Page 1 of 5 123 ... LastLast
Results 1 to 10 of 41
  1. #1

    more about insurance...

    Several Kawi riders had a question about insurance, so i thought I should post something here to answer their questions.

    Originally posted by Riverrunner:

    "Actually I would love to know what the insurance ramifications are for modifying a boat from company specs, so PLEASE enlighten us. As far as I know, and as far as I can tell from my insurance forms, I have never read a clause that states my insurance is void if I modify my car, boat, PWC, airplane (joke), or anything that moves from company specs. Perhaps your insurance is different, but I have NEVER had an insurance contract voided if any modifications were done unless the purpose of the modifications was to defraud the insurance company, in which case, it was a criminal mater. Now if you have any factual information, such as a copy of an insurance contract that clearly states that ANY modification will void a liability contract; that placing an additional washer, bypass, or whatever people are doing will instantly void a policy, PLEASE show us. I am sure that many of us on this board would be very interested AND alarmed."

    With regards to the insurance issue, you'll have to contact your particular insurer.

    Check their underwriting guidlines to see if the cover vehicles which have been modified by the user to exceed factory safety specs.

    Remember, the manufacturer placed a speed limiter for a reason. Removal or tampering with this safety device can and does cause the vehicle to reach speeds the manufacturer has deemed unsafe, as indicated by their placement of a limiter in the first place

    Progressive insurance is quite clear about this in their underwriting guidlines, just look them up, or better yet, ask oyur broker.

    Remember, when you signed up for insurance, they asked you the type of craft you were insuring.

    If you failed to notify them that the craft you listed is not in line with factory specs, as the poliicy was written, than you are likely guilty of fraud if you knew the vehicle was modified and failed to notify them of the fact.

    Here is a link to an insurance law page. It is regarding automobiles, but the theory and case law are much the same.

    Incidentally, if you are aware that you are operating outside the underwriting guidlines, you are most certainly commiting fraud by not notifying the insurance company which entered into a good faith contract based on the information YOU provided them.

    The onus is on the insured to understand the underwriting guidlines.

    You do read your policy and exclusions don't you?

    Wow, feels like I am at work and not floating sipping on a cold....
    Last edited by dukenyc; 08-10-2011 at 10:41 AM. Reason: clarity

  2. #2

    Originally Posted by Chris288 [/URL]
    Yeah, so if i supercharge my acura tl type s from 287 hp to 350 hp and crash it, my insurance is void ??

    Actually, in NYS, unless you have notified the company of the change, or had the car reinspected by the DOT and granted an exclusion, you can absolutely be refused coverage if excessive speed is a part in an accident, or if a fire occurs.
    Whether or not fraud was involved would revolve around the fact of if you knew the car was modified, and you agreed to the underwriting guidlines which dealt with a DOT/Factory performance data, and deliberately did not notify your insurance company.
    Kinda like now, if you follow up and read the links, or do as suggested and contact your insurance for their underwriting guidlines.

    Remember, you already agreed to them.

    Chris, what insurance company do you have?

    If you have any questions, i'll be glad to help you get in contact with them.

  3. #3
    Here is a link which just generally discusses the reasons most calims are not paid.

    Number 1 is modifications not declared to the insurer.

    If you guys give me the names of your insurance companies or brokers, I can pull up the specific clauses in their underwriting guidelines for you.

    I am glad to be able to help.

  4. #4
    Here is one more:

    I cut and pasted the relevant section to make it easier for guys to get into compliance:

    "Your car must be in its original state and should not have been modified from the manufacturer’s specification. Your car insurance company deals with the risk associated with your insured vehicle which it assesses with reference to the exact make, model and trim, then calculates an insurance premium based upon this (and other) factors. If your car has undergone changes the information they used as the basis of their assessment is inaccurate. If for instance the engine specification has been enhanced to increase the acceleration or top speed, your car could present a higher insurance risk, or if the bodywork has been amended, it may cost more to repair if making a claim. If your vehicle has been modified you need to consult your car insurance company with the exact modification to ensure they will accept the altered risk or find a specialist insurer."

  5. #5
    Quote Originally Posted by no_more_rice View Post
    I'm not worried about not being able to make a claim because I have a Riva speed module lol - the idiot insurance agents wouldn't have a clue, and I'd just pull it anyway
    But that would be fraud...

  6. #6
    Quote Originally Posted by no_more_rice View Post
    I'm not worried about not being able to make a claim because I have a Riva speed module lol - the idiot insurance agents wouldn't have a clue, and I'd just pull it anyway
    Rice, in accidents which result in large insurance liability, ie when someone is injured, the companies frequently have an engineer inspect the vehicle to try and find cause and to mitigate liability.

    Who is your insurer? I can pull up their underwriting guidlines for you.

    BTW, I assume you were joking above, because no one in their right mind would post on a public forum their intention to defraud an insurance company...

  7. #7
    I think you are forgetting about liability in the event of an accident.

    Did you read the above links?

    I guess they are mostly for river runner and chris288, since they asked for the information.

  8. #8
    Rice, which insurance company is that?

  9. #9
    I am familiar with Markel, glad to see they have worked out for you.

    This thread was really to help out riverrunner, he seemed so full of questions.

    Yet he hasn't chimed back in, hmmm....

  10. #10
    Quote Originally Posted by dukenyc View Post
    But that would be fraud...
    I agree with many of your warnings. Lying about horsepower and custom performance modifications on insurance application is bad idea and can even be a crime. But, in this specific example I say not "fraud" unless he is specifically asked did you modify the ski in any way and he lies in his answer. No fraud if question never asked.

    I dont say its right or bright, just not fraud as term is often defined under state law. However, some states, including WA, have laws that allow insurer to deny coverage if they prove a lie from insured during investigation of claim AFTER the accident. Its a special rule because normally, no one can "rely" on a lie they never heard. Its why in WA an insurer can deny a $250,000.00 house fire claim if it proves insured lied about the existence of just one $5,000.00 property item. Of course, if the insurer denies coverage wrongfully, then it can be sued for "bad faith." Both rules are intended to promote honesty and fair dealing in relationship between insurer and insured.

Page 1 of 5 123 ... LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Who are you using for Insurance
    By Laxcrazy23 in forum Jersey Riders
    Replies: 21
    Last Post: 09-04-2011, 10:14 AM
  2. best insurance in ny?
    By official_style in forum Kawasaki PWC Performance (4-stroke)
    Replies: 8
    Last Post: 11-12-2009, 11:26 AM
    By 08255 in forum Sea Doo Open Discussion
    Replies: 81
    Last Post: 04-01-2008, 02:29 PM
  4. Insurance
    By CJB213 in forum Yamaha Old School Skis
    Replies: 9
    Last Post: 03-30-2008, 10:05 AM
  5. insurance
    By emnuke123 in forum Yamaha Open Discussion
    Replies: 10
    Last Post: 02-19-2008, 07:39 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts