Does anyone have any insights on the impact that specific mods have on insurance rates? I can imagine impacts driven by (a) the increased value of a modified vehicle and/or (b) the increased -- or decreased -- risks certain modifications yield.

But I'm only guessing. Some NAMmer out there must actually know.

[No need to point out that more hp leads to more mph leads to more tickets leads to more points leads to higher rates. I'm clear on that dynamic already. Thankyouverymuch.]

 

I know someone on here is a insurance agent. So I'll wait and see if he chimes in.:smile:

 

Who's calling his/her insurance agent to report mods?

I've been told that this is an issue overseas, but in the US, I'm not aware of any reason to call your insurance agent and say, "I just installed a 19% pulley, CAI, and 380cc injectors; what's my new rate?"

 

Good point, of course. However, I'm thinking of particular cases when shopping for rates or otherwise initiating a new policy -- not the case of continuity. Fairly standard follow-up question is "Does the vehicle have any options or other modifications?"

Still curious if others have had experience that would allow us to quantify an impact of specific mods. [I'm pretty sure, for example, that my stubby antenna makes my car less prone to roll (due to lowered center of gravity), but I'm not sure I'll get any credit on my premiums! ]

 

Generically speaking, modifications that increase the value of your car should be listed as part of your coverage. In the event of a loss, and you want to be reimbursed for the modification(s) it needs to be documented. Will this increase your premium? Probably - but also probably not by much. For example: the change in my own premium between the standard MCS and the MCS JCW, with new wheels/tires, was $18 every 6 months. The value of the change was about $8,000. What you are doing is exchanging pennies for much bigger dollars.

Having said that, each insurance company has different "rating" rules so it's best to check with your current company or agent for specific advice.

In general practice, modifications such as adding a JCW kit, "expensive" wheels/tires, and radio stereo equipment are the type of mods that most often get added to the value of your vehicle. If they are not added, you may just find that in the event of a loss you will not be reimbursed. Reporting a pulley, new injectors, etc. is typically not done.

There is no requirement to report any modifications to your vehicle. But remember that if you ever have a loss (like a "total")- you probably won't get your money out of the mods, or you will find yourself arguing with an adjuster on what you think you should get.

Hope this helps!

Grumpy

 

With which insurance company?

 

Most insurers require us to report significant mods that increase performance. And as indicated above, if you fail to report customization mods, they may not be covered at all because the insurer isn't being paid a premium for undeclared mods. Insurers charge premiums based upon the info we provide, that's all they can do. If information is willfully withheld, it may cause problems if there's a claim.

If unsure about coverage or declaring mods, call your Agent and discuss the situation. If you're still unclear, call your insurer. All insurers have toll-free phone access and most have web pages through which you may submit questions via Email.

But most of all, don't remain in the dark about such important issues. Ignorance of your coverage could cost you a lot of money. And, major performance mods could void your coverage completely in some cases.

Of course, it's best to do this BEFORE you modify the car!

 

Farmers Insurance...

 

Yup Grumpy I was thinking of you.