it stock (in Canada), so an H22 Civic is a no no
Suspension: Lower suspension can viod warrenty
Body: Any body kits that \"drastically\" modify the exterior

Some companies are MUCH stricter than others. For example: State Farm. If you are in an accident, and they notice a Front Mount Intercooler in a non-turboed car. They take pics, and it goes through reviewal, and it will be void, and you will have the policy cancelled. A cancelled policy will equal higher rates down the road.:sarc

Is it fair? NO
Is it life? YES

~JOHN

[bluntman]

When I applied for new insurance they asked if I had a modified stereo with a value of more than $1500; a little leeway was nice. ;) Of course I don\'t know if they meant before or after taxes, with or without installation. :D

[MazdaTree]

in my old car the insurance company guy came to look and take some pics of the car and he noticed i had an aftermarket deck (pioneer deh 3500) and he took a pic of it and i think the price did go up because i had that

[firstmazda]

Thanks guys,
I said no \'cause yeah, an air filter won\'t be doin much to the car.

Thanks again,
Ray

[midnightfxgt]

whoops, my long a$$ reply, and I didnt respond to you directly :)

I would worry about what ya got. No worries there, not really a mod. Its more of a replacement part. And it is OEM size etc. :)

~JOHN

[billyfo]

I\'ll become blind and deaf when sometime related to insurance about car:D

I would say unless major mod with your drivetrain, it doesn\'t effect your car warrenty AND insurance policy.

[midnightfxgt]

Originally posted by billyfo


I\'ll become blind and deaf when sometime related to insurance about car:D

I would say unless major mod with your drivetrain, it doesn\'t effect your car warrenty AND insurance policy.

Or a bodykit, or even suspension mods. Ask about the new laws past in Ontario regarding this.... you\'ll flip.:p

~JOHN

[bluntman]

Geez, I just hope we don\'t become like Richmond BC where kids are stopped and harassed by the police just because they have these things intalled.

[kyfe]

Hi everyone I hope I can clarify some info for you,

First you insurance will not go up if you have mod\'s,

The reason they ask is because insurance companies assess risk.
In assessing risk one could say a car with a custom stereo (say 2 subs, 1 amp, 1 deck)
A> is more attractive to theives
B> increases the overall payout on a vehicle if the vehicle is stolen

thus is a higher risk than the same car with factory everything....because there is higher potential for a claim your insurer will want to know this info

What may happen. your company could look at increasing your deductible, (what you pay in the event of a claim) std in Ontario is 300 for comprehensive they may increase it to $500 or $1000 depending upon the situation. (MOD\'s fall under comp in most cases)

MOD\'s are anything is is not OEM on the vehicle, ANY AM product from tires to stereos to engine mods.
As for acceptable MOD\'s most people have stereo equipment, skits, wings etc.cosmetic is not much of a big deal(to an extent), if the whole car is riced out ie\' a civic etc there will be concerns,

Engine MOD\'s ie NOS, turbo added, chips etc... will be a major concern and most likely result in you finding another carrier because your insurer will not renew the policy when if comes due. the reason for this is simple increasing the horsepower on a vehicle only serves 1 purpose to make it faster.

Be honest with this info, should anything happen in the future this info will be taken into consideration and lying could result in your claim being denyed, leaving you out hundreds if not thousands of dollars.

I hope you\'ll find this info useful, if I can be of any further help shott me a PM.

Kyfe

[MajesticBlueNTO]

Originally posted by bluntman


Geez, I just hope we don\'t become like Richmond BC where kids are stopped and harassed by the police just because they have these things intalled.

this already happens in York Region and Peel Region.

[TheProfessor]

Didn\'t State Farm recently amend their policy to not allow ANY mods of any kind? I could have sworn that they started to drop all policies where the vehicle had been modified with the usual intake, headers, exhaust, etc.? Either way, I would not tell them anything. I have my doubts that your rates will not be any higher if you actually claim your mods.:sarc

[kyfe]

Originally posted by PSIVIC


Didn\'t State Farm recently amend their policy to not allow ANY mods of any kind? I could have sworn that they started to drop all policies where the vehicle had been modified with the usual intake, headers, exhaust, etc.? Either way, I would not tell them anything. I have my doubts that your rates will not be any higher if you actually claim your mods.:sarc

I am an insurance broker if that puts your mind at ease:D

Every company is different some more tolerant than others, for example my company wouldn\'t insure a vehicle with what you have mentioned because they are performance MOD\'s exhaust is pretty common and we tend to be flexible with that because it can be argued that it is cosmetic, even though most increase the HP of the car.

