Question for modders
#1
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Question for modders
Forgive my ignorance here, as I have not significantly customized a car since the 80's, and the car was already 8+ years old with 100k+ miles on it when I did.
My question is regarding insurance: if you invest significantly in mods (let's say for sake of example you buy a $30k car and put another $7k into it), and a few days after you've got everything perfect, someone T-bones you, totaling it.
Aren't you kind of screwed when it comes to the total insurance amount you'll receive? I don't think any insurance company is going to let you pay premiums on the $30k amount but receive a claim for $37k, so it's basically throwing close to 20% of the value of the car out the window. Not to mention taking a bath on resale even if it's never wrecked.
Please enlighten me.
My question is regarding insurance: if you invest significantly in mods (let's say for sake of example you buy a $30k car and put another $7k into it), and a few days after you've got everything perfect, someone T-bones you, totaling it.
Aren't you kind of screwed when it comes to the total insurance amount you'll receive? I don't think any insurance company is going to let you pay premiums on the $30k amount but receive a claim for $37k, so it's basically throwing close to 20% of the value of the car out the window. Not to mention taking a bath on resale even if it's never wrecked.
Please enlighten me.
#3
Driver School Candidate
Like Gville350 said. I believe it's called something to the degree of, Special equipment endorsement, Custom parts and equipment coverage, or something like that on your policy. You add this on, or get a separate policy for the special equipment. You list your special equipment, amount they are worth, pay the policy, and that's that.
But, most people who modify their car, do so knowing that it's basically throwing money away.
But, most people who modify their car, do so knowing that it's basically throwing money away.
Last edited by LongSword; 05-05-14 at 12:45 PM.
#5
Pole Position
Thread Starter
Has anyone here actually done this? The reason I ask is that as I understand it most insurance policies allow the company to calculate value using their own algorithm, and they use that in order to do things like straighten wrecked parts to look like original rather than actually replace with original. In other words just because you spent $7k on custom parts doesn't mean they owe you complete replacement of those same parts, they have a right to go find a used / refurb (or in the worst case discount insurance scenario, aftermarket equivalent).
So it you spent $7k on mods, how much of that value is recoverable after you've been rolling on it for 1.5 years and you get t-boned?
So it you spent $7k on mods, how much of that value is recoverable after you've been rolling on it for 1.5 years and you get t-boned?
#6
Instructor
i was told by my insurance company's estimator that any parts that is bolted to your car is covered, as long as you have picture that shows it is bolted to your car...
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#8
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This sounds more like the insurance companies I know...
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