F/I setup - Canada, Ontario .... insurance 43ll....

Hi All,

I'm 99% close to pulling the tigger on F/I, but I have one last issue that im not clear on, most posts are dated on the google searches. Anyone in this form live in the toronto ontario area with F/I on any car, and some knowledge on the subject. I'm looking for an insurance broker to talk - to as mine seems less than receptive. If I mess up my car and I haven't reported the modification to them I'm out the car and the mod worse case or do they potentially bail on the only thing that matters, the public liability. This is what remains unclear to me, so I'm looking for facts ... however it seems there isn't a straight answer out there.

Anyone ?

from http://forums.evolutionm.net/canadia...fied-cars.html

so they scare people into disclosing their mods, and then they immediatetly cancel the policy.

so if you don't disclose your mods, you won't get replacement value if your car is stolen. if you do disclose your mods, you run the risk of having your policy cancelled.

but the key issue is, if you don't disclose your mods, can the insurance company deny third party liability coverage? don't know, but the quebec govt bulletin quoted in the link says performance upgrades themselves are not a problem:

I live in T.O and have had F/I on the car. Yes the insurance will not cover the car if something was to happen (Bad accident) but in 9 out 10 cases they never know because everything looks so stock. One of the ++ is that you dont pay insurance for a high HP car. Its all up to the broker and the insurance company you go with. But you will pay more for a car that has been modified.

From what I remember asking my insurance broker 2 years ago was that in the event of writing off the car from an accident you get the value of the car net of any modifications you have done. Unless, you reported those modifications to the insurance broker and as a result your policy was updated to reflect the extra cost. I can't seem them denying your claim in case of an accident or refusing to insure your car because it is super/turbo charged. Only thing they will do is say well .. the car is worth 10K as per blue blook and we do not recognize the value of any modifications done to the car. If you find out more let us know. I am contemplating super charging my car instead of updating to a 335i. Much cheaper to keep my car and mod than to blow more money on another depreciating asset.

From personal experience, they will cover mods if you can get a receipt like new tires, and add a little bit to the actual value of the car. But even with state Farm and really good coverage, things major like superchargers and headers, rims will not be reimbursable unless you have a agent/adjuster come out and re-praise your car resulting in higher payments..

I have asked the insurance brokers what happens if my modified car is written off and if I can buy additional insurance to cover the mods. They said no, unless I had my car apraised (people with collectible cars do that). They told me to keep receipts and the cost of mods would be included in negotiations.
This happened to my friend with modified Acura. The book value was about 5K, he bought it for 11K (the thing was a NA beast) and got about 9K one year later when it was totalled. It still sucked and it took some long negotiations but it was better than getting 5K book value.

Hey All

Thanks for the info so far. Basically the coverage on the car I don't so much care about , if I don't tell the insurance company, I can't expect to be compensated for any modifications / stuff I add - same with the stereo gear. Like I said its just the liability, if something stupid happens, no matter how careful you are. Seems like you just lose out on the $$ for the modification so far, which is reasonable. Too bad its hard to get a straight answer, or why insurance companies can't take into account these things for mature folks. Next you won't be able to drive a kit car, or a restored car because it no longer has factory brakes, and suspension even though the newer components you put on are much better... sigh.

I know that with my insurance (TD General) I had to go to their "location" and get pictures taken of my every car that is insured with them. They asked me stupid questions like "do you have tinted windows?" and "do you have stock stereo?" they also took pictures of the motor bay and odometer. It seemed like an actual appraisal, not no, its their procedure. Based on that my insurance was calculated, because apparently they do not believe you when talked on the phone. This is also to cover their ass in any case.

I didnt mind, as I came out with the cheapest quote at the end of the day and the photo guy complemented my cars.