[bluntman]

Kyfe,

What is the consensus among insurance companies regarding audio upgrades? I don\'t mean hugely expensive show quality systems, just upgrades. I think I mentioned in this thread that when I switched over insurance companies recently, they asked if I had upgraded the stereo system to a value over $1500. It still looks stock, it just sounds better. How much is too much and why $1500?

[majic]

bluntman,

from what i know, the max you can claim for an audio system is 1500 (without previously \'declaring\' it).. i\'ve heard of ppl saying they had 1500 worth of stuff while they had a measily amp and sub bought at walmart.. this is why our insurance rates are so high :(

so i think if you have > 1500 of upgrades then you have to write it down and your insurance rates will be adjusted accordingly.. but below that you can pretty much say you have a 1500 system and if your car gets broken into and your 100 dollar sub goes missing you could claim all of 1500 bux

insurance brokers, if i am incorrect pls let me know and i\'ll delete this.. thx

[kyfe]

Originally posted by bluntman


Kyfe,

What is the consensus among insurance companies regarding audio upgrades? I don\'t mean hugely expensive show quality systems, just upgrades. I think I mentioned in this thread that when I switched over insurance companies recently, they asked if I had upgraded the stereo system to a value over $1500. It still looks stock, it just sounds better. How much is too much and why $1500?

most companies are pretty decent with this..
$1500 would get you an amp/deck and box no problem. I think insurers use the $1500 mark for this very reason anything more is getting into more competition systems or tricked out stuff like carputers, x boxs and dvd screens, all of which are more likely to distract the driver when driving ( just like cells). Your car is more likely to suffer a claim due to B&E than to Total theft, but that all changes once the vehicle as a whole becomes more attractive to theives

bluntman, the most important thing to keep in mind is the relationship with your insurance company, if you have been with them several years and have all of your business there ie home/auto/rev props etc they tend to be more accomidating.
if you\'re a G2 driver 19 and this is your first car and you tell them you have a system they would likely ask more questions.

When speaking with people I try to treat them as if they were me shopping around, in the past year I\'ve had one issue regarding this matter.

In a nutshell the client told me he had not modded the car. I sent him for an inspection, I got the info back the pictures showed an air scoupe, a racing fin, AM grille, lowered, custom paint, skirt package, rims, custom stereo with 3 subs 2 amps and Am deck. Adding an approx total value of 5k to the car

It was a 2000 grand prix and it looked like a civic coupe, it was Fugly but that\'s beside the point.

Anyway, although the guy lied to me, I gave him the option of removing it from the policy and us keeping his other car and his home insured.
I should have Voided his policy and he would have been screwed for the next 5- 10 years every time he called an insurance company, but for me thats not my styl and how I\'d want to be treated.

If you\'re upfront about your intentions chances are your insurance company will work with you at the end of the day there are greater concerns than someone having a deck in their car.

Kyfe

[bluntman]

Great information Kyfe! Thanks. I think I\'ll add a \"sticky\" to this thread.

[Dr Butcher]

Hmm, if you have an aftermarket alarm installed will it lower your rates or does it even make a difference? I am about to add some audio stuff to my car and it will most likely come to around 2 grand after installataion and taxes, should I be running to my broker and seeing what they say? Or should I stay mum on the subject?

[bluntman]

Originally posted by Dr Butcher


Hmm, if you have an aftermarket alarm installed will it lower your rates or does it even make a difference? I am about to add some audio stuff to my car and it will most likely come to around 2 grand after installataion and taxes, should I be running to my broker and seeing what they say? Or should I stay mum on the subject?

