Insuring your Rig

loki_racer

loki_racer

Well-Known Member
Joined
Sep 7, 2005
Location
Pittsburgh, PA
I wanted to share a little information I have gathered from a coworker about insuring vehicles with modifications. I happen to work in the insurance industry (property/casualty, not health) and my coworker is just about the smartest joker there is when it comes to insurance questions. He happens to live in NC and gave me some specific information.

I've asked my insurance company, USAA, every time I renew my policy if my modifications to my XJ are covered. Every time they say yes, that I must just keep my receipts and maybe some photos of the modifications.

So I asked my coworker if this is true. Here is his response:

Modifications outside of standard equipment are generally not covered by the personal auto policy (PAP); even with receipts, photos, etc. Here is some of the wording from ISO's PAP that might apply to your situation:
We will not pay for:

2. Damage due and confined to:
a. Wear and tear;
b. Freezing;
c. Mechanical or electrical breakdown or failure; or
d. Road damage to tires.
This Exclusion (2.) does not apply if the damage results from the total theft of "your covered auto" or any "non-owned auto".

4. Loss to any electronic equipment that reproduces, receives or transmits audio, visual or data signals. This includes but is not limited to:
a. Radios and stereos;
b. Tape decks;
c. Compact disk systems;
d. Navigation systems;
e. Internet access systems;
f. Personal computers;
g. Video entertainment systems;
h. Telephones;
i. Televisions;
j. Two-way mobile radios;
k. Scanners; or
l. Citizens band radios.
This Exclusion (4.) does not apply to electronic equipment that is permanently installed in "your covered auto" or any "non-owned auto".
5. Loss to tapes, records, disks or other media used with equipment described in Exclusion 4.

7. Loss to:
a . A "trailer", camper body, or motor home, which is not shown in the Declarations; or
b. Facilities or equipment used with such "trailer", camper body or motor home. Facilities or equipment include but are not limited to:
(1) Cooking, dining, plumbing or refrigeration facilities;
(2) Awnings or cabanas; or
(3) Any other facilities or equipment used with a "trailer", camper body, or motor home.

9. Loss to equipment designed or used for the detection or location of radar or laser.
10. Loss to any custom furnishings or equipment in or upon any pickup or van. Custom furnishings or equipment include but are not limited to:
a. Special carpeting or insulation;
b. Furniture or bars;
c. Height-extending roofs; or
d. Custom murals, paintings or other decals or graphics.
This Exclusion (10.) does not apply to a cap, cover or bedliner in or upon any "your covered auto" which is a pickup.

12. Loss to "your covered auto" or any "non-owned auto", located inside a facility designed for racing, for the purpose of:
a. Competing in; or
b. Practicing or preparing for;
any prearranged or organized racing or speed contest.


Note that I highlighted in exclusion 10 "but not limited to...." Pretty much any customizing equipment will be included in this. Also, the insurance carrier is only going to pay actual cash value (ACV) regardless what you paid for the equipment. This is the depreciated value based on age, use, and condition of the vehicle and equipment.

There is an endorsement to include customizing equipment. In NC (if that's where your auto is still insured), it's the NC 03 15 Coverage for Damage to Your Auto - Customizing Equipment Coverage / Coverage for Audio, Visual and Data Electronic Equipment. In the endorsement you list the vehicle and a coverage limit for the customizing equipment.

Hope this helps.
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ECORS fellows should take note of #12 if they expect to use PAP insurance for their rigs.

Everyone else should take note of #10. Of course this is just from one insurance company's policies, but it's probably industry standard.

Anyways, hope this helps someone cover their rears.
 
Who the fawk carries insurance on their rig?

I've got liability so I can drive it on the street. If I were worried about it getting stolen, I'd go for a stated-value policy. Anything else is on me.
 
aimages.sporttruck.com_eventcoverage_0709st_12_z_2Bgator_drag_2007_2Blifted_cadillac_escalade.jpg
 
^^^I'd insure that just in the hopes of someone stealing it to be rid of it.
 
Try insuring a custom built tube buggy used in race operations.

