Car Modification

Before we get to the gnarly truth, let’s first open with pleasant lie. You know that car modification that you finally found the funds, guts, and time to add to your vehicle? Well it will definitely not increase your auto insurance premium. Don’t even bother calling it in to your insurance agent in Dallas or Montreal or New Orleans. Just get in that car and hit the roads. Let’s stop here for a moment and face down an unpleasant truth.

The Unpleasant Truth about Modified Cars 

We love modified cars. There is something about the knowledge that our car is different than every other run-of-the-mill vehicle on the road that appeals to us. Unfortunately indulging in that desire is not without its consequences. Insurance agencies base their insurance premiums on the monetary worth of your car and the risk it will be to insure.

Car modifications often add value to your vehicle and make it more appealing to thieves, for that reason car modifications can and often do increase the auto insurance of the modified car.

Many car enthusiasts who discover this fact may be tempted to prevent this increase in their premium by failing to report the modification or outright lying about whether or not their car has been modified. If you find yourself tempted to omit or lie about a modification, READ THE NEXT SECTION FIRST.

The Unpleasant Truth about Failing to Report Modifications

For an individual who just spent thousands of dollars tricking out there car, an increased monthly premium can be an unneeded expense. You should be aware that the failure to inform your insurance company about the modification can be disastrous. Why? Your insurance is a contract. Your insurance company agrees to help you pay for damages, and injuries when your vehicle is involved in an accident. In return you agree to pay your monthly premium on time and provide honest information to the company.

By not informing your insurance agent about a modification that might change your car’s value, performance, or aesthetic appeal to thieves, you have broken the contract. Even if the breach of contract is the result of ignorance, you are still committing insurance fraud. Insurance fraud will lead you down one of two paths when you finally need to file an insurance claim:

1. The company may decide to pay only for the value reported instead of the current value.
2. The company may deny your claim. If you are particularly unlucky they may sue you for committing insurance fraud.

The point of insurance is to protect yourself financially when you are involved in a car accident. As a driver, you spend thousands of dollars a year on insurance. The decision to misrepresent your vehicle will mean that you will have spent thousands of dollars on an insurance plan that is invalid. The cost of not informing your company about a modification that will increase your insurance is far higher than an increase in your premium.

Ending Notes: Not all modifications need to be reported, but it is far safer to run the modification by your insurance agent. You should report all modifications that alter your car’s value, performance, aesthetic appeal to thieves, or changes the engine size. Your insurance agent will inform you how your insurance will be changed based on your modifications. 

Unlike Cameron’s father though, I do drive my car occasionally. It is a nerve wracking process, but what is the point of owning a car if we cannot go on adventures together? We have two choices, hide it away to protect it, or drive while proactively looking out for the negligent or incompetent drivers.  There is only so much you can do to protect your car from the outside world. Eventually an accident might happen.

What to Do Immediately After the Accident?

At this point there is nothing you can do to prevent the accident. What you need to do is follow the law to the “T”. State automobile law is on your side, as long as you are not at fault. As soon as the accident happens you need to complete these steps:

Stop your car. Pull over to the side of the road if no one has been injured.

When you talk to the other driver stay calm. You may feel like blowing a gasket, but you and your car are better served by being calm and meticulous. In no circumstances should you say anything that might be construed as admitting guilt. Don’t even say a polite “I’m sorry.” The time for niceties has passed.
Call the police about the accident. The police will catalog any injuries and damage to the vehicles.

Collect the other driver’s information and ask the police officer for a copy of the accident report.
Survey the scene and take pictures. Spend a few moments after the accidents taking notes. This is important because monetary compensation hinges on who was at-fault for the accident, and it is important to record critical details while your memory is fresh.

What To Do After

Ensure Your Insurance Company is Fair

At some point, you will need to inform your insurance company that you have been in an accident. Do so immediately after, but do not sign anything, provide a recorded statement, or allow a claims adjuster to look at the vehicle before consulting a car accident lawyer. Insurance agencies may protect you, but they are also a business who can lose money if they pay the full value for every claim that comes across their desk.  Lawyers can ensure that your insurance or the other driver’s insurance company will not cheat you out of the money necessary to return your car to working order.

