Posting this for the person who is organizing the action. Please take the time to read this and reply to this thread, or to Trevor directly, as this affects ALL of us,
***********
Hello all,
There seems to be a big crackdown from the non-regulated insurance companies across Canada on people who have "modified" cars.
There have been several cases I have read about where people have gotten into accidents and have had their insurance company literally and "legally" walk away from them forcing them to cover all costs incurred due to the accident.
There is a clause in the ONTARIO AUTOMOBILE POLICY that states:
Material Change in Risk
1. (1) The insured named in this contract shall promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within the insured's knowledge.
(2) Without restricting the generality of the foregoing, the
words "change in the risk material to the contract" include:
(a) any change in the insurable interest of the insured named in this contract in the automobile by sale, assignment or otherwise, except through change of title by succession, death or proceedings under the
Bankruptcy and Insolvency Act (Canada); and, in respect of insurance against loss or damage to the automobile,
(b) any mortgage, lien or encumbrance affecting the automobile after the application for this contract;
© any other insurance of the same interest, whether valid or not, covering loss or damage insured by this contract or any portion thereof.
This, in the insurance companies view, means that ANY modifications done to the car that falls in the following categories must be FULLY DISCLOSED TO THE INSURANCE COMPANY or else you are in breach of contract and will NOT be covered in the event of a claim:
Contours changed in any significant fashion from manufacturer's design.
Center of gravity/normal body "level" has been materially changed.
Equipped with non-standard accelerating devices or equipment designed for unusual performance, (ie nitrous oxide).
An engine NOT available from the manufacturer as a standard option for the year and model.
Extra-wide treaded tires designed and normally used for racing
Now here is the catch 22. If you disclose to your insurance company that you have a modified car, chances are VERY high they will not cover you AT ALL and will either deny your application for insurance, or terminate your existing policy as shown by a friend of mine:
Jettset Wrote:
State Farm called me today to say that they will no longer be insuring "modified" vehicles. I got a little nervous last year about the "full disclosure" thing and got my car appraised and went to my agent with it. At the time I fully expected to be dropped however my agent assured me I would be fine due to my excellent insurance and driving record. Well, I was fine until yesterday when they called me to drop my "modified" car
This is absolute BULLSHEET!!!!. They already took my money for coverage till June and now they give me 10days to find coverage and then their dropping my car. Although they won't drop my winter car or my house.
This is just absurd. Insurance companies are running amuck in Ontario and unless we do something to stop it everyone will be paying $5000 a year. No I see why over 40% of cars on the road in Ontario are driving with no insurance.
Now I have heard of two scenarios that make people say to themselves, "I'm not going to worry about it. I am fine." The first one being if you get into an accident, you just get a tow truck and take your car home, strip all the modified parts off it, and then call the insurance company. That is fine other than the fact it is illegal and also what happens if, God forbid, that you are seriously injured in the accident and are not able to do that. That means that the insurance company will not pay you out for injury, injury to third party or any damage!
The other scenario is that some people are taking legal action on the insurance company. Well in my opinion that is the best way of dealing with it, however, who has the financial resources to battle such a huge corporate giant?? Not me.
The only alternative that I can see that will cause enough of a ripple in the force, is to go to a big Association such as SEMA SAN and get their help, in the interest of the Aftermarket Industry and hobby, in battling the insurance companies for us. THIS IS THE ONLY WAY WE CAN WIN AND STICK IT TO THE MAN!
Now here is what we need everyone to do! I have made contact with a senior official for Government & Public issues at SEMA SAN and they are VERY interested in what is happening here. What they need, is hard evidence of these mishaps with insurance companies. Letters, emails, legal cases etc. This way they can verify that this is in fact happening and then take action. If you have any such evidence PLEASE SEND IT TO ME AT [email protected] so that I can forward it to SEMA. SEMA is the largest supporter of the aftermarket Industry and Hobby in the world. They have the financial backing and invested interest to fight this battle for us. If you have ANY questions or concerns or any possible information that might help this cause, please send it to me!
I IMPLORE EVERYONE not to take the view of "my insurance broker said all my mods are fine." If that is the case PLEASE GET IT IN WRITING FROM THE INSURANCE AGENCY!! There have been several people that have been totally screwed by this mentality. IT IS YOUR RESPONSIBLITY TO MAKE SURE YOU ARE COVERED 100%. This is a very scary scenario, but a very real one.
Think about this. Hearsay is not admissible in court in many cases. If your broker says to you on the phone everything is fine, then you get into an accident and the insurance company says they are not covering you because you have a modified car, you HAVE NO CASE!
The fact is, they don't want to know if you have a modified car because if you do not disclose this information, they don't need to cover you in the event of a claim! And when you do tell them you have a modified car, they dump you! Don't laugh. Read P-51's posts on this thread Team Focaljet Insurance Thread.
We need to work together to battle this injustice. Currently our only alternative is to either drive stock cars, or to go with the Facility for insurance which will raise our rates anywhere from %100-%500!!!
There is so much at stake here. It isn't just our insurance coverage, it is the Aftermarket industry as well. There are billions of dollars spent every year on aftermarket products in Canada. There are thousands of jobs relating to the aftermarket industry in Canada. These could all be in jeopardy due to this BS with insurance companies.