Damned if you do and damned if you don\'t. :(

As far as the alarm goes, check with your insurance company. CAA wouldn\'t give me a discount if I had a Boomerang or Lo-Jack type alarm installed. :(

[MazdaTree]

my insurance comp told me id get a discount if it had started kill which is when the car is alarmed you cannot start it
i was supppost to send proof that i had started kill or an aftermarket alarm. and when i do ill get $12/year
better then nothing even tho i got my alarm in aug i lost the recipt so i gotta get a new one next time im in woodbridge

[TheProfessor]

I got a discount when I bought the MZ6 because it comes standard with starter kill. I also got a discount on insurance when I had starter kill put onto my civic. Proof was required on the civic, they didn\'t ask for the MZ6, likely because they have it in their database that it is standard.

[Xenon]

I don\'t want to sound rude or anything... but this is stickied why?

[majic]

Originally posted by bluntman


Great information Kyfe! Thanks. I think I\'ll add a \"sticky\" to this thread.

b/c ^^^

with regards to



most companies are pretty decent with this..
$1500 would get you an amp/deck and box no problem. I think insurers use the $1500 mark for this very reason anything more is getting into more competition systems or tricked out stuff like carputers, x boxs and dvd screens, all of which are more likely to distract the driver when driving ( just like cells). Your car is more likely to suffer a claim due to B&E than to Total theft, but that all changes once the vehicle as a whole becomes more attractive to theives

bluntman, the most important thing to keep in mind is the relationship with your insurance company, if you have been with them several years and have all of your business there ie home/auto/rev props etc they tend to be more accomidating.
if you\'re a G2 driver 19 and this is your first car and you tell them you have a system they would likely ask more questions.

When speaking with people I try to treat them as if they were me shopping around, in the past year I\'ve had one issue regarding this matter.

In a nutshell the client told me he had not modded the car. I sent him for an inspection, I got the info back the pictures showed an air scoupe, a racing fin, AM grille, lowered, custom paint, skirt package, rims, custom stereo with 3 subs 2 amps and Am deck. Adding an approx total value of 5k to the car

It was a 2000 grand prix and it looked like a civic coupe, it was Fugly but that\'s beside the point.

Anyway, although the guy lied to me, I gave him the option of removing it from the policy and us keeping his other car and his home insured.
I should have Voided his policy and he would have been screwed for the next 5- 10 years every time he called an insurance company, but for me thats not my styl and how I\'d want to be treated.

If you\'re upfront about your intentions chances are your insurance company will work with you at the end of the day there are greater concerns than someone having a deck in their car.

Kyfe

[bluntman]

I think Kyfe should have his own area in the forum where members can ask him general insurance questions. What do you think? More importantly, Kyfe, what do you think?

[kyfe]

LOL, Thanks for the kind words Bluntman,

I don\'t think there will be that many insurance questions to start my own area.
However if that changes I would welcome the idea.

I know insurance is a touchy subject for some and there may be things people would like answered but not on a public board. If this is the case shoot me a PM.

As for the question RE. alarms, it really depends
my company only offers a discount of 15% for anti theft that is wired to the ignition, such as an engine immobilizer (sp),

If you look at lockdown\'s thread in the group buys you will notice he said some companies offer up to a 35% discount so as you can see the discount will vary depending on who you insure through

The best thing to do is call your insurer and find out what they offer before getting it installed, usually things like the club, ONstar, boomerang etc do not produce a discount but every company is different.

Kyfe

[zRqTz]

Originally posted by kyfe
I know insurance is a touchy subject for some and there may be things people would like answered but not on a public board. If this is the case shoot me a PM.


Can\'t seem to find out how to send a PM.
Anyway, I have some questions I\'d rather ask u directly.
Can I send u an email?

[majic]

Originally posted by zRqTz



Originally posted by kyfe
I know insurance is a touchy subject for some and there may be things people would like answered but not on a public board. If this is the case shoot me a PM.


