How does modifying your car affect your insurance?
by Éric Plamondon - FPAA, National Bank Insurance paid contributor
Whether I want to or not, there are certain questions I’m required to ask when I’m setting up a new car insurance contract with National Bank Insurance. One of these has to do with vehicle modifications. This week, a client commented to me, “I can understand why the police need to know if I modify my car, but you’re my insurance agent, why do you need to know?” Good question.
Why should this concern your insurer?
Rest assured, there are lots of little car modifications that will be of no interest to your insurer, but you can never be too careful, and since rules differ from one insurance company to another, it’s better to say too much rather than not enough. But why?
Well, because some modifications are prohibited, a top of the line radio is more appealing to thieves, some modifications can be dangerous, and in some situations it’s the insurer who would have to pay if a claim is filed. In short, there are plenty of good reasons.
What’s considered a modification?
Most likely, when you hear the word “modification” you think of a raised or dropped suspension, chrome, aluminum wheels, spoilers, fuzzy dice… The fuzzy dice aren’t actually a modification, they’re an accessory… But you’d be right about the rest of them, though these are just the tip of the iceberg.
Generally, a “modification” means any piece of equipment that wasn’t installed by the original manufacturer. This includes everything from the radio, to automatic seats, a sunroof, and even tinted windows. According to this definition, if it wasn’t there when the car left the dealership, it’s a modification.
But it’s just a radio!!
A radio, or any other gadget that plays music, is an accessory that can be stolen fast, and resold just as easily. Your insurer needs to know if you have a $3,000 sound system in your car, and it’s possible that your premiums will be adjusted as a result. As well as paying for the additional risk, it’s highly likely that amendment #37 would be added to your policy.
Amendment 37a covers the electronic goods in your car up to a certain value. If you add anything else later on, you are responsible for letting your insurance company know, otherwise you risk being compensated only for the partial value of your items. Amendment 37b does the opposite – it allows you to exclude electronic equipment, and so pay slightly lower insurance premiums… But you risk getting nothing if you file a claim.
What if I just don’t say anything?
You’re within your rights to say nothing, but it’s rarely a good idea. When you file a claim, if you’ve neglected to share known information with your insurer, it could have major consequences… For you. What kind of consequences? The kind that sees the amount of compensation you receive slashed, or even go up in smoke. This isn’t a whim of your insurance company – it’s provided for in the Québec Civil Code.
Not sure what’s original and what’s been modified, since you bought the car second-hand? Your declaration is a bit too vague for the insurer’s taste? They may request that you bring the car in for a visual inspection… Or even require it. Essentially, your car insurance policy gives them this right, with the possible suspension of your coverage if you refuse!
I had mags, but I took them off, they’re in the garage
You’ve just changed the sound system in your car, and the old one is one a table in the garage, right beside your old mags, and a spoiler you bought but never installed… Why should you bother mentioning this to your insurer? Because it’s all covered by your car insurance.
If someone breaks into your garage, or if there’s a fire, these items would all be covered under car insurance.
I’m so confused…
It’s not always easy to know what you have to say, do, or even think when it comes to car insurance. But thankfully, that’s what the professionals are there for. Don’t hesitate to contact your insurance company, they’re always here to help.