Modifications and Insurance

[Tortuga_imp]

I guess things are different in 'merica (and Pakistan).

Here you insure the bike and it is deemed to be bog standard as it led the factory.

Mess about with it, replace or upgrade any part, paint a naked lady on the tank and put some ape hangers on it, and you're not covered.

ALL MODIFICATIONS MUST BE REPORTED at which point the best you can hope for is a hike in premium, as well as bull crap admin charge. Most likely is a refusal of insurance and potential cancellation, leaving you to resort to the 'specialist / modified' companies who'll have your pants down by your ankles because they know nobody else will touch you.

[the Ferret]

Seems you and the Aussies are over regulated if you ask me

[Aussieflyer]

With only 17M cars and bikes registered australia we are a small market however vehicle modifications are very popular here in AU. There are at least three specialised insurance companies that I know of catering for the insurance needs of motoring enthusiasts. I think those companies are on a good thing as most motoring enthusuasts actually look after their vehicles, their modifications are an investment in their machine and most of the time these vehicles are not used as every day transport - the risk to the insurance company is reduced. Obviously an 18 year old with a highly modified vehicle presents a worse risk than a 58 year old veteran of highly modified vehicles so one would expect a difference in premiums but the good news is that you can get insurance cover to protect your investment. My own experience with my calssic car and my CB is that the insurance company and I discuss all the modifications/invetsments and agree the value. As a modified vehicle the value actually increases each year by a small amount and so does the premium. Given there are three companies, probably more, we can shop around when it's time to renew the policy. One thing I learned was to ask the very reputable repair and restiration shops as to which insurance companies they believed were the best. They are the guys who get crunched for a dollar on the repair jobs by the insurer so it's good to know which company has the best reputation for allowing a quality repair. Sorry mate that was a long winded response.

[Cormanus]

Seems you and the Aussies are over regulated if you ask me

Oh, mate ... a whole forum could be devoted to that debate! [url=http://media.photobucket.com/user/mosterv/media/Cute%20gifs%20emoticons/libra.gif.html]

[Aussie_imp]

According to my own comprehensive insurance policy, the modifications made must be accepted by the insurance company. In addition, they cannot be 'illegal', or not approved by the state transport authority.

The issue is that vehicles in Australia must comply with Australian Design Rules (ADRs) and if the vehicle is ridden/driven on a road and is in breach of these ADRs then an offence is committed such as 'failing to maintain vehicle standards' which normally results in a ticket and/or the vehicle being 'defected' and ordered off the road until the breaches are fixed and verified.

An example is the classic 'tail tidy' where the rear fender is basically removed. In Australia that is illegal. The ADRs state that a motorcycle needs a rear facing red reflector. Rear direction indicators need to be 180mm apart etc, so straight away you have all these ADR breaches just for a tail tidy. The bike is now illegally modified. Same with removing catalytic converters, putting on little clear LED blinkers, removing chain guards etc etc etc.

All these 'rules' are reasonably prescriptive, and allow for little deviation. Exhausts are another classic as most modern bikes need to be under 94 db at certain RPM, can't quite remember what it is.... The Staintune pipes are certified as road legal in Australia by the company and they send you a nice little compliance plate to stick on your bike...

Whether or not an insurance company would try to weasel out of a claim based upon minor 'cosmetic' mods or overly loud exhausts I do not know and would not even try to guess..anyone ever had any issues??

It also says that if anyone who rides my bike has had their licence cancelled or suspended in the 5 years previous is also not covered if they have a crash, so there are lots of little things in the fine print!

[Tyke57nz_imp]

IN NZ it is not compulsory to buy insurance, so technically as long any modifications comply with the annual testing regime the machine remains legal. From the NZ AA website - New Zealand already has a form of compulsory 'insurance' that covers the injuries caused by a vehicle accident. This is managed by the ACC and provides no-fault cover, meaning that any person injured as a result of an accident is covered. Motorists pay for this insurance through annual vehicle registration fees and also through a portion of the tax paid on every litre of fuel purchased.

In New Zealand there's no need for third party insurance to cover injuries because we already have a form of compulsory 'insurance' that covers injuries caused by a car accident. This scheme is managed by the Accident Compensation Corporation (ACC), and is partially funded by a levy paid as part of your motor vehicle registration fee and also by some of the tax you pay each time you fill your car with petrol. The scheme provides 'no-fault cover', meaning that any person injured as a result of an accident is covered.

However, holding insurance to cover the costs of causing damage to your own or another person's property is optional.

[Cormanus]

Australia also has compulsory third party insurance. At the time of registration the vehicle owner is required to have a Compulsory Third Party (CTP) policy. It covers personal injury caused by the vehicle/owner/driver in an accident. It's pretty comforting.

Comprehensive insurance, covering damage to property, including damage to your own vehicle, is optional and a good deal more expensive. It is the comprehensive policy that is likely to be affected by modifications.

[Aussie_imp]

Australia also has compulsory third party insurance. At the time of registration the vehicle owner is required to have a Compulsory Third Party (CTP) policy. It covers personal injury caused by the vehicle/owner/driver in an accident. It's pretty comforting.

Comprehensive insurance, covering damage to property, including damage to your own vehicle, is optional and a good deal more expensive. It is the comprehensive policy that is likely to be affected by modifications.

That's correct. And I've never actually heard of anyone getting knocked back on mods for a claim. Only things like being drunk or unlicensed.

[Cormanus]

I wonder how many people notify their insurer of mods?

[emptysea]

For all the companies I work with in the US, you do not have to provide a list of your modifications prior to a loss. You will have to provide documentation of the mods AFTER a loss. There is s very slim possibility that a company could deny a claim because you lied on the application about a material fact, such as having NOX, but the company would have to have a specific question on the application about the particular performance enhancement. They would not deny a claim because you have, say, $5000 in accessories, but only $3000 in coverage. Rather, they would simply pay the lower amount.

Incidentally, "accessories" are generally anything you bought for the bike that was not on the stock bike. Not a big problem for us, but if someone bought a used heavily modded HD, for example, he might not know what was a mod and what came on the bike. However, there is usually enough coverage for most things included in the policy.

Oh yeah...probably should have started by saying that I have been an insurance agent for 31 years.