Mods & Insurance
- Thread starter ciaz
- Start date
Register to hide this ad
I think it varies from carrier to carrier. With mine I basically just took pics of my stereo and front suspension and told them how much it all cost. They then increased the payout on my 4runner and adjusted my premium accordingly.
I added about 7k in aftermarket options and it increased my premium about $100/year.
I have had it happen to me before and it sucks when you either get robbed or have an accident and your aftermarket components are not covered!
I would call your agent and they should be able to figure it out for ya. Worth the extra $10/month for me!!!!!!!
I added about 7k in aftermarket options and it increased my premium about $100/year.
I have had it happen to me before and it sucks when you either get robbed or have an accident and your aftermarket components are not covered!
I would call your agent and they should be able to figure it out for ya. Worth the extra $10/month for me!!!!!!!
3x4runnerOwner
New member
There probably is no definitive answer to this, but what is considered a "modified vehicle"?
Hawkdog21
New member
Im just spit balling here but I would say something like anything major that is mechanical or electrical that changes a function of the vehicle. (so floormats or wheels/tires wouldn't matter but a bumper or suspension would)
again I don't work in insurance or anything, just a simple guess.
I have amica and have not had a problem, they can adjust the premium based on what I have done. And two 4runners ago I got in a wreck, and instead of replacing factory parts they just gave me money and let me use it for aftermarket stuff...
Ciaz, I assume from the variety of answers you have received thus far, you can tell there is a wide span of issues that may apply directly to your question. I have worked in the insurance claims industry for some 35 years now, let me try to explain.
It all depends on the contact any particular insurance company offers, the state insurance laws and regulations that may apply in the state in which you live and the type of damage or loss you incur.
Generally, most insurance contracts will pay for the repair or replacement of your vehicle as a whole, or whatever parts are damaged due to a covered loss, up to the actual cash value of that vehicle, UNLESS THOSE PARTS OR MODIFICATIONS ARE SPECIFICALLY OR GENERALLY EXCLUDED by either contract language or state law. In other words, usually any mods are covered without any further duties or costs on your part, unless they are excluded or required to be listed on the policy in order to be covered.
For example, a contract may say that we will not pay for any parts on a vehicle that was damaged in a covered loss that have been declared illegal by state law. (This might apply to either OEM or Aftermarket). The purpose and the application of this exclusion might apply to aftermarket muffler systems that were considered too loud by state law, or window tinting that was two dark. Now, when those types of exclusions are found in a policy, the exclusion itself is usually required by state law.
Another contract condition might say that we will not pay for any aftermarket parts unless listed on the policy. Obviously the purpose of this condition is so the insurance company charges the appropriate premium associated to the risk of insuring your modified vehicle.
Another issue is the Actual Cash Value wording I mentioned above. What does that really mean? Well, there are many applicable definitions of what it could mean. One favored definition says ACV is the amount of money that the AVERAGE normal buyer is willing to spend at an arm’s length transaction to purchase YOUR vehicle. The goal is to determine, (and the means of that determination is usually governed by state law), what was your car worth on the open market one( 1) second prior to the loss.
This is not an easy task, especially if your vehicle has been heavily modified. Keep in mind, not all modifications “increase the actual cash value of your vehicle”. Some may in fact distract from the value. Ask yourself, would the AVERAGE buyer of vehicle x, pay more or less for the mods I have placed on my vehicle? Again, this issue would probably only apply to a total loss situation, at which point you may be able to return your vehicle to a more OEM state prior to making a claim, keeping some of the mods for future use.
Just to be complete, a total loss is generally determined by the approximate ACV, less the estimated net salvage recovery. (Salvage recovery is the amount of money the insurance company can sell the damaged car at a junk auction or by other means). For example, let’s say a vehicle is worth 4k. It was hit hard in the rear end with 2500.00 worth of damage. The estimated net salvage value is 1k. Thus, the insurance company can pay up to 3k to fix the car before it would be deemed a total loss. This vehicle would probably be repaired.
Bottom line, talk to your agent, READ your insurance contract. Shop around and be safe.
Last edited:
doug.zheng
New member
I guess your car insurance company agent will be the right person to answer this. You are supposed to report mods, and keep supportive evidence like bills and receipts handy at all times though.
03_4x4Runner
Senior Member
I was watching Judge Judy one day and there was a case that someone was suing another person that wrecked his car. He had a 80s camero or something and spent a ton of money on hi performance parts. The insurance company only paid off book value which was very low on that old of a car. The guy was trying to explain to Judge Judy that his car was worth so much more and the guy that wrecked it should pay the difference. Judge Judy just laughed at the guy and told him he was a fool for spending all that money on a old car and he did not get any more money. Courts are not really into modifications and think it is foolish. So the bottom line is do mods if you want to but do not expect anything in return. 20 years ago I had a mustang Gt that I had modified and a drunk hit me. I came up with all my reciepts from the parts I had bought and got more money from the drunks insurance company but nothing for labor. If the claim was against my insurance company (Allstate) I doubt I would have got anything. They just go by blue book value.
This is why you should talk to your insurance company and let them know what you have done. It will be documented and when something happens (heaven forbid), you will be reimbursed the cost that the vehicle is really worth, not the book value.
