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Senior Member
Join Date: Nov 2003
Location: Anonymous
Posts: 1,503
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In california, the Insurance companies only cover UP TO $1000 for aftermarket parts reguardless. I have only herd of people saying "If you tell them about it, they will cover it" but the only times I have herd that, its from people that dont know the difference between full coverage and liability.
I just read a new guidline from allstate yesterday that was stating that we only cover up to $1000 of aftermarket stuff and performance mods are not covered.
Their is no coverage if you get in an accident while racing. EVEN at a track.
I have yet to see a company that covers more than $1000 of aftermarket mods.
Quote:
Originally posted by Allstate Insurance Co. California
Overview of the Racing Exclusion
And Custom Parts Limit Endorsement
Introduction
Changes to the California Auto policy were released effective April 2002 for new policies, and with renewals for existing policies. The endorsement number is APC118-1 for Allstate Property and Casualty Insurance Company (AP&C) and AU2250-4 for Allstate Insurance Company (AIC) and Allstate Indemnity Company (AI). This information is intended to cover a broad overview of the changes that the endorsements provided to the California policy.
Racing Exclusion
Language was added or amended in the policy to exclude coverage for racing or speed contests. Coverage is excluded for:
bodily injury or property damage arising out of the participation in any prearranged, organized, or spontaneous:
a) racing contest;
b ) speed contest; or
c) use of an auto
at a track or course designed or used for racing or high performance driving, or in practice or preparation for any contest or use of this type.
The above exclusion was introduced in Part 1, (Automobile Liability Insurance, Bodily Injury Coverage AA and Property Damage, Coverage BB) of the AP&C Policy, (Endorsement APC118-1), and to Part 1 of the AIC and AI policies, (Endorsement AU2250-4).
A similar exclusion was added to all other sections of the policy.
loss or damage arising out of the participation in a prearranged, organized, or spontaneous:
a) racing contest;
b ) speed contest; or
c) use of an auto at a track or course designed or used for racing or high performance driving, or in practice or preparation for any contest or use of this type.
The difference between the two versions of the exclusion is that under Liability, only racing at a track is excluded. Under all other policy sections where this exclusion appears, racing is excluded both on a track, and on public roadways.
Custom Parts or Equipment
A definition has been added to Part 4 (Protection Against Loss to the Auto) of the AP & C policy, and part VII of the AIC, and AI policies:
Custom parts or equipment means equipment, devices, accessories, enhancements, and changes, other than those offered by the manufacturer of the auto specifically for that model, or installed by the dealership of the auto when new as part of the original sale, which alter the appearance or performance of an auto. This does not include items covered under Sound System Coverage.
This definition will not apply to custom paint. It will also not apply to modification to allow a disabled person to drive/ride in the vehicle.
To Part 4 (Protection Against Loss to the Auto) of the AP&C policy, and part VII of the AIC, AI policies, the following exclusion is added:
loss to any custom parts or equipment designed for racing which is installed in your insured auto. This includes, but is not limited to, nitrous oxide systems, roll cages, and air intake modifications.
Custom Parts Limit
The following limit has been added to the AP&C policy under part 4 of the policy, and part VIII of the AI, and AIC policies:
The maximum Allstate will pay for loss to any custom parts or equipment is $1000, unless otherwise excluded.
The intent of these changes is to limit our exposure to modified/customized parts or vehicles for which we are not collecting a premium. It is not our intent to limit or exclude people with disabilities.
This means that if the insured chooses to modify his/her vehicle with custom parts or equipment, as defined by the policy, our limit of liability is $1000.
The $1000 custom parts limit is over and above the cost settling the claim with OEM equivalent parts. The OEM equivalent part cost will be determined to be the cost of replacement with a new part or with another of like, kind and quality which includes recycled, salvage or used parts. This additional limit also does not change our policy obligation to only settle a claim based upon the cost to repair the damaged parts (OEM or custom parts or equipment) if repairing the part is determined to be appropriate repair procedure.
The following example should help to illustrate the effect of the new custom parts limit. The insured has a $250 deductible and a claim with damages totaling $4000 to return the vehicle to pre-accident condition. Of these damages, $3000 is custom parts which would have been $1000 in OEM equivalent parts. $1000 for other damages. The difference between the OEM equivalent and custom parts is $2000. The payment to the insured would be $3000 ($1000 other damages, $1000 OEM equivalent parts, $1000 limit for custom parts). The deductible was not waived. In a sense, the deductible is applied to the excess amount that is not covered.
Please note that the custom parts endorsement will not apply to policies that have been written with either the Exhibition Automobile Endorsement (AU10644 and APC115-2) or the Stated Amount Insurance Endorsement (APC114-2).
Training Guide
The complete California Amendatory Endorsement Training Guide, additional examples and FAQ’s of how the endorsements will be applied can be accessed by clicking on the above link where it will remain posted on the Product Management website.
As always, please refer any additional questions you regarding policy interpretation to your local MCO Agent Advocate.
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