Please if you have any evidence, info or concerns relating to this, or have any suggestions that might help please send me an email at [email protected]
Thanks,
Trevor Nuttall
http://www.momentummotorparts.com
***********
Hello all,
There seems to be a big crackdown from the non-regulated insurance companies across Canada on people who have "modified" cars.
There have been several cases I have read about where people have gotten into accidents and have had their insurance company literally and "legally" walk away from them forcing them to cover all costs incurred due to the accident.
There is a clause in the ONTARIO AUTOMOBILE POLICY that states:
Material Change in Risk
1. (1) The insured named in this contract shall promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within the insured's knowledge.
(2) Without restricting the generality of the foregoing, the
words "change in the risk material to the contract" include:
(a) any change in the insurable interest of the insured named in this contract in the automobile by sale, assignment or otherwise, except through change of title by succession, death or proceedings under the
Bankruptcy and Insolvency Act (Canada); and, in respect of insurance against loss or damage to the automobile,
(b) any mortgage, lien or encumbrance affecting the automobile after the application for this contract;
© any other insurance of the same interest, whether valid or not, covering loss or damage insured by this contract or any portion thereof.
This, in the insurance companies view, means that ANY modifications done to the car that falls in the following categories must be FULLY DISCLOSED TO THE INSURANCE COMPANY or else you are in breach of contract and will NOT be covered in the event of a claim:
Contours changed in any significant fashion from manufacturer's design.
Center of gravity/normal body "level" has been materially changed.
Equipped with non-standard accelerating devices or equipment designed for unusual performance, (ie nitrous oxide).
An engine NOT available from the manufacturer as a standard option for the year and model.
Extra-wide treaded tires designed and normally used for racing
Now here is the catch 22. If you disclose to your insurance company that you have a modified car, chances are VERY high they will not cover you AT ALL and will either deny your application for insurance, or terminate your existing policy as shown by a friend of mine:
Jettset Wrote:
State Farm called me today to say that they will no longer be insuring "modified" vehicles. I got a little nervous last year about the "full disclosure" thing and got my car appraised and went to my agent with it. At the time I fully expected to be dropped however my agent assured me I would be fine due to my excellent insurance and driving record. Well, I was fine until yesterday when they called me to drop my "modified" car
This is absolute BULLSHEET!!!!. They already took my money for coverage till June and now they give me 10days to find coverage and then their dropping my car. Although they won't drop my winter car or my house.
This is just absurd. Insurance companies are running amuck in Ontario and unless we do something to stop it everyone will be paying $5000 a year. No I see why over 40% of cars on the road in Ontario are driving with no insurance.
Now I have heard of two scenarios that make people say to themselves, "I'm not going to worry about it. I am fine." The first one being if you get into an accident, you just get a tow truck and take your car home, strip all the modified parts off it, and then call the insurance company. That is fine other than the fact it is illegal and also what happens if, God forbid, that you are seriously injured in the accident and are not able to do that. That means that the insurance company will not pay you out for injury, injury to third party or any damage!
The other scenario is that some people are taking legal action on the insurance company. Well in my opinion that is the best way of dealing with it, however, who has the financial resources to battle such a huge corporate giant?? Not me.
The only alternative that I can see that will cause enough of a ripple in the force, is to go to a big Association such as SEMA SAN and get their help, in the interest of the Aftermarket Industry and hobby, in battling the insurance companies for us. THIS IS THE ONLY WAY WE CAN WIN AND STICK IT TO THE MAN!
Now here is what we need everyone to do! I have made contact with a senior official for Government & Public issues at SEMA SAN and they are VERY interested in what is happening here. What they need, is hard evidence of these mishaps with insurance companies. Letters, emails, legal cases etc. This way they can verify that this is in fact happening and then take action. If you have any such evidence PLEASE SEND IT TO ME AT [email protected] so that I can forward it to SEMA. SEMA is the largest supporter of the aftermarket Industry and Hobby in the world. They have the financial backing and invested interest to fight this battle for us. If you have ANY questions or concerns or any possible information that might help this cause, please send it to me!
I IMPLORE EVERYONE not to take the view of "my insurance broker said all my mods are fine." If that is the case PLEASE GET IT IN WRITING FROM THE INSURANCE AGENCY!! There have been several people that have been totally screwed by this mentality. IT IS YOUR RESPONSIBLITY TO MAKE SURE YOU ARE COVERED 100%. This is a very scary scenario, but a very real one.
Think about this. Hearsay is not admissible in court in many cases. If your broker says to you on the phone everything is fine, then you get into an accident and the insurance company says they are not covering you because you have a modified car, you HAVE NO CASE!
The fact is, they don't want to know if you have a modified car because if you do not disclose this information, they don't need to cover you in the event of a claim! And when you do tell them you have a modified car, they dump you! Don't laugh. Read P-51's posts on this thread Team Focaljet Insurance Thread.
We need to work together to battle this injustice. Currently our only alternative is to either drive stock cars, or to go with the Facility for insurance which will raise our rates anywhere from %100-%500!!!
There is so much at stake here. It isn't just our insurance coverage, it is the Aftermarket industry as well. There are billions of dollars spent every year on aftermarket products in Canada. There are thousands of jobs relating to the aftermarket industry in Canada. These could all be in jeopardy due to this BS with insurance companies.
Please if you have any evidence, info or concerns relating to this, or have any suggestions that might help please send me an email at [email protected]
Thanks,
Trevor Nuttall
http://www.momentummotorparts.com
