[crashsti]

i just read in a magazine that some very large insurance companies are denying and revoking coverage to people who modify thier sport compacts. the example at hand was a man who owned a Pontiac Sunfire that he had equipped with an aftermarket suspension that lowered the car. his insurance Co. got wind of his mods and sent him a notice declaring that his mods had violated a portion of his insurance policy and that he would no longer be covered. to regain his coverage he had to have his car restored to stock condition under the supervision of an inspector from the ins. co.. apparently this is a growing trend among some of the larger insurance companies. the insurance companies are claiming that modified sport compacts are becoming a problem because of street racing and the accidents they are involved in. i believe the insurance co. in question was State Farm, but i can't verify it as i don't have the article in front of me. SEMA has been watching this trend closely and reports that the frequency of this type of action is'nt yet a problem but it easily could become one. SEMA's advice to consumers, read your insurance policy carefully.

[Digitalfiend]

I think it has been this way for a while. We go through State Farm here in Ontario and there is a clause in their contract about not being allowed to modify your car. Personally, I find it ridiculous as both our local Acura and Subaru dealerships said they don't care about modifications, as long as it doesn't cause a failure. The insurance companies should just say "we allow modifications but will not PAY for replacing those modifications if they are damaged in an accident."

I also look at it as what they don't know won't hurt them. Unless you total your car, most adjustors wouldn't know what to look for.

I think it would be silly if a set of springs or an exhaust would void your insurance. :roll:

[MKIVSupra]

Although this does not surprise me it also sounds sensible to me. There are a lot of reasons I could think of related to modding your vehicle that could cause an insurance company to not cover you. Me personally as a sport compact and sport car in general owner, trying to get a good deal on auto insurance, think it is a good idea to a point. I don't care how good a driver thinks they are there are a number of reasons that could lead to an accident because of performance mods done and some accidents being more serious than others because of the mods not necessarily the driver.

The problem I see is where do the insurance companies draw the line. Would minor appearance mods or an exhaust cause you to get dropped. If I were an insurance company I would not want anything done to the suspension or the engine, basically anything that could put more wear on other components or even something that could cause the driver to get more confident and push the limits of the car. Then what if the driver hits something in the road such as water, sand, animal, or worse a pedestrian. What if the component, say spring, was defective or was installed by the owner's buddy to save a few bucks who installed it wrong?

[JRSCCivic98]

This is a prime example of the MAN trying to **** you yet again. The problem here isn't the fact that a performance mod will cause an insurance company to have to cover it in case of an accident (which they hate paying for anyway), but in fact it's a trend problem. By that I mean... Sport Compacts (even more modded ones at that) tend to be in a lot of accidents. Why?... well, it's because the majority of the people that drive these cars are under the age of 25 and think they are in Fast and the Furious. Basically guys the insurance companies has gotten tired of paying for damages that come from street racing and such. Those fuggin insurance companies need to understand that we PAY their company to cover us. Did you ever wonder why your ****-ass premium goes up when you get in a wreck. It's because they want their money back. Welcome to the world of HMO and PPO auto insurance. It's amazing to me that we the people are letting insurance companies do this sort of ****. Only in America...

[renichms]

I just take receipts for mods to my insurance company and ask for extra coverage (which I have to pay for, obviously). No mention of racing or anything and have had no problems. Used Nationwide in SC and now in AL.

RN

[WE_R_ND]

It's just a way for them to get out of paying. They probably see those people as higher risk than the average joe. They're probably right too overall.

[dozer]

Damn the Man!!!

[bitabur]

Insurance really is extortion.

How many products are out there that you're required by law to buy....

[JRSCCivic98]

Originally Posted by bitabur

Insurance really is extortion.

How many products are out there that you're required by law to buy....

EXACTLY!!!! Why is it that we stupid Americans just sit back and don't do anything about it?!?! I can honestly say that this stupid ass country has got some stupid ass laws and regulations. It's become an American pasttime to see how we're going to get ****ed some more every 4 years.

[Snax]

Some of you seem to be under the impression that all insurance companies are resorting to these tactics. Shop around. Ask questions. READ THE POLICY!

My company (Allstate) makes no exclusions for modifications, and will cover damages to the car even while racing. (But consider yourself screwed on liability and injury coverage.) They can only deny coverage if you lie about what equipment your car has or other information when you take out the policy.

[MKIVSupra]

stupid Americans

Speak for yourself.

...this stupid ass country...

You really think that??? I know some laws suck but name a better country to live in. Millions of people would love to live here and many try evey year to get in this country to live.

[Digitalfiend]

I know some laws suck but name a better country to live in.

Canada? hehe j/k

[Saturn]

Canada rules. Insurance still sucks

[STiObserver]

Anyone else think it's funny that someone modded a Sunfire?!?!

[donmei]

Yeah, modded Sunfire. I heard he had 180 horses under that hood!!!!!

Seriously, can you blame them??
1) Idiot kids who don't know how to drive, that drive too fast.
2) The car is a $6000 car with $4000 worth of mods on it. Its realistically worth $5000. (mods hurt value more often than not) It gets totaled. Now the kid is squawking that they should pay $11K for the car.

The insurance industry is corrupt, but, they do exist in a competitive market. If they raise rates on a car there is a statistical reason why.

My STI's insurance is reasonable. ($1200/yr) I don't think it will stay that way for long at the rate that stupid people seem to be wrapping them around trees, dunking them in ponds, etc. I'll be the first to admit that those people probably wouldn't have goten themselves into trouble in a slower car.

<stepping onto my soapbox>
In the good old U.S.A. we have more rights than the citizens of just about every other country in the world. We like to ***** about "my rights", but rarely do people discuss the responsibilities that come with EVERY right.

Like the right to drive a fast car, its your responsibility to not drive recklessly.
Like the right to bare arms, its your responsibility to properly secure your guns when you aren't using them.

If I had an STI when I was 18 yrs old, I'd be dead now. I was actually a pretty skillful driver by then. About 2 yrs of autocrossing, 2 yrs of motorcycle roadracing, and about 5 yrs of flat tracking.

But I still had 18 yr old judgement. i.e. NONE.

In the flying world, there is a saying. My exceptional judgement precludes me from having to demonstrate my superior skills.

If you want to get off by driving really fast, go to one of the many many track days happening everywhere around the country.

In the northeast SCDA provides lots of opportunities. Shoot, for $225 for the entire day, you even get a ride along instuctor. (www.scda1.com )
<stepping down>

Don Mei