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Jeremiah
12-25-2012, 01:51 PM
http://25.media.tumblr.com/tumblr_lk8ktuHQ3B1qh1yrro1_1280.jpg
http://www.insure.com/car-insurance/upgrades.html

For some car owners, "bling is king" and style and speed are everything. But one thing is certain: "Souped-up cars" or "bling machines" — as they are commonly called — are considered high risk by many car insurance companies because their parts are often worth more than the car itself, and their owners have a reputation for driving on the wild side.

It's not that you can't buy car insurance coverage, but there may be restrictions. These vary by state, insurance company and the extent of modifications you’ve made to your vehicle. Your policy may restrict you from driving on a race track, limit the number of miles you drive per year or cap how much you will reimbursed for your car in the event of a total loss.

Try telling Jim Kreisman, owner of Jim Kreisman Insurance Agency Inc., based in Scottsdale, Ariz., that you want to insure a tricked-out '95 Acura Integra that — without modifications — is valued at roughly $5,000. But you want coverage for the car’s newly modified 385 horsepower engine ($5,000), chrome donks (wheels) with spinning reels and racing tires ($10,000), chrome bumpers ($420), vertical doors ($1,000) and neon undercar accent lights ($200). Maybe you even added a custom paint job and body art to the car that cost you another few thousand.

"Good luck," says Kreisman. "We'll insure Ferraris and Bentleys, but souped-up cars? We won’t [insure] them. They are too high risk. . . . The [standard insurance companies] won’t touch them."

Bling machines are not necessarily luxury vehicles, classic hot rods or fancy sports cars. Popular choices for souped-up cars are often older Honda Civics, Acura Integras, Ford Mustangs, Mazda RX7s and Nissan 350Zs — because you can buy them cheap and use your bucks for the bling.

"They take the inexpensive cars and soup them up," says McKeel Hagerty, chief executive of Hagerty Insurance Agency in Traverse City, Mich., an automotive specialty insurer. "Now they got a high performance car for not a lot of money."

You may pay tens of thousands for parts, but overall it’s still cheaper than buying a new Ferrari. Hagerty Insurance specializes in offering insurance for modified cars. These include classic cars, show cars, hot rods and souped-up tuner cars. However, Hagerty will not insure your bling machine if it's a regular-use vehicle that you drive every day — like a showy car you drive to work.

"If their use is consistent with a collector car, we will insure it," he adds. "But if it’s a race car, we have a program that covers it to and from the track," but not on it.
Souped-up auto insurance bills

Car insurance quotes for a bling machine are obviously higher — if you want to be fully covered for the modifications you’ve made.

Custom wheels

Let's say you want to insure a '93 Toyota Supra that you bought for $7,000. You spent four years making modifications to it. It now has a 600-horsepower engine, custom paint job, spoilers, ground effects, custom wheels, a highly customized interior and roughly $30,000 worth of stereo components. You poured around $130,000 into the car. Hagerty Insurance will sell you an agreed-value policy insuring your car for that amount.

That means if you total it, you’ll receive predetermined amount from your insurance (in this case, that's $130,000). But you will not be covered if you race the car and crash it. Your annual premium will cost between $2,000 to $2,500 — and that’s assuming you have a clean driving record. Hagerty also requires that each driver in your household (where your bling machine is housed) has a regular use vehicle.

"Modern day tuner cars are an inexpensive way for car enthusiasts to build the car with the looks and performance of their dreams for much less than the cost of a high end sports or exotic car," Hagerty says. "It’s the fun car that you don’t have to have."

There are other insurers that specialize in coverage for modified cars. According to its Web site, K&K Insurance, based in Fort Wayne, Ind., sells policies designed for professional racing teams, motorsports country club members and individuals who drive street-legal, high-performance cars at race tracks. The minimum you would pay for your annual premium is $1,500 a year for $1 million in coverage.

But you don’t necessarily need to find a specialty insurance company in order to get an auto insurance quote for a modified vehicle. It depends on how much work you’ve done to the car. For example, let's say you spent a few thousand to upgrade your stereo equipment, add custom wheels and install a spoiler and neon undercar accent lights. You may find coverage with a standard insurer.

Custom artwork

Leah Knapp, spokesperson for Progressive Insurance, says that when you purchase comprehensive or collision coverage through Progressive, you will automatically receive at least $1,000 of custom-parts and accessory-equipment coverage in most states. If that’s not enough, you can purchase up to $4,000 in additional coverage.

"We define [custom parts and equipment] as anything that is not offered by the original manufacturer of the car or installed by the dealer as a part of the original sale," Knapp says.

