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09-10-2016, 03:17 AM | #1 |
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Another insurance question
There are probably some insurance grues out there who can answer this question. During a discussion last night a question came up regarding coverage. If you insure a generally stock car and then undergo a significant horsepower increase (via engine change or accessories) and didn't tell the insurance company about the change are you still covered in case of an accident or can the insurance company refuse to pay? Assuming you are at fault.
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09-10-2016, 03:53 AM | #2 |
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Re: Another insurance question
Why would you presume that anyone on this forum can speak to what any given insurance company would or wouldn't cover?
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09-10-2016, 04:13 AM | #3 |
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Re: Another insurance question
My guess is it depends on the insurance company, but even with that said I will add that since premiums go up with horsepower, no I don't think you would be covered if the car originally had a 4 cylinder and you put in a boss 429.
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09-10-2016, 04:30 AM | #4 |
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Re: Another insurance question
Assuming that you are talking about antique insurance, this could be considered fraud and any claim could be denied. Of course this is depending on the insurance company and is a question that can be answered by them and not any guru or guessers.
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09-10-2016, 06:15 AM | #5 |
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Re: Another insurance question
I just changed insurance company's recently. One is a stock 49 Ford and the other a 38 Chevy street rod. I had to submit pictures of the engines, interiors, front and right side, and rear and left of both cars. So if any major changes are made they will know.
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09-10-2016, 10:23 AM | #6 |
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Re: Another insurance question
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09-10-2016, 10:29 AM | #7 |
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Re: Another insurance question
Why would you NOT tell your insurance provider of changes? If you add value to your car it probably would increase the premium to get the additional value covered. FWIW
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09-10-2016, 11:21 AM | #8 |
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Re: Another insurance question
If you infest more money into it, why not get your money back in the event if a catastrophe?..... Mark
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09-10-2016, 12:30 PM | #9 | |
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Re: Another insurance question
Quote:
Now, as for the original question, yes, one should let the insurance company know if they make a performance upgrade to their vehicle relative to the power of the engine if is would significantly increase speed. As is customary in automotive insurance coverage the vehicle with the V-8 powerplant is more of a liability than a vehicle powered by a 4-cylinder engine. Having said that, there may be a gray area. For example, if you have a stock flathead V-8 engine in your pre-48 V-8 vehicle (let's say, a 1940 Ford pickup) and you upgrade the top end w/alum. heads, dual carb induction, headers, cam change and an ignition upgrade, my opinion is that the HP increase is going to be nominal as opposed to swapping in an OHV V-8 like an OHV 351 Windsor V-8. In that case, I wouldn't say anything, unless one feels that these upgrades increased the value of the vehicle significantly enough to warrant an increase in the replacement value on the policy. As stated earlier in this thread, most (not all) collector car policies, whether antique, restored or modified generally require numerous photographs of the vehicle from all angles outside, the interior and the engine compartment along with details about the modifications and materials used (i.e., leather interior, candy paint, magnesium wheels, etc.) so the underwriters can review and approve/deny coverage and how much the premium is if they approve. I went through this w/AAA in So. Cal. with one of my cars which is modified and has a high replacement value in contrast with some antique/restored vehicles. They took their own pictures and physically inspected it while I had to provide a detailed list to justify the replacement value and it was approved for coverage. I also have a stock "beater" w/OHV V-8 power & stock driveline currently under a regular auto policy which I'm trying to get covered through the same collector car program my other car's insured with because up to now AAA So. Cal. would only insure "show room finish" cars & not weathered, "patina" vehicles under their collector car policy. The point is this: If the change to the vehicle is significant (i.e., changed flathead to OHV engine power, changed wheels & added WWW tires, reupholstered in leather, etc.) and changes your vehicles value, then update your vehicle description with them. But, if the change isn't significant in terms of liability issues (i.e., went from single to dual carbs, installed dual exhaust, changed radiator, etc.) then an update may not be necessary. However as for liability issues, anything that could give them an angle to deny a claim (such as changing over from a flathead engine to and OHV engine w/out upgrading the driveline, brakes & rolling stock to accommodate the HP increase) should be brought to the insurer's attention regarding ones collector car insurance policy. That's been my experience and observations regarding this subject. Lastly, just a point regarding collector car policy's and angles to deny claims: Closely examine the fine print on one's policy relevant to when, where, how long or how far the vehicle can be driven. Some policies aren't very "permissive". In other words, there can be limitations where you can drive you vehicle to. For example, your policy may only allow the insured vehicle to be driven only to certain venues, such as a swap meet, organized national event, parades or other organized automotive related events. If your just out for a "Sunday drive" and get in an accident, they may deny the claim. That's the reason after long research into collector car policy's from Grundy , J.C. Taylor & others I settled with AAA So. Cal.'s collector car policy because it IS permissive. If I so choose, it allows me to take my "collector car" out and drive my family out to the beach to have dinner or any other type of excursion that isn't an official organized automotive related event. Maybe some of the other provider's of this type of auto insurance have changed their policy rules, but don't take it for granted. Ask them and even then, check the fine print yourself. Good luck! |
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09-10-2016, 02:46 PM | #10 |
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Re: Another insurance question
Well stated.
