car insurance question - TD MM not allowing car mods

[toysareforboys]

SF gets an A++ in my books, And they let me choose the best shop of all.....ME, they cut me a cheque for more then I was going to ask for.

Be careful with state farm!!! I wrote off my 08 R6, they cut me a HUGE cheque, covered all of my aftermarket goodies, onboard camera, etc. even without receipts.

When I bought my new bike, my agent asked me to fax her all the receipts when I "upgrade" it this time. One of the first mods I did was the Power Commander V, and when I faxed them the receipt, they said they would be unable to insure me if the Power Commander was installed on my bike!!! I asked why and they said "because it is specifically designed to increase the horsepower", but technically I'm using with the AutoTune to save fuel (18% in fact!), but they didn't want to hear it. They said either the power commander goes, or they go! When I faxed them the receipt for my Two Brothers muffler I called and asked if that was exclude me from coverage as well and they said "No, it's just a slip-on. It's designed for sound, not horsepower. If it was a full system then yes."

Sounds like it's not only TD that's getting picky.

-Jamie M.

[VifferFun]

Hi Tom C.

Insurers generally don't want to insure vehicles which have been "modded or altered", in part because there is no way of knowing whether any of the modifications affect the safety of the vehicle. Insurers may have a rule that they will not insure a vehicle for improved speed or performance. In the case if a Jeep with a lift kit or something else extreme like that this can affect the centre of balance (easier to tip over etc). So you can see why insurers are reluctant to insure these vehicles.
We've also seen the kids driving modded Honda Civics - they may lower them by cutting the springs (although some are more professional), and to save weight (to make the car faster) some even remove the bumper re-bars etc, not to mention nitrous etc...
Point being insurers don't usually want these kind of vehicles.

On to your question.

Your friend has a modified vehicle and hits and kills a pedestrian, or some other similar tragedy. Your insurer will still be required to pay for the pedestrian, or bridge, or house or whatever else he ran into. There are provisions that could reduce his liability limits to $200 000 and make his liable for some portion of the claim the pedestrian or whoever may bring against him. It is also possible his insurer may seek reimbursement from your friend for what they have to pay the pedestrian (refer to Section 258 of the Insurance Act - but this would be very rare).
As for your friends car - that claim is much easier to deny in the case of a misrepresentation or material change in risk. He'll be left with a smashed up car and a denied claim.

So, if your friend has modified his vehicle he should tell his insurer. If they choose not to insure him any more hopefully the reasons above may explain why. If he doesn't tell his insurer and something happens, he may find himself in some trouble.

Thanks for the detailed explanation! This is a recurring question of many members on the board.