zakimak

Yes you can get it BUT the issue is what would happen if you did not declare modification prior to a claim. First and foremost, I have yet seen an insurer's policy not mentioning the modification clause. There are policies however which allow you to be insured with the noted performance upgrades including cosmetics and non-performance parts (stereo systems for example) but with a premium must be paid. Some insurers are willing but many are not. REMEMBER, your agent is NOT your insurer. I have seen agents not clarifying what is covered and what is not because a) they want to sell the policy b) are really not informed enough about said policy c) incompetent. When **** hit the fan, they are not there to approve your claim. That portion goes to the adjuster and adjusters has many levels - all dependent on the value of the claim. (Death vs a minor fender bender aka $1Million plus vs $1000)

Insurer relies heavily on static risk factors to determine the insuree's risk that may include, age, location, marital status, type of vehicle, driving history, etc. In the past ethnicity was included but it is considered to be discrimetory and no risk assessment for insurance would be caught relying on that point these days. It is actually very predictable due to the data gathered. They cannot however predict individuality but they can place you in groups using this analogy; 'based on statistical analysis, Mr "X" fits into a category of "Y" drivers who has "Z" claim rate and this group would have an average claim of "T". The inference therefore is Mr. "X" has "Z" claim rate likely costing "T".

On the performance modification front, this is a BIG no no for insurer from their perspective, Modifications=faster speed=higher risk=higher claim rate= higher payout - to boil it down to simple terms. Based on that rationale, any modifications to a vehicle increase not only the value of the payout in the event of a claim but also the elevated risk for a claim.That said, many other aspects effects your risk factors hence premium. The bottom line though is that any performance modifications will result in placing you in the high risk category. Bare in mind there are many factors and not strictly relying on cost of replacement alone. For example, if you add a stereo, the risk for break-ins are increased since thefts are more common for aftermarket stereo than OEM. Although OEM replacements can be more expensive than that of aftermarket, the likely hood of an OEM theft is much lower when compare to an aftermarket one. As a result, based on historical data, the overall payout is less. That's why sometimes a 45 years old with at 430 ferrari is less expensive to insure than a 16 years old male with a 90 civic. Factors not entirely relying on the type of car but also the driver, risk, etc.

The question then; what about factory approved upgrades such as the Stillen S/C units? I can assure you although this upgrade might be factory approved with a 3 years 60,000 kms warranty coverage, it is not insurance approved unless noted. The process of deeming a car's level of insurability are initially based from car manufacturers' data and the Insurance Bureau's own assessment (crash testing/survival rate/damage in typical fender bender/theft rates, etc). Insurance company work out each individual level of cost based on what the factory offers. If however, no data is available at the time of assessment, the system usually relies on the next lower score. The system therefore is blind since it is prohibitively expensive to categorize every little trim level. That's why sometimes when a new high performance trim appears for a vehicle yet the insured rate remains the same. It's just that the system has not logged this new trim level....yet. Just because it is a dealer option doesn't mean it was a factory option. Insurance don't rely on variables particularly at the unpredictable dealer level.

"My friend modded honda was approved..why?"

It all comes down to money. If insurer has their way, they would denied every claim the moment they detect any sort of modification to the vehicle. However, they can only legally deny a claim unless it is proven that the mod resulted in the claim. Technically speaking, if you change your rims and tire, this is a modification and if it was proven that the tires or rim was the cause of the claim, the insurer can deny the claim. However, even in that event, denial is unlikely since the litigation efforts (cost) would not be worthwhile. In this instance, the likelyhood is payout but then cancellation of your insurance. Cancellation of insurance is a big flag in Ontario. If you have that on your record, you are in the highest risk category because often, the cause of cancellation is suspected insurance fraud.

Often adjuster would simply approve the claim when the modification is not so blantant and that the claim does not involve high payout and it was not the cause of the claim. Again, the majority of the time, settling the claim is more cost effective than denial as there is also an arbitration process when agreements cannot be reached (again cost). BTW - be prepare if a crash resulted in criminal charges (drinking and driving, dangerous driving, etc) denial is pretty much guaranteed

Bottomline is there are many variables but the best policy is to be upfront about the mods, pay the premium and enjoy knowing you are covered. The alternative might not be what you would like but the risk is up to you.