Insurance on a heavily modified Mustang

[Guard5.0]

American Modern and a few others offer decent rates. Just be prepared to show proof of value, potential drivers, mileage limits, etc.

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[esacteksab]

Spoke with Grundy http://www.grundy.com/

$50k agreed value $250k/$500k, $0 deductible $760/yr. No mileage restrictions. Can't be primary/secondary vehicle. Can't be used to drive to work, errands, etc. Only allowed for pleasure driving, car shows, parades. Explicitly said no motorsports/racing.

Since I'm not looking for track insurance, I'm OK with this. She did say that this was all contingent on photographs, and underwriters valuing the car. In the event they couldn't find $50k, they'd ask for receipts/appraisal.

 

[EFI]

I see that most of you are talking about modifications in the sense of aftermarket stuff. However, has anyone dealt with modifications that are not aftermarket?

For example, I have a '04 Cobra with 170k miles that I've used as my DD since I got it back in 2003. It is fully insured as a normal car, and if it were to get totaled I would get a payout in the value of a 12 year old car with 170k miles.

However, last fall I went in a did a full refresh of the drivetrain. Brand new engine, brand new transmission, brand new IRS (among other stuff). So while these aren't "aftermarket" modifications, my car's value isn't exactly the same as any other 170k mile 2004 Cobra. So I imagine I would need some sort of different coverage so that in case of a total writeoff I am covered for the true value of the car as is and not one with 170k miles.

I have yet to talk to my agent about this, but what experience do you guys have with something like this where it's not aftermarket but the car's value is more than what they think it is?

 

[esacteksab]

I see that most of you are talking about modifications in the sense of aftermarket stuff. However, has anyone dealt with modifications that are not aftermarket?

For example, I have a '04 Cobra with 170k miles that I've used as my DD since I got it back in 2003. It is fully insured as a normal car, and if it were to get totaled I would get a payout in the value of a 12 year old car with 170k miles.

However, last fall I went in a did a full refresh of the drivetrain. Brand new engine, brand new transmission, brand new IRS (among other stuff). So while these aren't "aftermarket" modifications, my car's value isn't exactly the same as any other 170k mile 2004 Cobra. So I imagine I would need some sort of different coverage so that in case of a total writeoff I am covered for the true value of the car as is and not one with 170k miles.

I have yet to talk to my agent about this, but what experience do you guys have with something like this where it's not aftermarket but the car's value is more than what they think it is?

So my friend has an 03 Cobra that she insures with Hagerty's. She has an agreed value policy of $25k (she's started to put money in it and fixing it up). Hagerty does have mileage restrictions so if this car is still your DD they won't insure it. Most agreed policies seem to have restrictions on how/when/where you can drive the car.

Your cobra is a low quantity production vehicle, so it's rarer than say a base GT which is why I believe Hagerty will insure it and not my car.

You should absolutely do something, I wouldn't expect the likes of Geico, State Farm, etc. to help you out in the event you wrecked your car tomorrow w/o an agreed value policy or a rider.

 

[EFI]

So my friend has an 03 Cobra that she insures with Hagerty's.

Unfortunately my state laws (MA) have it that in order for a car to be considered a collector vehicle it has to be at least 25 years old, so most collector car insurance companies can't insure it here. There are a few that would, as it's considered like you mentioned a low production car, but even then they have mileage restrictions and you cannot ever use it as anything but a toy. I put at least 10k miles on the car daily to work and stuff so that won't fly with them.

I will eventually move on to something else for a DD and let the Cobra sit as a toy, at which point I will use one of those companies. However right now I don't have, nor want, that option so alas it has to be insured as a regular street car.

The first person I talked to this morning from my insurance had no idea, they were like "oh we'll just increase your bodily limit and shit"...I'm like what is that going to do about the payout for the actual vehicle and she just gave me a blank stare like I had asked her to explain me the meaning of life.

Do other major carriers(geico, state farm, progressive etc.) offer agreed value coverage on regular use cars?