Last quote I managed to get was more per year than it would cost to build.
 
fwiw i carry coverage on my rig and have submitted photos, receipts and parts list to the insurance company. i pay a premium specifically for permanently installed aftermarket equipment up to $12k. this is in addition to the normal coverage for the blue book value of the vehicle. i have had one claim and the insurance company paid for what repairs the body shop could do and I allowed them to do and cut me a check for the custom work i had to redo myself. total price of coverage for my rig is less than 1k a year, but its worth it. covers fire, theft, natural disaster, and user error.

edit....you can get coverage for whatever you want. my advise....you just have to ask and you have to pay. get a couple of quotes and negotiate with the insurance company. my rig is not street legal or registered any longer. insurance company knows this and they list it as occasional off road farm use only vehicle.
 
houdini said:
fwiw i carry coverage on my rig and have submitted photos, receipts and parts list to the insurance company. i pay a premium specifically for permanently installed aftermarket equipment up to $12k. this is in addition to the normal coverage for the blue book value of the vehicle. i have had one claim and the insurance company paid for what repairs the body shop could do and I allowed them to do and cut me a check for the custom work i had to redo myself. total price of coverage for my rig is less than 1k a year, but its worth it. covers fire, theft, natural disaster, and user error.

edit....you can get coverage for whatever you want. my advise....you just have to ask and you have to pay. get a couple of quotes and negotiate with the insurance company. my rig is not street legal or registered any longer. insurance company knows this and they list it as occasional off road farm use only vehicle.
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What company is this? I have asked for a similar option with Nationwide, Erie and State Farm and all said "no way in hell".
I can't believe it includes "user error"... that could be anything o_O
 
I continue to try and find a stated value type policy for my rig with no luck. Theft & fire while parked is all I want, but it doesn't fit in anyone's neat little category for my usage. closest do far was American Collectors, but because design was offroad, they wouldn't cover it.

My greatest fear is for my garage to burn, and lose the buggy in the process.


Sent using Tapatalk - please excuse my brevity.
 
RatLabGuy said:
What company is this? I have asked for a similar option with Nationwide, Erie and State Farm and all said "no way in hell".
I can't believe it includes "user error"... that could be anything o_O
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Geico carried it for a few years. Now with Kemper. Kemper had a harder time understanding the unique type of vehicle and coverage i wanted but eventually found a way to cover it for me. It's not much if not any different than insuring any other powersports vehicle.

and as most of us do...i have a few vehicles. not sure if it weighs any with provider but i ensure all with the same provider and have umbrella coverage. makes it a nicer neater little package.

good luck!
 
Rich said:
I continue to try and find a stated value type policy for my rig with no luck. Theft & fire while parked is all I want, but it doesn't fit in anyone's neat little category for my usage. closest do far was American Collectors, but because design was offroad, they wouldn't cover it.

My greatest fear is for my garage to burn, and lose the buggy in the process.


Sent using Tapatalk - please excuse my brevity.
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would your homeowners not cover it if its on your property? if not your property then...renters insurance.
 
Homeowners will not cover a vehicle period from what I understand. Thats why they sell vehicle insurance. Unless you can prove you use it to maintain your property like a lawn mower or something.

I carry liability only even though my jeep never sees the road for th simple fact of hurting someone on the trail.
 
Ron said:
Try insuring a custom built tube buggy used in race operations.

Last quote I managed to get was more per year than it would cost to build.
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Ron, I think you can still get 'contents' insurance for your trailer. It is along the lines of what a truck driver has to be a contract hauler. It is rider than you pay per hundred of coverage. If it the rig is stolen from (or with the trailer) you are good. I used this tact on my drag car and equipment in the trailer. It was pretty affordable. Also, you might want to look at the custom car insurance guys like Haggerty. With 5k miles per year of driving and storage in a enclosed garage or trailer, our 57 Chevy is covered for 50k. I pay 830.00 per year. It has no exclusions other than flooding.
 
lockedup5 said:
Homeowners will not cover a vehicle period from what I understand. Thats why they sell vehicle insurance. Unless you can prove you use it to maintain your property like a lawn mower or something.


I found out that if you claim the rig to be a project that you are working on, homeowners does pay. A little tornado came through Locust some years ago and carried off my hard top for the 72 Blazer. They paid for the roof and shipping from California. It was rediculous how much that cost.:D
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I tried Haggarty with no luck, but maybe someone else will have better luck. They were fine with race cars, but seemed to have a problem with off road race cars.

