<<< Remember >>> When modifying daily driver vehicles you must upgrade the insurance. These are some of the questions you must ask yourself.
- Do you have the proper insurance on your vehicle?
- Do you have documentation such as an appraisal and have an agreed value coverage with your insurance company?
Turning inexpensive automobiles into high performance daily drivers rolling fashion statements or multimedia showcases is an expensive hobby. Brakes, wheels, tires, and certain safety related modifications generally will not raise alarms; many insurers are tolerant of some traditional alterations if the owner discloses this information while getting a quote.
Suppose you buy a used Honda Civic vehicle for $5,500 and get it insured for $X amount. You decide to spend $2,000 on engine modifications followed by another $3,500 in chassis and suspension work, $1,600 for ground effects plus another $2,000 in audio and electronic upgrades. The car drives, sounds and looks great.
Then the vehicle is involved in an accident with another vehicle. Both vehicles are a total loss. The bad news is the adjuster sent out to do a total loss evaluation on the vehicle is not impressed to find $9,100 worth of extras on the vehicle which your insurer has not been informed of. They call it misrepresentation of the policy. The company denies the modifications due to the fact that you misrepresented the vehicle at the time the insurance policy was written. You will receive the book price on a Honda civic. As for the parts, you will be lucky to recover a fraction of the cost.
While it is tempting not to tell the insurer about modifications, remember it is your vehicle and your money on the line.
Professional Adjustment Service recommends that you:
- ► Save your receipts.
- ► Get an appraisal from a licensed appraiser as to the value of the vehicle.
- ► Present the appraisal to your insurance company; get an agreed value that BOTH parties agree to.