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Your New Paint & Modifications Could Cause Termination of Insurance |
If you own a car with a custom paint job or other modifications, be sure your insurance offers coverage.
"NO matter what improvements you’ve made to your car — fancy wheels, neon glow, or a more powerful engine — one component is almost certain to lag in performance: your insurance policy...there are ways to get coverage for those add-ons
from specialty insurers and even from mainstream ones...Few drivers realize that aftermarket parts are
generally not insured, so if you have an accident in your modified car, your
insurer is not likely to reimburse you for the damaged add-ons. Even worse, in
some cases insurers may deny the whole claim or cancel the policy."
There is meathods to get coverage for your upgrades...
“It’s not that insurers are against modified cars, they are just not set up to handle them. Generally, the industry tends to shy away from covering modified cars because it gauges risk based on statistics. The bigger the pool of examples, the better the risk assessment. Sometimes drivers will modify a car without telling the insurance company. Then after an accident, the company finds that the $20,000 car it insured is now a $40,000 car, and the owner expects coverage on losses that weren’t priced in the policy.”
So, decide to insure your prize iron and all it’s glorious after-market additions. Here are your options given in the language that the insurance people speak.
Agreed value: Insure for more than its book value.
Stated value: Insure for more than book value, less depreciation.
Some insurers offer stated & agreed policies for possible better coverage for modified cars, but of course will cost more…
[SOURCE: nytimes.com READ THE FULL ARTICLE]
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I Want That: Backup Safety System
Introducing a "state-of-the-art" parking aide that uses ultrasonic technology to warn drivers when objects are detected as a vehicle backs... More >
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