Lowering your car make void insurance?

Watch out your insurance company may try and scam you. Read on!

Insurance calls the shots
Modified Automobile refused coverage

Are other tuner owners aware?

I'm a 46-year-old IT professional with IBM and have always been a fan of cars.
Not just imports or domestics or muscle cars or trucks, but all vehicles with
four wheels (and even some with two). A year and a half ago, it was time to
retire the minivan and I bought a base 2002 sedan.

It's basic transportation, but still fun to drive with a decent little
four-cylinder engine and five-speed transmission. About six months after
getting the car, I discovered http://www.j-body.org and found that there is a
whole group of people out there modifying their cars. I bought a set of used
lowering springs (40 mm) and installed them myself.

That little change to remove the 4x4 look of the car hooked me up with the
local Durham Region J-Body owners and I got many ideas for other modifications
to my car by attending the weekly Sunday meets at the AMC complex in Whitby.
All were very low-budget and could be done in my driveway.

I entered the car in a couple of J-Body shows as well as ImportFest and The
First Episode. I had a great time and my 19-year-old son also attends the shows
with me.

Earlier this year, I talked with an owner of a Honda Civic who, like me, was
insured with State Farm. He had recently had an accident and his Civic was
totaled. When the adjuster examined his car, he was informed that since it was
modified (that is, lowered) and State Farm had not been informed (as dictated
in the policy), his vehicle would not be covered.

I contacted my agent right away and was requested to bring the car in for
pictures. They checked the car over, took some pictures, and said "No problem.
Thanks for letting us know." About three weeks later I received a registered
letter from the State Farm underwriters informing me that they appreciated the
opportunity to provide me with coverage in the past but would no longer be able
to insure the car. I had three weeks to find another company to look after me.

I have been with them for more than 15 years and have a clean driving record,
so I shouldn't be a risk — they just don't want to cover "modified" cars. I
then started calling most of the companies in the phone book. As soon as you
mention the lowering, they want nothing to do with you. I even had one company
say that they would insure "customized" cars but not "modified."

Eventually, I asked State Farm if my insurance would be re-instated if I
returned the suspension to stock. My agent checked with head office and they
agreed, provided I took the car to an adjuster who would verify the condition
of the car.

While the car was being inspected, I asked the reasoning behind not wanting the
car lowered. Was it because this reduced the height of the bumpers and
increased the risk of damage? No — it was because lowering the car makes it
more aerodynamic and allows it to go faster. I asked about coil-over suspension
so the stock height could be maintained and then lowered for shows. No — that
suspension would probably be stiffer and allow improved performance. This
argument would also seem to apply to new higher performance shocks and struts.
I didn't bother discussing it any further.

My point is that many of the enthusiasts out there who have modified their cars
may very well have voided their insurance without knowing it. The insurance
industry may be able to accomplish what the police haven't been able to (yet)
by making all these vehicles illegal to be on the street because they can't get
coverage.

 

It is not just the fact that the car can be driven faster. I would be more
afraid by the BAD modifications.
Most people will lower their car just for the look. Meaning that the
handling of the car would acutally be worse with the "sport" suspension kit
making it easier to get an accident.

 

I think I have to disagree with you on some points here. The cars horse
power is not going to change by lowering it so it can be driven just as fast
as before. If one uses the proper kit, sport or otherwise, to lower their
car the effect will be a lower roll center and better cornering stability.
There are BAD lowering jobs that will make the car a road hazard. To
blindly say that if the car is lowered it will be more likely to get into an
accident is unfair to all of us who 'do it right', Jerry.....

 

What I mean is that if the car is lowered properly, you can actually drive
it faster as you can negociate the curves at higher speed.
If it is lowered just for looks, it becomes a road hasard.
Will the insurance try to find out how you drive your car or if it was
lowered right? No, they don't care.

 

STATE FARM SUCKS! Stay away from this company at all costs.
They try to avoid paying any and all claims.

 

I saw on the news that in New Brunswick, the insurance rates are so high
that you're lucky if you can even afford to have car...

 

Affording a car is all relevant. If you're a young torontonian driver
and plan on leasing a new car..expect your monthly insurance to be
equivalent to your lease payment (even if your dad insurance the car for
you)... Then, there's the high price of gas....

Pars
98 Hatch