 

[Shouldhavegotthegt]

Spoke with Grundy http://www.grundy.com/

$50k agreed value $250k/$500k, $0 deductible $760/yr. No mileage restrictions. Can't be primary/secondary vehicle. Can't be used to drive to work, errands, etc. Only allowed for pleasure driving, car shows, parades. Explicitly said no motorsports/racing.

Since I'm not looking for track insurance, I'm OK with this. She did say that this was all contingent on photographs, and underwriters valuing the car. In the event they couldn't find $50k, they'd ask for receipts/appraisal.

If you can't use your car as a primary or secondary vehicle that is mileage restrictions. So basically you can drive you car once every 3 months.

You don't have a lot of recourse for aftermarket stuff. The insurance company is going to payout blue book just like when you trade your car the dealership isn't going to give you an extra $10k for your mods so everyone strips it down before selling it.

Some company offers custom parts and equipment coverage but that's it.

Source: licensed insurance agent.

 

[esacteksab]

If you can't use your car as a primary or secondary vehicle that is mileage restrictions. So basically you can drive you car once every 3 months.

You don't have a lot of recourse for aftermarket stuff. The insurance company is going to payout blue book just like when you trade your car the dealership isn't going to give you an extra $10k for your mods so everyone strips it down before selling it.

Some company offers custom parts and equipment coverage but that's it.

Source: licensed insurance agent.

You are correct, them limiting where/when you drive your car is absolutely mile restrictions. But if I went to a car show in KS or TX, I can put the 1000 miles on my car and not care, unlike a policy that restricts me to 3k or 6k per year.

What I'm confused about is if I have an agreed value policy, why would they not pay me out the agreed value rather than blue book on it?

 

[esacteksab]

Unfortunately my state laws (MA) have it that in order for a car to be considered a collector vehicle it has to be at least 25 years old, so most collector car insurance companies can't insure it here. There are a few that would, as it's considered like you mentioned a low production car, but even then they have mileage restrictions and you cannot ever use it as anything but a toy. I put at least 10k miles on the car daily to work and stuff so that won't fly with them.

I will eventually move on to something else for a DD and let the Cobra sit as a toy, at which point I will use one of those companies. However right now I don't have, nor want, that option so alas it has to be insured as a regular street car.

The first person I talked to this morning from my insurance had no idea, they were like "oh we'll just increase your bodily limit and shit"...I'm like what is that going to do about the payout for the actual vehicle and she just gave me a blank stare like I had asked her to explain me the meaning of life.

Do other major carriers(geico, state farm, progressive etc.) offer agreed value coverage on regular use cars?

So Hagerty's "Collector" is not 25 years and older, rather it's "is this rarer than a Taurus that isn't an SHO" sort of thing.

But since it is your DD, I think you're SOL. Grundy will allow you to do agreed value with no mileage restrictions but it cannot be primary/secondary vehicle, cannot be used to drive to work, errands, etc. It's purely a pleasure vehicle.

When I had my Nova State Farm would do an agreed value policy (special rider), but required an appraisal. Not certain if they'd take receipts (Hagerty's and Grundy's will take receipts as proof of value).

If you could find a competent car insurance agent, I think they'd understand what you have and likely be of more help.

 

[EFI]

So Hagerty's "Collector" is not 25 years and older, rather it's "is this rarer than a Taurus that isn't an SHO" sort of thing.

Right. There are a few companies that will insure more than just "collector cars" and that's the only way I can get this type of insurance in my state. Most however only insure collector cars, and according to the state those have to be 25 years or older...so they don't qualify for their coverage and since they don't insure other types of cars I can't use them.

Thanks, I will try some others or a more competent agent.

 

[Shouldhavegotthegt]

Not a lot of companies will do stated value policies on new cars. Only collectors. We had an issue with a guy that bought a new GT350 and he wanted the ADM factored into the value. We wouldn't do it. Why would we? You paid a fee to be able to purchase that car. It has nothing to do with the value. Just like we are not going to reimburse your gas guzzler tax, registration, taxes, etc. just what the car is worth.

Unfortunately mods are at your discretion. You do it because you want your car to stand out or perform better. It doesn't increase the value of the car. It is still the same car you bought with a bunch of stuff bolted on.

I have mods too but I don't expect to get any money for them from my insurance company.

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