Insurance companies may have their own ideas on what they consider "modifications." Have you ever spotted an "art car" on the road? These cars are modified as an act of personal artistic expression. They can range from paint jobs in the form of hippie "flower power" patterns to something as extravagant as turning your car into a drivable sculpture with protruding spikes. You may have a hard time getting a car insurance quote.

"Just because you painted the car with purple polka dots and it cost you $5,000 doesn’t mean that it increases the value of the car," says Kip Diggs, spokesperson for State Farm Insurance.
Disclose your modifications

When it comes to more traditional modifications, Diggs says State Farm looks at them on a case-by-case basis. It does not charge a higher premium for modified vehicles but it’s highly unlikely that you would be covered for high-powered engine modifications or very expensive upgrades under a standard cash value policy.

In this case, you may want to consider "stated cash value" or an "agreed value policy." Agreed-upon value policies are just as they sound: You and your insurance company both agree on the value of your vehicle and it does not depreciate. Stated cash value policies take into consideration the modifications you’ve made, but depreciate in value each year the policy is in effect.
Tell your insurer about these
kinds of car improvements
premium wheels & tires new stereo equipment new paint job or body work
pickup truck cap/bedliner front or rear spoilers sun or moon roof
new upholstery or carpetting new or modified engine hood ornaments
new transmission auxiliary lighting (fog lights) alarm or security system
new CD or DVD player chrome bumpers

undercar accent lights

No matter how you've modified your car, it's important to let your insurance company know. Be specific about the types of modifications you've made. While you may be tempted not to tell your insurance company about your upgrade escapades for fear that your premiums could increase, it is not a wise move. In the event of an accident, you may not be reimbursed for all the bells and whistles you’ve added to your car. In a worst-case scenario, your insurer could possibly void your insurance policy because of undisclosed modifications.

"What we want people to do is to let us know when they make modifications," Diggs says, adding that it’s a good idea to save receipts for any custom work completed on your car. It’s smart to take photos as well.
Racing & track exclusions

Most insurance companies, including Progressive and State Farm, will not cover you if you crash while racing — legally or otherwise. In some states, they may also have exclusions that will not cover damages suffered while test-driving your car on a race track. Progressive’s exclusion says that coverage does not apply to a "loss to any vehicle resulting from, or sustained during practice or preparation for: (a) any pre-arranged or organized racing, stunting, speed or demolition contest or activity, or (b) any driving activity conducted on a permanent or temporary racetrack or racecourse."

Some states will not allow insurance companies to deny coverage for accidents that occur as a result of driving on a race track — as long as the vehicle was not involved in a race.

Jerry Kunzman, executive director of the National Auto Sports Association, says that some states will not allow insurance companies to exclude coverage for accidents that occur as a result of driving on a race track — as long as the vehicle was not involved in a race. So, you should be able to drive your souped-up bling machine as fast as you want in the confines of a race track and still be covered by your insurance company. But you need to check with your state’s department of insurance and read your insurance policy in detail.

"More and more insurance companies are putting in exclusions," Kunzman says. "The bottom line is to call your insurance company and get a copy of your policy."


In most cases, drivers of cars that are cop magnets are terribly underinsured for their modifications. "You have the car parked on the street and a garbage truck backs into it. It’s totaled," says Diggs. "By the end of the day, you’re probably not going to recoup all that."

wannafbody
12-25-2012, 10:16 PM
I insured my 2000 TA with American Collectors. I got the car appraised and they wrote the policy for the appraised value. I'm actually paying less for more coverage.

Jeremiah
12-26-2012, 02:01 AM
I insured my 2000 TA with American Collectors. I got the car appraised and they wrote the policy for the appraised value. I'm actually paying less for more coverage.

Whats a TA? color or chassis code? Thats good, less $/more coverage.

If I start spending more money on my 2000 NB then I really should consider insuring all my upgrades.

maharaj
12-26-2012, 09:25 AM
Great info. I tried to insure mine with Hagerty and they wouldn't write a policy for me.

Phatmiata
12-26-2012, 09:32 AM
Wow great info!! Some things to think about for sure.

Martin
12-26-2012, 09:34 AM
Whats a TA?
Trans Am

Heyitsryan
12-26-2012, 10:04 AM
Bling machine? Was the author of said article mentally challenged or just socially inept?

Jeremiah
12-26-2012, 12:20 PM
Great info. I tried to insure mine with Hagerty and they wouldn't write a policy for me.


Wow great info!! Some things to think about for sure.


Trans Am


Bling machine? Was the author of said article mentally challenged or just socially inept?

1. Yeah its definitely on a case by case basis deal/many factors to consider.

2. Yup yup thought it would be helpful to those who plan or are spending considerable mula on their sport compact/classic/etc.

