C6FirstVette

I started another thread about an email I received from GEICO>>>

It has come to our attention that some GEICO documentation previously indicated that physical damage coverage does not cover loss for custom options on an owned auto or would only cover such loss if the existence of those options was previously reported to us. This notice was sent in error to Virginia policyholders with private passenger type vehicles. In Virginia, the Personal Automobile Policy provides automatic coverage for custom equipment on private passenger type vehicles.

This lead to some interesting discussions within the thread so I decided to call GEICO just to clarify what exactly the email meant and coverage rate... well lets say the answer was interesting...EMAIL WAS SENT OUT IN ERROR AND WAS A TEST EMAIL THAT WAS ACCIDENTLY BROADCASTED WHEN WAS FOR INTERNAL [GEICO] USE.

Back to base one and here is what GEICO covers:
-Any mod or mods are not covered other than standard value for the OEM equivalent. Say you have a $1400 performance exhaust and is destroyed in an accident...what the OEM exhaust value is is what you will get in coverage.
-Any mod or mods having a value of over a $1000 and you have not declared those mods on your policy, then they are not covered other than at OEM values. This is a bit confusing relative to this first point...basically there is a $1000 additional coverage automatically in the standard policy and you might get additional coverage for small items that are damage or stolen. Please note MIGHT
-All mods (even a leather covered center console) must be declared and then this declaration goes to underwriting for determination of additional insurance coverage and of course additional $$$ for that coverage.
-Modded cars go into a different rating classification which I quite sure means higher premium costs
-Regardless of declaring mods and getting 'coverage' for such if car is stolen (and not recovered) or burns to the ground you will only get the value of the mods IF YOU HAVE DOCUMENTATION SUPPORTING THE COSTS FOR SAID MODS...otherwords a receipt or similar document.
-With the special mod coverage, for catastrophic events, the mod is covered at full value NOT $.20 or $.30 on the dollar type scenario

Sorry for the first midleading thread but it did get me thinking and thus researching further... so the games continue.
Michael

johnodrake

That is about what I would have expected....

AORoads

It's an insurance company, and it's GEICO. I expected just what you wrote in this second thread, Michael.

Walt White Coupe

I believe that's pretty much standard policy for all insurance companies. My experience with GEICO over 30 years has been very positive. Low rates and good service.

Back in Aug 2008 my full up 05 coupe was totaled by a lady running a red light. Luckily neither of us were injured. The car had 32,000 and was just out of warranty at 37 months.

The first thing the GEICO rep asked after "Was I hurt?" was do you have a repair shop that you would like us to take the car to? My choice. They made the experience as trouble free as I could imagine. I was able to pull a number of items off the car in the salvage lot, Gorilla locks, racing spoiler, billet grill and Z51 emblems. And I kept the clear top. Taking the racing spoiler reduced the value of the car by $90. I claimed the Corsa exhaust, center leather console, B&M short shift and got $500 added to value of the car. In the end I got $42K for the car including sales tax of around $2K. Ordered a new 09 also full up for an out of the door price (Les Stanford) for $54K tax included.
So, bottom line I drove the 05 for 3 years at cost of $12K and got a new 09 in return. Real life, real experience.

Thank you GEICO!!!

rdm1465

It's not just Geico. All the insurance companies out there do that as a normal business practices. Keep in mind, they are in the business for the money you give them, and not what they give you.
Think what will increase your insurance premiums, or if you will even be allowed to renew.

redzone

Say you put a FULL widebody kit on your vert....and while you're at it,you have a twin turbo system installed along with a set of $$$ 360 Forged wheels.....is it rational to think your insurance company is going to cover all your mods for the same premium someone with a bone stock car pays?

vetdude

Point? Someone has to pay for all the "uninsured motorists" out there, as well as those that have submitted false claims. You know the ones, the people with the bone stock Corvette that was stolen and now suddenly has a supercharger, custom paint, custom exhaust, custom wheels, etc. In the end, we all pay.

Wayne O

I didn't think there was any way what you stated in the first post could be correct...this makes more sense.

IMO the most important aspect is once you declare modifications (especially performance modifications) you will be re-rated and your premiums will increase astronomically. IMO if you mod your car be prepared to eat the cost of the modifications in the event of a loss. As for receiving full replacement value (for the modifications) versus receiving actual cash value (depreciated value) it's much like insuring scheduled property on your homeowner's insurance...you provide current appraisals for jewelry, fine arts, firearms, etc. and in the event of a loss, you are paid the full, appraised value for the item(s). Accordingly, you pay a hefty premium for scheduled property coverage.