Sent using Tapatalk - please excuse my brevity.
 
houdini said:
fwiw i carry coverage on my rig and have submitted photos, receipts and parts list to the insurance company. i pay a premium specifically for permanently installed aftermarket equipment up to $12k. this is in addition to the normal coverage for the blue book value of the vehicle. i have had one claim and the insurance company paid for what repairs the body shop could do and I allowed them to do and cut me a check for the custom work i had to redo myself. total price of coverage for my rig is less than 1k a year, but its worth it. covers fire, theft, natural disaster, and user error.

edit....you can get coverage for whatever you want. my advise....you just have to ask and you have to pay. get a couple of quotes and negotiate with the insurance company. my rig is not street legal or registered any longer. insurance company knows this and they list it as occasional off road farm use only vehicle.
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nctom said:
Ron, I think you can still get 'contents' insurance for your trailer. It is along the lines of what a truck driver has to be a contract hauler. It is rider than you pay per hundred of coverage. If it the rig is stolen from (or with the trailer) you are good. I used this tact on my drag car and equipment in the trailer. It was pretty affordable. Also, you might want to look at the custom car insurance guys like Haggerty. With 5k miles per year of driving and storage in a enclosed garage or trailer, our 57 Chevy is covered for 50k. I pay 830.00 per year. It has no exclusions other than flooding.
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This works fine....if you have a VIN. If its a custom ...your SOL....


Rich said:
I tried Haggarty with no luck, but maybe someone else will have better luck. They were fine with race cars, but seemed to have a problem with off road race cars.

Sent using Tapatalk - please excuse my brevity.
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Exact same experience I had.

I currently have it insured as an FJ...with questionable title. Ive done some progress but Id HATE to actually ahev to collect, I dont think ID ever get a check'
 
All these guys in the desert with 20 to 100 plus k buggies are getting it done. I will ask on the Locos Mocos board what the dealio is. Got a buddy that lost his full tilt prerunner (with no vin) to theft and he got paid. I will ask him too.
 
Thanks, Ben.
I just read that whole thread and the major points I picked up are...

~ Whats towed on the trailer and the trailer propper are not automaticaly covered by the truck's policy. Get a rider on the trailer and contents.
~ Have pictures, reciepts or get an appraisal done to document the ACV of your rig, trailer, and equipment. File it with the insurance co.
~ If your trailer is insured and you hit something with it, that is covered too.
~ Off road race cars cant be covered. Period. So if it gets stolen or burnt up, It is NOT a race car.;)
~ Offroad ONLY vehicles can be cheaply insured. Just like a 4 wheeler or snowmobile. No vin, and no "on road" legality.
~ They get antsy when the rig does both on and offroad duty. They will send it to the highest end of the rate scale to cover thier ass.
~ "4x4 Dunebuggies" can be covered by Progressive and State Farm.
~ State Farm pays claims better than most.
~ Just because your local agent or "Flo" on the phone say its covered, dont believe it. Read the policy and the doc page fine print. Talk to the underwriter at the company and ask direct questions that concern you. Create a email trail with him to document your concerns.
 
nctom said:
Thanks, Ben.
I just read that whole thread and the major points I picked up are...

~ Whats towed on the trailer and the trailer propper are not automaticaly covered by the truck's policy. Get a rider on the trailer and contents.
~ Have pictures, reciepts or get an appraisal done to document the ACV of your rig, trailer, and equipment. File it with the insurance co.
~ If your trailer is insured and you hit something with it, that is covered too.

~ Just because your local agent or "Flo" on the phone say its covered, dont believe it. Read the policy and the doc page fine print. Talk to the underwriter at the company and ask direct questions that concern you. Create a email trail with him to document your concerns.
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From what I have read, I would say these are mostly true. The biggest is the last one you stated. It sounds like there is no real solution unless you have a good agent that is willing to pay out to you, no matter what the policy states.

It does seam that it gets tricky when you explain what you want to do with it, or when they try to list it on/offroad. but most ahvent had any better luck listing it offroad only.
 
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