3. Thanks

4. LOL its always the non car people/enthusiasts. I would have just said modified vehicle.

My friend recently purchased a beautiful Tafetta White 2001 Acura Integra GSR (he was looking for a Type R but to no avail)
and so far has about $8K into the car. Since the car is worth around 5-7K I believe he insured all his modifications (stereo, wheels, suspension, exhaust, etc) He saves all the receipts in a folder and takes pictures. That way if someone crashes into him and totals his car, he wont be so much on the losing end if any since he insured the car more appropriately.

On my 2000 Brilliant black NB I just have some Kosei K1 wheels, OEM hardtop, and tinted windows. But if I start spending more I will reconsider/reconfigure my policy.

91BRGLE
12-26-2012, 12:36 PM
Great info. I tried to insure mine with Hagerty and they wouldn't write a policy for me.

I'm currently insured with Hagerty, I guess I'm lucky!

SM16RMSM
12-26-2012, 02:11 PM
Wow, I didn't know about this kinda stuff.

Jeremiah
12-26-2012, 04:40 PM
Wow, I didn't know about this kinda stuff.

Yup just something to consider if you modify your car.

Mine is pretty much stock now that I think about it (OEM hardtop purchased for $800) and some wheels and tint. So as of now since I didn't sink a whole lotta money into the car I am not worried. But to spend $5K+ its definitely worth considering if you can afford to lose the money you put in/if its worth it to pay the higher premium. All depends on your financial situation/needs/wants/etc.

Its like if I bought a 88-91 CRX (these things are pretty much worth what someone is willing to pay for em) and planned on spending about 5K on the car (wheels/suspension/exhaust) then I would insure all of that because most likely just getting into a very light fender bender will total out the car and I will be out 5 grand since the car is worth less than a $1,000 I believe...couldnt even get a value on KBB the car is do damn old lol. I always had a soft spot for CRXs and I see many that are modified to hell...I always wonder what type of coverage the owners have chosen for them. Either they will get stolen or in a collision (usually not the owner's fault but some terrible driver)

http://i113.photobucket.com/albums/n230/wawrick_81/5734333920_4a9300e3a9_o.jpg

Martin
12-26-2012, 05:12 PM
My car is slightly modified. I talked to my insurance agent about it not being a "normal" Miata, but he didn't seem to think it was a big deal. Maybe I should actually show him my car. Hmm...

maharaj
12-26-2012, 07:48 PM
My car is slightly modified. I talked to my insurance agent about it not being a "normal" Miata, but he didn't seem to think it was a big deal. Maybe I should actually show him my car. Hmm...

Yes, you should because you have A LOT of time and money into your ride.....I am going to try Hagerty's again and see what they say.

Demon I Am
12-26-2012, 08:47 PM
Allstate told me that they'd give me modified insurance on the 1990 miata, if I carried full coverage, which is stupid expensive. I'd pay the value of the car within a year of paying the insurance cost.

kung fu jesus
12-27-2012, 08:48 AM
I had an added policy, or rider, on my '92 for the hardtop. When asked how much it would cost to replace it, I gave them the dealer price at $2400, I believe. The extra items I just added their value to $2000 in additional value. Well under what I paid. I also tried to have it insured as a classic car this year to no avail. The extra cost of this modified policy wasn't that much, but given my age and clean record I expected as much.

I tell this to anyone who tracks their car: if you can't afford to walk away from the value of your car, don't track it. In the grand view, it is unlikely you will damage your car at the track, but it does happen. My opinion was if I stuffed the car at the track, I could be in another Miata for about $2k and transfer over what wasn't damaged. You also have to consider the group or company staging the event. If they don't have a great reputation for keeping the event safe, DON'T participate. Some try to stuff as many vehicles on the track as they can to lower the price, most often at the expense of safety. You also have to consider who else is on the track with you are out there with a bunch of novices in cars they cannot control reasonably, or control themselves, get off. It doesn't matter if it's a bunch of ratty Hondas or brand new Porsches, testosterone and ego don't mix and can be extremely dangerous to you and your vehicle. Ultimately it is up to you to investigate the HPDE you plan to participate with.

If you race on the street, well, Darwin is watching you.

maharaj
12-27-2012, 09:33 AM
I tell this to anyone who tracks their car: if you can't afford to walk away from the value of your car, don't track it. In the grand view, it is unlikely you will damage your car at the track, but it does happen.

If you race on the street, well, Darwin is watching you.

AMEN!

Phatmiata
12-27-2012, 09:33 AM
................ I also tried to have it insured as a classic car this year to no avail. ..............



I was told by another member that the law here in Florida was recently changed and in order to insure a car as a "classic car" it needs to be 30 years old. :fp:

maharaj
12-27-2012, 03:14 PM
I wonder if that has to due with the license plate type? I was at a car show last week and saw some 'Antique' plates as well as 'Hot Rod' plates.