I know many people are happy with GEICO. That said, a friend of mine used to insure his beater (1960s) pickup truck with GEICO. He was involved in a minor fender-bender and called GEICO to explore his options. He prefaced the call by saying he was not filing a claim...he was just calling for information. After talking with the GEICO rep he was told he was being re-rated and his premiums were being adjusted upwards because GEICO was now aware he had been involved in an accident. He's no longer with GEICO. The moral of the story is don't call your insurance company for anything but a major claim. If the other party is at-fault, don't involve your insurance company if at all possible...deal solely with the at-faut party's carrier.

C6FirstVette

I have had GEICO for YEARS and have had no problems with them and in fact our rates have been more than fair. I started this whole thread (actually two threads) based on receiving their email about mods...just strange such a significant email would have been broadcast incorrectly. Concerning coverage for mods...doing mods is a bit of a game relative to insurance and warranty policies and always have said that if you are conservative just don't mod. For me my C6 is out of warranty and I will get coverage on selected mods with GEICO or go with a specialty insurer such as American Collectors Insurance or Classic Collectors. Already working with them for the 1990 ZR-1 Vette since is very much in the 'collectors' catagory
Michale

danl72

All insurance companies are the same. This does not surprise me.

GCD1962

Exactly, it rates cars on being exactly as they came from the factory. If you don't declare the options you put on, why should it pay you for them. Also, they are in their right to charge more for options that lead them to think the car is being driven in a different manner than stock. This time I agree with the insurance co,

WAwatchnut

I seriously doubt they're assigning increased premiums because of what the modifications signify - just that the mods add value that needs to be covered. Otherwise, the warning would be that undeclared modifications could invalidate your entire claim (because you were a higher risk driver, and not declared), instead of that the mods aren't covered (because they exceed the expected valuation of the car)

I have no problem with the insurance company charging me more for the value of the aftermarket parts. I'd actually be worried if they didn't. When I pay my insurance premium, I want that premium based on the actual risk of loss. So when I'm insuring a $50k Corvette, I want them to base my payments off the costs of covering that $50k car. If someone adds $20k worth of accessories, their loss/risk factor is higher, and they should be paying more... otherwise, if the insurance company doesn't charge them more and they have to cover claims, they'll end up charging everyone else more.

It's the same with house coverage. The insurance companies plan for a certain amount of contents based on the value of the house. For those of us who have unusal contents in the house (jewelry, watches, etc), the riders cover the additional loss/risk of those items being in the house.

cclive

Geico buys radar guns for police depts that need them....I wouldn't go to Geico if Warren Buffet were the last billionaire on earth

GCD1962

Collector Insurers such as Hagerty and others charge a premium for modified cars. The regular companies would also want to know if someone increased the performance of a car from say 300 hp to 500 hp that in itself signifys a greater risk. I don't agree, but that's they way its done. Back in the late '60s, early '70s, the high HP (then) of the muscle cars drove insurance rates through the roof and basically killed the market (along with smog controls).

AORoads

True.

///DarkSide\\\

I have found that OEM Parts at "Retail Prices" are usually more $$$$ than what you could buy from the aftermarket. What does the "estimate" say? You take it from there...

If you have a supercharger that's busted, forgetaboutit.

ramrodw30

That why I rarely declare any extra stuff because the insurance to replace oem is always more than the aftermarket components cost. Thanks goes to GM and your friendly neighborhood dealer!



Doug

greengo

Geico was great till I had an accident an totaled my truck....they dropped me like a hot tamale!

They were great while I was paying them but when they had to pay me...ADIOS!

Now they are trying to get me to come back to them....Id rather pay more than deal with Geico

C5pilot

Doesn't work for No-Fault states such as PA. Here, it doesn't matter who's at fault, you can ONLY deal with YOUR insurance company.

The biggest problem with insurance companies, IMO, is they cave in too easily. They'd rather settle out of court by compensating the other party even if you have evidence they were at fault or broke the law etc. It's like when someone claims they fell on your sidewalk and sues you... they pay the claim no questions asked and raise your premiums.