YACIT (Insurance-related): I am thinking about re-building a car, but how does insurance pay off on re-builds?

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Frosty3799

Diamond Member
Nov 4, 2000
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My plan is to buy a 1992-1995 Civic, and re-build it engine up.

Only thing is, let say I were to get in a car accident, would the insurance company only give me the blue book value of the frame (i.e. odometer reading), the blue book of the engine (30,000 or whatever the engine has), or would they use another figure for it.

Anyone know these things? Or anyone work in insurance?

Thanks for the input :)

EDIT: for the curious I posted what I am doing with the car below. Note, it is just a start to get a vehicle running and reliable for me
 
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TerryMathews

Lifer
Oct 9, 1999
11,464
2
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Insurance is going to pay out the value of what they know is in the car. Problem is, your insurance is going to be based on the value of the car. So either you take the cheap way out and don't tell them about that turbo to keep your monthlies low, or play it safe and tell them so that if your car is ripped off, you'll get that $10k worth of turbo gear back.

EDIT: AFAIK every state allows for experimental, custom, or kit cars as long as they meet emissions and safety requirements. Your insurance provider should be able to handle it. How do you think dune buggies are street legal?
 
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Frosty3799

Diamond Member
Nov 4, 2000
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Originally posted by: MercenaryForHire
Beats me, but I'd like to hear your plans for under the hood. :D

- M4H
Click to expand...

Haha... aight. This stuff is just for starters, will be buying/putting together within next few months hopefully. Here goes:

Engine: B16a SIR2 Link
Shocks: KYB AGX
Springs: Eibach Sportline
Strut Bars: (not sure which yet) Link
Rims: Rota Slipstreams Link
Tires: FK451 Link
Intake: AEM Cold Air Link
Headers: DC Sports Headers Link
Exhaust: HP Racing cannon catback (first link I found) Link

Its a good start...
 
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Frosty3799

Diamond Member
Nov 4, 2000
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Originally posted by: MercenaryForHire
Originally posted by: Frosty3799
Engine: B16a SIR2 Link
Click to expand...

That's all I needed to see. Thank you for not saying "I'm gonna get a stock engine and bolt on I/H/E for +50HP y0" :D

- M4H
Click to expand...

Hah... gotta start good to be good.
 
R

Red

Diamond Member
Aug 22, 2002
3,704
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Originally posted by: Frosty3799
Originally posted by: Frosty3799
Soo... anyone work in car insurance?
Click to expand...
Click to expand...

AFAIK, you can tell your insurance company you want to insure your car for "X", and anything higher than the blue book will raise your premium.
 
NutBucket

NutBucket

Lifer
Aug 30, 2000
27,131
616
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It totally depends on insurance. Take the car in my sig. Worth a lot more then bluebook. My insurance company does market value as far as the car itself. I also purchased an additional $3k in "additional equipment" coverage while covers all the other stuff on the car; motor, suspension, wheels, etc. I have documentation of all of it (pictures and/or receipts) and that's what's required should I ever need to make a claim.
 
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Dracos

Senior member
Jun 10, 2001
637
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Wish I had the funds to change the engine in my 89 Accord for a little more power. Stock engine plus steep hills don't mix...
 
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SoyBoy004

Golden Member
Oct 23, 2000
1,768
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I work for an insurance company as an adjuster so i should be able to help you out. As far as your car totalling, you will generally get what the car is worth at market value, of course adding/subtracting value with pre-existing, preloss damage. When rebuilding the engine, you can claim that the engine is rebuilt (which it is) but you will not get anything close to the value that you put into it. Basically, the items you are claiming are aftermarket, (not sure about the engine since it is honda, but not the original), and since these parts are aftermarket, you would have to add it into your policy to get coverage on them, otherwise its bone stock to you if an aftermarket part were damaged. when adding the vehicle to your policy, you can say you have all these items, but that just invites the insurance company to charge an arm and leg in your premiums because you are using aftermarket parts on your vehicle. what the insurance company WILL pay is what they can collect from you.
 
NutBucket

NutBucket

Lifer
Aug 30, 2000
27,131
616
126
Originally posted by: SoyBoy004
I work for an insurance company as an adjuster so i should be able to help you out. As far as your car totalling, you will generally get what the car is worth at market value, of course adding/subtracting value with pre-existing, preloss damage. When rebuilding the engine, you can claim that the engine is rebuilt (which it is) but you will not get anything close to the value that you put into it. Basically, the items you are claiming are aftermarket, (not sure about the engine since it is honda, but not the original), and since these parts are aftermarket, you would have to add it into your policy to get coverage on them, otherwise its bone stock to you if an aftermarket part were damaged. when adding the vehicle to your policy, you can say you have all these items, but that just invites the insurance company to charge an arm and leg in your premiums because you are using aftermarket parts on your vehicle. what the insurance company WILL pay is what they can collect from you.
Click to expand...

So what do you make of my additional equipment coverage? Am I going to get that back out should something happen?
 
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SoyBoy004

Golden Member
Oct 23, 2000
1,768
0
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Originally posted by: NutBucket
Originally posted by: SoyBoy004
I work for an insurance company as an adjuster so i should be able to help you out. As far as your car totalling, you will generally get what the car is worth at market value, of course adding/subtracting value with pre-existing, preloss damage. When rebuilding the engine, you can claim that the engine is rebuilt (which it is) but you will not get anything close to the value that you put into it. Basically, the items you are claiming are aftermarket, (not sure about the engine since it is honda, but not the original), and since these parts are aftermarket, you would have to add it into your policy to get coverage on them, otherwise its bone stock to you if an aftermarket part were damaged. when adding the vehicle to your policy, you can say you have all these items, but that just invites the insurance company to charge an arm and leg in your premiums because you are using aftermarket parts on your vehicle. what the insurance company WILL pay is what they can collect from you.
Click to expand...

So what do you make of my additional equipment coverage? Am I going to get that back out should something happen?
Click to expand...

Depends on how much your additional equipment coverage is for. I know there are different levels out there and some insurance companies have a max in which it will cover, ie $2500 or $1000, etc. We've seen some claims with over $10,000 worth of "additional equipment" that was claimed "stolen" and that just doesn't fly sometimes.

 
Toasthead

Toasthead

Diamond Member
Aug 27, 2001
6,621
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I had a friend who restored old cars and when he was done he would get them appraised and the insurance was based of the appraised value of the car
 
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SoyBoy004

Golden Member
Oct 23, 2000
1,768
0
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Originally posted by: Toasthead
I had a friend who restored old cars and when he was done he would get them appraised and the insurance was based of the appraised value of the car
Click to expand...

"classics" can qualify for this. its what the cars go for in the local market.
 
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