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09-10-2016, 02:56 PM | #11 |
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Re: Another insurance question
Very good, 48er
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09-10-2016, 06:25 PM | #12 |
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Re: Another insurance question
When I bought my car (36tudor) from MI, I had State Farm add a policy for it before it left the previous owner's location. During delivery, the hood blew off, of course damaging it. State Farm paid the claim without any problem.
I had it insured for $11000. Since then I have been slowly restoring it. It will be on the road soon. I recently asked State Farm to increase the value to $20000. They refused, said I had to get an appraisal. That is reasonable, but in the meantime, if the car burned up, I'd be out several thousand dollars. My policy does not restrict the number of miles I drive. Mixed bag I guess. |
09-10-2016, 07:23 PM | #13 |
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Re: Another insurance question
I think if I had an insurance policy question I would call my insurance company and ask them and not post it here for a bunch of guesses.
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09-10-2016, 08:14 PM | #14 |
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Re: Another insurance question
I'd rather eat a booger than to read this thread....
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09-12-2016, 01:51 AM | #15 |
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Re: Another insurance question
Bon apetit! Do you enjoy your mucous dry or moist monsieur? (I do hope you washed your hands first as the nose is an area were germs can be easily spread) Not relevant to the subject matter, but colorful & somewhat comical in a juvenile way. Nevertheless, now that we are privy to your unique culinary appetites, do you have anything positive or relevant to add to the conversation? If so, please share your knowledge or experiences with insuring your classic or restored early/late Ford V-8; I'm sure everyone would love to hear your thoughts!
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09-12-2016, 06:10 AM | #16 |
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Re: Another insurance question
First, this was an hypothetical question resulting from a discussion not an actual circumstance. Second, as for your reply, it may not be as simple as you suggest. Let's assume you make some substantial changes (or planning to do so), in the mechanics of your car (such an upgraded engine) or the general use of the vehicle. You call your insurance company and speak to a secretary-clerk-salesman or agent and receive an answer you feel comfortable with regarding the car's insurance coverage. Then let's assume at some later date a major event occurs and the insurance company is faced with a major payout. Ask yourself who is going to carry the day? What the secretary-clerk-salesman or agent may have or may not have told you or the insurance company's interpretation of their insurance policy? Unless, you have something iron-clad in writing... well, I think you get the picture.
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09-12-2016, 11:16 AM | #17 | |
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Re: Another insurance question
Quote:
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09-12-2016, 12:20 PM | #18 |
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Re: Another insurance question
O.K. here is the short version.
Specialty insurance companies will inspect and insure your car for an "agreed value". You should advise your agent of any changes if you hope to receive adequate compensation in the event of a claim. And finally I am an agent and have been for 40 years. I hope this helps.
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09-12-2016, 02:42 PM | #19 |
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Re: Another insurance question
Specialty car insurance is more based on agreed value as 41 LjH mentioned. Liability is generally a given but is usually more a fixed amount just like all other motor vehicles. If the policy is agreed value then that's all there would be. If you do work that increases the value, you have to change the policy for full coverage. You also have to follow the rules of the insurer as stated in the policy.
If you follow the rules and have an accident then it should be covered. If not, then litigation is the only recourse. If you increase your agreed value the policy will likely have a higher premium per period of coverage. It needs to be in writing to have a binding legal agreement. I wouldn't trust just calling them unless you know your rep personally and can trust them to expedite the changes. Last edited by rotorwrench; 09-12-2016 at 02:47 PM. |
09-12-2016, 04:02 PM | #20 | |
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Re: Another insurance question
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