Car insurance curious question?
by Author on Thursday, March 17th, 2011 | 4 Comments
On today i went to a car show in my area and when i was out their i seen alot of nice old school. As i was looking, i went to talk to a guy. he said invested 20,000 in his 89 chevy caprice. It had the Portable tvs, brand new engine and so on.. Then i was like man what if you wreck you vehicle, the insurance not going to pay for all that, besides you can get much for a 21 yr old car. He was like since he got full coverage and he happen to get into a accident and the car is total, he said the insurance company will reimburse him half of the money back on what he spent on the car. Is this true?
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When you apply for car insurance, you are always asked if any modifications were made to the vehicle. If you claim that you had invested over 20,000$ into the car, then that 21 year old clunker is suddenly worth a lot more and consequently your premiums will also increase dramatically. Full coverage will only cover what you have indicated to the insurance company. Let’s say that you decide to not claim all the upgrades and you happen to get into an accident. If the insurance companies find out that you have been dishonest about the upgrades, not only will they not cover the true value of the car, but you can also be charged with perjury.
No it’s not true. Unless it’s specified in the policy he’d be lucky to get 10% of that back. I hope his policy clearly states what they’re paying or else he’s in for a very, VERY rude awakening.
they have a thing called classic or antique car insurance. you have to declare a value and take pictures of the vehicle and give other info to the company. i have this insurance on my 66 mustang and the declared value is 10,000. these people believe that you will take good care of your vehicle and will not drive it very often and that reduces the risk of an accident. [less exposure] it is dirt cheap, 100 bucks a year for full coverage. don’t believe me, start Googling. remember, you have to meet their guide lines, abide by the policy, and sign on the dotted line.
Nope. A car is insured by the condition/value it was in the day you insure it. Some companies will allow up to $1500. additional coverage as a customer service, but it’s at their discretion.
If you start adding items to your vehicle it’s best to get a rider attached to your policy to cover them, and yes you will pay more.
Classic and antique coverages are often very specific as to when and where you can drive the vehicle.
Too many times I’d have kids throw a fit when they boinked their "race car" and find out that the insurance company wasn’t going to cover all the stuff they did to them. And they could have 20 grand in mods done, but since the car was an older low line car all they got out of the settlement was book value in a stock unmodified condition.
A note on that, if you messed up on your coverage, and you total your car, most insurance companies will allow you to remove the custom items. As long as you reinstall the stock ones.