State Farm voids insurance on mods

[CFNSX]

I just received written notice from State Farm that voids insurance coverage on modified cars .....my agents comments are in the brackets.......
"Altered Vehicles- With the help of your buddies and a good mechanic, you've customized your car. Your car may be the envy of the neighborhood but it MAY NO LONGER BE INSURED. We DON'T provide coverage for such vehicles. Altered vehicles are those physically or mechanically altered in any of the following manners:
1) Contours changed in any significant fashion from manufacturers design (wide body kits, ground effects, custom bumpers, ect) 2) Centre of gravity/normal body 'level' has been materially changed (lowered suspensions) 3)Equipped with non-standard accelerating devices or equipment designed for unusual performance ie. nitrous oxide (turbo, superchargers, ect) 3)An engine NOT available from the manufacturer as a standard option for the year and model (modified motors including port &polish, modified heads, intakes, this area is a little grey ) 5) Extra-wide treaded tires designed and normally used for racing (this area is a little grey as well as the agent mentioned larger rim sizes plus materially wider rims and ultra high performance rubber that could be used both on the street or for track days)

" If your vehicle has been altered, you MUST notify your agent who can arrange for alternative coverage. "


Oh, the alternative coverage? find another insurer within 2 weeks as your insurance is cancelled. The other option is to return your car to 100% stock within 2wks.

I know at least one person who's had his insurance cancelled after he told State Farm about his mods which are a 1" lowering of the suspension on his Honda Civic.

 

[NetViper]

Screw State Farm. They just closed all their business in my town putting 1200 people out of work and killing 50 million dollars in payroll to this area.

 

[ChrisK]

I wonder if this is a new policy. I have State Farm and they were willing to cover a few damged aftermarket parts on my car in a fender bender I had with another car. At that time nobody seemed to care if the car was modified or not. They just wanted receipts of the non OEM parts before they would give money for it. I haven't gotten that letter yet, but if I do and they refuse to cover me I'll switch back to AIG.

 

[xsn]

This only affects Canada.

 

[sjs]

This only affects Canada.

I certainly hope that you are correct, and that they don't try something similar here in the future. Man, that is really harsh.

 

[Meeyatch1]

This is only in Canada for now. I know a guy that lowered his S2000 in Canada then got the notice that insurance companies were voiding claims on modified vehicles. Personally I think all this does is tick off people that already think the insurance industry is full of criminals. All this does is give them more reasons to believe.

 

[Ponyboy]

Whooaaa...if correct, this is quite a policy change by a major insurance corporation. I wonder if ins. cos are targeting the rice crowd with their massive amount of expensive mods (ie carbon fiber body, etc.)? Still that's got to be tiny portion of their total payout. Hmph.

Screw State Farm. They just closed all their business in my town putting 1200 people out of work and killing 50 million dollars in payroll to this area.

Saw that on the news last week. Sorry to hear about the loss. I'm sure you know they're coming to Tulsa - State Farm has said 1,000 jobs. So it's still a net loss on job production.

 

[comquat1]

I hope this doesn't trickle down to the USA. I've been with State Farm from the begining, and have had no issues with them whatsoever. From comprehensive claims from getting hit by a chunk of tire on the highway to coverage for non-timed driving events. I'm double checking everything once I pull my car out in the Spring though.