Look Into Seeking Monetary Compensation from the Other Driver

You may also want to consult a lawyer to talk about filing an accident claim against the other driver. Whether or not the other driver has insurance, they can still be held responsible for the injuries and damages acquired during the accident. If the other driver is uninsured or under insured in an at-fault state, you will be able to file a lawsuit to receive compensation for injuries, monetary loses, and damages. If you live in a no-fault state, who caused the accident is not considered. You will not be able to file a claim against the other driver. You will need to collect your claims from your insurance company.

Car accidents can be hard. They can be made harder when a car is damaged or destroyed that you spent years building and modifying. With the proper preparation and after-the accident strategy, you can receive enough compensation to rebuild the car or begin to modify a new car. It’s not fair, but it’s something.

There is a collection of goods and services that are often sort of hand-me-downs. For example, in my case I used the same barber, mechanic, dentist and doctor that my parents had, and I did so for years because I just didn't really think about it. That’s just where you went when you had to have your hair cut or transmission checked. I also used the same car insurance.

When I started to drive I was bundled into my parents’ family plan and when the time came I just switched over to a personal plan with the same provider.

That is- until I began restoring a classic Corvair (the one deemed “unsafe at any speed” by Ralph Nader). I found that the classic/antique/specialty insurance offered by my company wasn't that great. It just didn't fit for me. I was right on the cusp of shrugging, biting the bullet and signing up when I had a revelation: I didn't have to use the insurance I always had!! I could shop around! It opened a whole shining world of personal shopping scenarios for me and changed my life forever! OK, maybe it wasn't that dramatic but it was certainly a convenient realization for my wallet and insurance coverage.

Anyway, like me, I have the feeling car insurance isn't really something people spend loads of time contemplating. It’s understandable- car insurance isn't exactly the most mind-blowingly thrilling topic in the world to consider but it’s an important one. And it suddenly becomes an all-important topic when the car you've put dozens of hours and thousands of dollars into is blindsided by a bar-hopping party animal.

When I started looking into insurance options for a specialty car my experience was that the big three insurers (the ones with commercials featuring a bubbly, streak-haired, price-gun wielding hipster woman; a British talking gecko and disaster/mayhem personified) didn't have the greatest specialty policies. That too is understandable- they’re huge and accordingly have a huge cut of the market, which means millions of customers, the great majority of whom have convenience and transportation vehicles and the generalized coverage to match. So it’s just not a system that’s really set up to accommodate more personal, specialized policies.

After the shortcomings of the big three became apparent to me, I focused my search for good specialty insurance on the less well-known providers. What worked best for me was to hunt among the companies that weren't so obscure I’d never heard of them, because that made me a little nervous, but weren't so huge that their focus was necessarily on standard insurers. The best bets were reputable and established insurance houses that weren't known for their car insurance and as such offered great policies to compete with the big three monoliths.

The example that comes to mind is a place like the Hartford. They meet the criteria- reputable and established but they don’t pop to mind for car insurance despite the fact that in 2012 they topped JD Power and Associate best car insurance provider list, came in at number three on MSN Money’s ranking and ranked among the top five on pretty much every other list of the kind. They also have a personalized antique/classic/specialty package that’s specifically tailored to a specific car and its owner.

Not that I’m suggesting necessarily that you run out and sign up with them immediately or anything, just that it’s those sorts of places where the best deals are found. In fact, after the research I've done, my advice is: the insurance-provider ranking lists I mentioned above are a great source for finding a great provider. They usually work with data that’s been culled from surveys that involved thousands of customers giving feedback. Once you've narrowed down a list of places that sound good and rank well, look over their specialty policies, get in touch with their agents and find the one that’s right for you! Good luck and good driving.

Author Bio

Edward Oberg is a writer who blogs on everything he finds interesting. While that covers a pretty broad range of possible topics, his writing focus often finds its way to anything automotive, water sports and fishing-related, travel and entertainment. He has a wonderful wife, a beautiful daughter and a friendly, rotund pug named Wallace.