Can\'t seem to find out how to send a PM.
Anyway, I have some questions I\'d rather ask u directly.
Can I send u an email?

once logged in go here (http://torontomazda3.com/forum/myhome.php?action=newmsg) and make sure to spell the recipient\'s name correctly.. alternatively you can click on http://torontomazda3.com/forum/images/themes/openbb/msg.gif on the lower right of each post and send a msg that way ;)

[zRqTz]

Silly me! :D

[idreamofmazda]

This subject came up in the news:

http://autonet.ca/Insurance/story.cfm?story=/Insurance/2005/01/17/901177.html

[kyfe]

Originally posted by idreamofmazda


This subject came up in the news:

http://autonet.ca/Insurance/story.cfm?story=/Insurance/2005/01/17/901177.html

That\'s a great article. The article makes it sound like people who race their car and mod it have no place to go currently and that\'s not true. I know of one company we refer client in this situation and they\'ve been around for years.

for those interested, although I doubt many of you have to worry:D here\'s that brokers contact info
Lant insurance brokers
416-447-9191

they specialize in Antique, Classic and special interest autos....

Kyfe

[ng3]

I had to deal with my insurance company only once, and I won\'t be going back to them. At the time I lived in an apartment building where cars were broken into on a regular basis. The first time they broke into mine they onlt took an amp, so I just replaced it. The second time they made off with the whole package: deck, amp and 2 10s.

When I called the insurance company they told me that since my deductible was 500 they would only pay about 250-300 bux and my rates would go up by about $30/month as a result. So I left it at that and gave up.

As a side note, I ended up finding both subs on an emergency exit out of the underground garage.

[kyfe]

Originally posted by ng3


I had to deal with my insurance company only once, and I won\'t be going back to them. At the time I lived in an apartment building where cars were broken into on a regular basis. The first time they broke into mine they onlt took an amp, so I just replaced it. The second time they made off with the whole package: deck, amp and 2 10s.

When I called the insurance company they told me that since my deductible was 500 they would only pay about 250-300 bux and my rates would go up by about $30/month as a result. So I left it at that and gave up.

As a side note, I ended up finding both subs on an emergency exit out of the underground garage.

that does suck and sorry to hear about it. for your own info you will always be responsible to cover part of the loss usually $300-500. this situation would be a Comprehensive claim which is not ratable but would affect your claims free discount if you were getting one.

don\'t be afraid to claim if you need to but if you can cover the loss yourself sometimes that\'s the best way to go, save your insurance for the big stuff like accidents/thefts of vehicle.

I\'ve claimed my stereo before and I don\'t regret but it was also a $1500 loss which i couldn\'t afford at the time

[Electra-fire]

don\'t be afraid to claim if you need to but if you can cover the loss yourself sometimes that\'s the best way to go, save your insurance for the big stuff like accidents/thefts of vehicle.

Ya sometimes this is the BEST solution...
I have learned from my other cars that unless its a car accident and its NOT your fault, really no point to call the ins. company.I just got rid of a mistake I made 6yrs ago with Royal Sun Alliance.

I had my 3 vandalized when I first got it. I just sucked up the loss and took it cause it wasn\'t worth the hassle and the ins. increase...

And I know a guy who had his $3000 stereo, deck the whole works ripped from his car and his ins. company only gave him $500 back... They refused to cover it, PLUS his ins. went up. Now that is getting bent over the table!!!

My 2 cents ;)

[kyfe]

Originally posted by Electra-fire


And I know a guy who had his $3000 stereo, deck the whole works ripped from his car and his ins. company only gave him $500 back... They refused to cover it, PLUS his ins. went up. Now that is getting bent over the table!!!

My 2 cents ;)

Most likely he didn\'t let his company know that was in the vehicle, every company will ask you if you have any add on\'s or customizations, they will also ask you if you have any after market stereo equipment. If you answer NO, then they are under the assumption that they are insuring a stock vehicle with no add on\'s of any sort.

Since the risk has materially changed, he would be obligated to let his insurer know that this was in the car. (meaning the vehicle is no longer stock)

some companies may also have limits for this type of thing,

Kyfe

[Electra-fire]

Ya no doubt...
Every company has their limits.

[kyfe]

Originally posted by Electra-fire


Ya no doubt...
Every company has their limits.


that\'s true, my company\'s is $1500 which is think is pretty reasonable it\'s enough for an Amp, 2 12\'s & a deck.