Deny Claim Because of Hobby?

[midlifecrisis]

I was rear ended by an uninsured motorist, no question to anyone that it was the other driver's fault. My uninsured motorist coverage should cover the damage to my car. I've had no tickets in the past 10 years, no claims since being rear ended in 1978...not my fault btw. I have done some simple modifications to the car. Limited to aftermarket shocks and springs, exhaust and intake to my 1990 car. I do participate in timed events with a local car club. I don't expect coverage at these events. However, as I anticpate a settlement in the next few weeks. I'm curious, can they deny coverage to my accident? I understand the underwriter may have found my discussions of my timed events online. They also might simply cancel my policy. Any thoughts?

 

[Josh]

Did you read your policy? Probably not, but odds are you're covered. Yes, they might cancel your policy, but they might just pay it.

Did you tell the carrier about the mods when you got the policy?

I would guess you're worrying over nothing unless you make it an issue. Might be a good time to read your policy too.

 

[rousemark]

Been so long since I have been in P&C, I can't really answer your question but I would think as long as eh car is street legal and the accident wasn't the result of competition, you shouldn't have any problem.

The fact you have been rear ended twice, reminded me of an agent in Cleveland, TN whose wife was rear ended three times in a short period of time. As soon as he got the car fixed and she got back on the road, she would get hit again. He rode with her one day and found out what the problem was.. She was not used to driving a four speed and when she would try to shift from 3rd to 4th, she would jam the thing into 2nd gear and of course the thing would stand on its nose without any warning to the car behind her.

 

[midlifecrisis]

Been so long since I have been in P&C, I can't really answer your question but I would think as long as eh car is street legal and the accident wasn't the result of competition, you shouldn't have any problem.

The fact you have been rear ended twice, reminded me of an agent in Cleveland, TN whose wife was rear ended three times in a short period of time. As soon as he got the car fixed and she got back on the road, she would get hit again. He rode with her one day and found out what the problem was.. She was not used to driving a four speed and when she would try to shift from 3rd to 4th, she would jam the thing into 2nd gear and of course the thing would stand on its nose without any warning to the car behind her.

THAT is funny! Thanks for your response
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Did you read your policy? Probably not, but odds are you're covered. Yes, they might cancel your policy, but they might just pay it.

Did you tell the carrier about the mods when you got the policy?

I would guess you're worrying over nothing unless you make it an issue. Might be a good time to read your policy too.

I just re-read my policy, it talks about not covering damage while preparing or participating in racing events. I assumed that. But the accident happenend on a highway, and I wasn't racing. These upgrades aren't as exotic as they sound really...and I'm not really looking to recover the value of the parts I've upgraded. I wouldn't see getting much if any of that back if I sold the car. Also the car is most likely totalled.

I found it rather sad that the uninsured guy gave me bad information. (yeah, I'm a sucker) I spent 2 days online and was able to find him through his ex-wife, that was MORE than happy to share his personal contact info. I suppose my insurance company isn't obliged to do this. However I supplied the info to them. The underwriter was more than happy to find my name online on forums where I discussed my exhaust changes. I guess that's enough to cancel my policy. I suppose it would be ironic to him that I volunteer to teach Teen Driving Safety classes twice a year.

 

[GeminiGroup]

I don't think your upgrades will be as much of an issue.It's an old car (1990) I doubt the "value" they'll pay you for will be affected because you had 'extras' on the car.....you just won't be credited any 'extra' money for them either.

We're talking about a 12 y.o. car here, they may cut you a check and cut you loose but I wouldn't understand why their loss-ratio is fine on you.
You paid for 12 years, the car is gone your rates will be higher on the new car you buy.....what's not to like?

 

[somarco]

We're talking about a 12 y.o. car here,

The car may be 12 yrs old in your state but in my state it is 22 yrs old.

 

[djs]

If the other driver is at fault (sounds like it), they will pay the claim if he has coverages. If not, if you have the proper coverages on your policy, they will pay the claim.

Here is the problem I see. You said:

My uninsured motorist coverage should cover the damage to my car.

Just so you know, uninsured motorist liability will NOT cover your damage. Assuming the other person was uninsured, which is the only time uninsured motorist coverage comes into play, and you had uninsured motorist property damage coverage, then yes, it probably would.

Here is the thing I would tell my client about when I get this phone call though. Its really about expectations. A 1990 car, not even knowing what kind it is, simply is not worth a lot of money. If its totaled, they will pay based on the fair market value of the car, not the value you may feel your car is worth because you just put a new motor in it, a new transmission, had whatever done. All of those factors go into the condition of the car when they give it a value, but in the end, they are valuing a 1990 car. Go online and see what that car sells is listed for, realizing people buying them want a better deal than what the person selling it wants.

This is of course, unless you have a stated value policy to protect the actual value of the car.

Dan

 

[midlifecrisis]

Thanks guys,

This all makes sense. As I understand it, my state requires a minimum of property and liabilty ininsured motorist coverage. I've got that of course.

And yes, I expect to get a maybe 10% less than the local used car dealers are asking for a nice version of my car within 30 miles or so. If it is lower than the research I've discovered, I understand I can ask for the data and actually see and compare my car to those they've used for their valuation?

Maybe because it's an old car the methods to determine value to us "civilians" is different from you folks in the industry. NADA and Autotrader ads, seem consistant, but the KBB is about 10% of the other's data. (not 10% lower, 10 PERCENT)

You folks use the CCC folks to determine value yes?

All this fuss over an 22 year old car...I know...

 

[ksigmtsu]

I believe even your modifications would have been covered if you had full coverage, had they been reported to the insurance company when writing the policy.

Since in this case it's not your insurance that is going to be paying the claim, they should be covered because the other vehicles liability insurance is the one responsible for the claim.

 

[djs]

Thanks guys,

This all makes sense. As I understand it, my state requires a minimum of property and liabilty ininsured motorist coverage. I've got that of course.

And yes, I expect to get a maybe 10% less than the local used car dealers are asking for a nice version of my car within 30 miles or so. If it is lower than the research I've discovered, I understand I can ask for the data and actually see and compare my car to those they've used for their valuation?

Maybe because it's an old car the methods to determine value to us "civilians" is different from you folks in the industry. NADA and Autotrader ads, seem consistant, but the KBB is about 10% of the other's data. (not 10% lower, 10 PERCENT)

You folks use the CCC folks to determine value yes?

All this fuss over an 22 year old car...I know...

If they total the car, they usually provide you a copy of the valuation report and how they came up with the value. You get a chance to review this, if appropriate, dispute it, whatever. Not sure about Oregon, but usually companies try to find recent similar sales in the area (not advertised prices, if possible) and then make adjustments as appropriate. Anything online works to get you in the ballpark, but won't get you an actual price.

For instance, something like Autotrader is pretty useless since there aren't many 22 year old cars sold in it, unless they are customized or the owner feels they are worth much more than the going rate for that car. For instance, I have a pretty nice 1990 Toyota Camry that I bought a few years ago for $800. I bought it for the kids to drive. Its a solid car, just isn't worth that much. If it was totalled, I would get MAYBE $1000 tops for it, even though I paid $800 and probably have $1000 in repairs into it.

Your insurance will pay if you have collision coverage or if the other driver is uninsured and you have UMPD coverage. Property damage coverage on your policy will not pay for your car.

The other drivers policy will pay for your car under their property damage coverage. You probably need to file the claim with them.

Dan