Insurance questions
 

I just got a letter from my insurance company (who shall at this time remain nameless) stating that they will not insure my '79 RX-7 because it has been "customized and/or changed in condition so as to increase the risk substantially." It's been modified by the previous owner to compete in autocross (SCCA Street Prepared) so its not by any means stock but nothing extensive has been changed. Just suspension, oil cooler, etc. Its a recreation vehicle only but is still street legal. I keep it insured to drive to meets.
Has anyone else had problems insuring a recreational car? Did you argue with your company or have you found a sports car friendly company? I'm new to the racing world and would like some input from anyone elses experience with the beurocracy.

Thanks

I'm only curious as to how they found out. I have no direct experience with something like this. However, I did read an article on the subject a few years back so it's not withou precedent.

State Farm was very clear in asking me if my car had any mods on it. They would not insure any kind of modded car for me.

Mine is still basically stock, so I'm on the up-and-up about it, but if I had an incident anywhere near a race course it could get very hairy.

Dave

The dawn of the computer age has enabled insurance companies to monitor entry lists and they can get membership info from sanctioning bodies. All this info is available for a price and it seems some companies are looking and monitoring.

These people insure my full blown RX-7 road race car, they are sports car people themselves, so they are good to work with:

http://www.parishheacock.com/content/

I am with speedturn. I try to use companies that are supporters of racing and don't support companies that penalise people for participating in racing. If more people in the racing community did this companies of all types would respect the buying power of the racing community. Then they would not dare do some of this nonsense. thanks for the tip on the insurance company.

Thanks for the input.

I agree with tims on not supporting the companies who punish those of us who are responsible enough to race legally. I'm going to try to rationalize with my company and send a formal complaint. If it doesn't work they're just going to lose my and my family's consumership.

I wonder how many people are even aware of such a thing??

I know that I've never heard much mention about it, but I have heard alot about how picky car insurance companies can be about mods to a vehicle.

I've also been interested in just getting specialty car insurance, that covers all the important things. If you were in an accident, and your car was only worth 20k to the company, but it was really worth 40K in reality... then that would be a nightmare. :( I know many people are faced with this regularly.

I've also been interested in just getting specialty car insurance, that covers all the important things. If you were in an accident, and your car was only worth 20k to the company, but it was really worth 40K in reality... then that would be a nightmare. I know many people are faced with this regularly.
Today 09:25 PM

I have a suggestion. Save all receipts and get a receipt for all work that will have insurance. If the car is totalled and you can prove the value of the car then the insurance company will be forced to fix it or buy it at the higher number. A friend had an older Jaguar that he had basicly restored get totalled by his now ex-wife. The insurance company first offered a very low write off amount, but once they were shown receipts for over $20k worth of recent repairs they paid over 5 times the original offer. If the company won't give you a fair price force them to repair the car. this usually gets them to reconsider there offer. these companies hate to give anyone money and sometimes you have to fight for what is right.

Your car qualifies as a "Classic" or "Vintage" etc. car. Different terminologies used by different insurance companies. To insure it in this category, they usually require an "acceptable appraiser", meaning they choose. It cannot be a daily driver though.

Grundy, insures cars 20 years or older on an "Agreed Value" without mileage restrictions.

Just informational: There is no insurance company that will insure your car while "racing". I know it has happened when there is a mishap and somebody makes a claim but this is real dicey and is called insurance fraud=felony.

I agree with the other post's in supporting an insurance company that treats you fair as far as your hobby/passion is concerned.

From the insurance guy....but NOT LEGALLY. If you dont understand that statement... just stop reading.

Here is the deal... its about replacement value... say you have a $3500 dollar car...Cost to replace.... you install $10,000 dollars worth of parts to make it a $13,500 dollar car... the insurance company technically is responsible.(because you have insruance on the car)...To replace the 13,500 dollar car that is only worth $3500....Which creates a problem...you have only been paying premiums for a $3500 dollar car... so what we/they have had to do is start asking about modifications... HOWEVER... There is a loop hole... If you VERY NICELY tell your insruance company...hey look... insure it for the $3500 dollars and ill take responsibility for the rest of it... this does three things things...Tells them you are a realistic customer...they are not liable for your mods and it truely makes you a safer driver.... because you dont want to loose 10K in parts and mods.

- From your good neighbor Again... if you dont understand that... move on!


GOOD LUCK!

From their website-

1. Autos we insure must be stored in a locked permanent garaging facility when not in use.

2. Autos we insure may not be used for commuting to or from work or school, used for business purposes or as a substitute for another auto.

3. Autos we insure are not covered while on a racetrack or when being used for: racing, speed, driver’s education, or timed events.

My Parish-Heacock coverage for my race car does not cover it while on the race track, but it is insured while it is in the paddock, and it is insured while I am transporting it in my trailer, and it is insured while is in my garage (which is where most race cars live most of the time.)

Parish-Heacock offers other types of policies for collector cars, etc.

Parish-Heacock gave me agreed-upon value. We both agreed that my 1979 RX-7 is now worth $25,000, and I pay them a $250 year premium to get that $25,000 worth of coverage. I have over $40,000 invested in the car, but on the peripheral ported GT-2 / GTU market seems to be going in the mid to upper $20k range for Mazdas. When I negotiated the agreed upon value, I provided Parish-Heacock with sale advertisements for other tub chassis GTU cars similar to mine that were on the market at that time, which helped prove the value of my car.
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In past years, I have seen race car rental companies make you pay insurance with the contract you sign when you rent their race car. The insurance premium appeared to be 10% of the value of the car for EACH race weekend, plus there was a $2500 deductible for minor damages. In other words, if you want to buy insurance for your car while racing it on the track, be prepared to pay huge $$$ premiums every time your car goes out on the track.

That is why experienced racers will tell you that if you can't afford to crash it and write it off, then you shouldn't be racing it in the first place.

I wonder why they quoted my $500/yr for $10,000 coverage?

Probably because per their requirements it almost never sees the street. I know my uncle uses an insurance for his ferrari where there is a limit on the milage of the car.
That said, I have USAA and I don't think USAA cares too much about it. They never asked me about any mods to the car. I don't race it yet, but I plan on it once the rebuild is finished. I think the previous owner actually notified his insurance about his mods so they would cover them if anything happened. He tracked it all the time and never had a problem.
Also, I believe that the insurance is only obligated to pay for items required to operate the car. For example an aftermarket suspention would be covered, but not a 6,000 dollar stereo system.

Eagle7: I guess they quoted you more because they thought you were either a higher risk or you asked for more coverage than me or maybe you already have a bad reputation in the insurance industry :)