Modifications & Insurance

[StokeyStag]

Went to a talk tonight given by Pete McIlvenny, the Director of Cherished Car insurance at Carole Nash. All very interesting, especially when he got talking about modifications - which are classed as any changes to the vehicle so that it is different to the original factory spec.

Most of us would think of changes to the brakes, or maybe a different engine but ignore the obvious like:

• electronic ignition
• hazard lights
• door mirrors (yes, really)
• towbars
• alloys (didn't most, if not all, Mk1s come with steel wheels ?)
• electric fans
• header tanks
• non-standard carburettors (or anything else)
• leather interior
• auxiliary lights

The list is endless and most changes won't result in an increase in the premium, the important thing is to declare them. Interestingly, if you use a website to obtain your insurance and enter three or more modifications they will all automatically send you premium northwards and it's best to speak to a broker.

He also pointed out that if you have spare car parts (anything from a switch to an engine or gearbox) stored in your garage or shed they are not covered by your household contents insurance (because they are car parts) and they aren't covered by your car insurance because they are "spare" and not part of your car.

Who said that running a classic car was simple

Mark

[new to this]

thanks mark its good to have an idea what is classed as a modification

dave

[V Mad]

We shouldnt forget our modern cars too. Wheels and towbar for a start apply to mine.

[KOY 23]

We shouldn't forget the nut behind the wheel.

[Paul Goldsmith]

Hmm, got me thinking about the hardtop on the garage not being insured :-(

[Goldstar]

Small garage?

[andy p]

Hmm, got me thinking about the hardtop on the garage not being insured :-(

I would think this is different as it is part of the car not a spare part, and I hope you meant IN the garage and not ON it

[andy p]

I declared my wooden steering wheel and wolfrace wheels when I did mine, not that it made any difference to the price

[Paul Goldsmith]

Small garage?

A very stylish garage

Puts me in mind of the Stag with the odd looking home-made wooden hardtop, which IMO looked like a shed, posted on here a few years back !

[Motorsport Micky]

I would think this is different as it is part of the car not a spare part, and I hope you meant IN the garage and not ON it

Yes, but when your garage burns down it means you have to claim against your car insurance for that hardtop rather than your house insurance which means 2 lots of insurance claims and 2 lots of lost no claims bonus and better yet 2 lots of non claim backable excess monies which they take from you. Ain't insurance great.

Micky

[Paul Goldsmith]

Yes, but when your garage burns down it means you have to claim against your car insurance for that hardtop rather than your house insurance which means 2 lots of insurance claims and 2 lots of lost no claims bonus and better yet 2 lots of non claim backable excess monies which they take from you. Ain't insurance great.

Micky

Ah, but at what point, having not been on the Stag for absolutely ages, does a hardtop qualify merely as a household ornament

[V Mad]

Yes, but when your garage burns down it means you have to claim against your car insurance for that hardtop rather than your house insurance which means 2 lots of insurance claims and 2 lots of lost no claims bonus and better yet 2 lots of non claim backable excess monies which they take from you. Ain't insurance great.

Micky

What I dont get about insurance is that companies will not pay out if the item is already covered on another insurance policy. So if they both claim that, neither will pay.

[73stagman]

When I set up the Stag insurance with Adrian Flux each and every modification was noted. Paint (colour and type), bodywork (front spoiler) engine mods (all of them, carbs and ignition, in addition to the change of engine type and size), suspension mods, exhaust mods (custom made stainless steel) brake mods (Discs are grooved and drilled) wheels and tyres (Alloys and tyre sizes).... etc etc. The only hassle was the paper work as none of the mods made any difference to the price of the policy. The only thing that changed the price was moving house! (By a few pence downwards) There was talk of an engineers report but as the engine was correct to the V5 they decided it was ok! (A report was not required when the change was done in the eighties)

[Stagsongas]

Naturally I have a lot to do with modification as I advise every conversion customer that they MUST let their insurer know that their vehicle has been LPG converted, and invite the insurer through the owner to view the online UK LPG certification. The premium is not increased when a vehicle is properly certified in that way.

But it's not that simple. If there is a an 'uneconomic repair' claim later on, the insurers will pay out (or have the car repaired if it is 'economic' ).

What they won't do is pay out for the conversion cost if the vehicle is judged as uneconomic to repair, simply because the didn't charge any extra to cover the increased risk. More risk to loss = a higher premium is charged. Actually, that's quite fair.

However, in the past (before I twigged it and began advising owners) this has come as a surprise to at least two customers who later suffered uneconmic repair damage to their vehicles.

The insurer will pay out for the car only, not the 1 - 3k cost of the conversion. The only way to remedy the situation is for us to attend the car, assuming it has not been whisked off to the other end of the country, and then remove the LPG system. At least then the owner will get something out of it, although if it's installed in a replacement car it has a labour cost.

The reason I mention this is not to discuss LPG, the same applies to any modification fitted to your vehicle, not standard. A good example would be alloy wheels?

I mention this to make everyone very well aware that if they fit ££££'s worth of mod.s to their vehicles, the insurer will take those mod.s onboard, and often charge no more for providing cover, but that does NOT mean they will pay out the value, either new or current, for any items added in modification.

Two rules I have to help my customers avoid 'uninsured losses'.

1. Never let your insurer (or their agents) take your damaged vehicle away before you have agreed a settlement, if only to ensure you get to remove your uninsured mod.s before it is disposed of.

2. If you want to insure the mod.s added to your car, tell the insurer about every single one, keep records of what they cost you, and be prepared to pay more for your insurance.

The important (and quite fair) principle to keep in mind is as I've said above;

More risk = More premium. No-one provides insurance for nothing. Do not assume that the cost(s) of any mod.s are insured simply because you declared them at the time of proposal.

Check on this first, not when it's too late, please. I'd hate for anyone to lose out just because it has not been mentioned or considered.

Regards

Steve

[V Mad]

But what about if the mods were all done and documented before you obtained the quote? Surely they have priced the insurance to cover the car as a whole.