How far will insurance cover your modified JeeP?

I wanted to put this out there for all to learn from my experience. I'm sure when all the dust settles I will have done some things well, some things OK, some not so well, and through it all- I will have learned from a very expensive experience.

I started with a new 08 JKUR. I had no idea where my build would take me but learned as I went. I ended up with front and rear bolt on CO's, 37" Nitto Trail Grapplers, plenty of skids and hardware to protect from some body damage. I beefed up the axles and drive train to where It would get me through some of the tough trails in Moab.

I had just picked up my rig from ORE in So Cal form having some of the last touches done on my long build list. I parked it on my trailer (first learning mistake through this experience-in hind sight, I should have pulled it off the trailer and pulled in in front of the trailer), and put the locks on the trailer. I had one on the tongue, and had just bought two more for each side of two wheels (through the two wheels on each side). I had pulled the trailer sideways through 3-4 parking spots and some of the staff form the hotel were parking in front of the trailer. I returned from a long day at Disneyland with the family to the hotel to discover my Jeep and trailer were gone!

The responding officer told me it had been more than six hours since anyone could say they had seen it and that it was over the boarder in Mexico.

I notified my insurance company and had to wait the 20 days in hopes of recovery before they would even talk to me about replacement. I was able to push that up to about 15 days. I just faxed over the 60 plus pages of receipts that I have for almost every mod I had done to the jeep. Now its a couple more days for them to evaluate and tell me what they are going to give me for it. I will post up the results and how it ends up, but I thought some might want to know what I have thought about so many times before.....what would happen if I lost/totaled the Jeep? What would insurance come through with? Learn with me....

Hoping for a smooth process for you. I couldn't even imagine the feeling of returning to an empty parking place.

Just curious, what insurance company do you have?

ERAUGrad04 said:

Hoping for a smooth process for you. I couldn't even imagine the feeling of returning to an empty parking place.

Just curious, what insurance company do you have?

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Thanks!! State Farm

Aspenkid said:

Thanks!! State Farm

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Well now you really have my ear. I actually switched to Stare Farm from Allstate due to their superior (supposed) aftermarket coverage.

Subscribed. Good luck with the claim and the stolen jeep part sucks of course

Hoping for the best for you Steve.

We have Allstate and they've always said anything that is bolted/welding on to the Jeep would be covered as long as we had receipts but I also know that the "sales" folks/representative doesn't make the decision, the underwriter does. I've heard where others were told to "not worry" from their sales agent only to learn that the underwriter made the decision to limit coverage or not cover add ons at all. I'm feeling in my situation that insurance will cover the monetary value of a 2014-15 JK but not the "add-on's/modifications" that we all know can cost far more than the vehicle value.

Some have said they have negotiated an increased "stated value" and as long as the premium reflects this increased value I'd feel better about it but even with email trails from my agent stating they will cover the increased modified replacement costs, I'm not very confident this would be the reality.

I really feel for you, I can't imagine the feelings, and second guessing you must have gone through. I'm sure everyone on this forum has some strong feelings about our Jeeps, and would be devastated if that happened to us. In the end, there are worse things to loose. Thank you for sharing your experience with us, hopefully it will help someone else. I hope the insurance does what it is paid to do, and it turns out well for you.

SaddleTramp said:

Hoping for the best for you Steve.

We have Allstate and they've always said anything that is bolted/welding on to the Jeep would be covered as long as we had receipts but I also know that the "sales" folks/representative doesn't make the decision, the underwriter does. I've heard where others were told to "not worry" from their sales agent only to learn that the underwriter made the decision to limit coverage or not cover add ons at all. I'm feeling in my situation that insurance will cover the monetary value of a 2014-15 JK but not the "add-on's/modifications" that we all know can cost far more than the vehicle value.

Some have said they have negotiated an increased "stated value" and as long as the premium reflects this increased value I'd feel better about it but even with email trails from my agent stating they will cover the increased modified replacement costs, I'm not very confident this would be the reality.

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I would caution you with Allstate. When I talked with my agent, I was told they will cover up to $1000 in aftermarket equipment. To verify this, I spoke with my sister and brother-in-law who both work as actuaries at Allstate's headquarters in Chicago. They confirmed the $1000 limit and told me when it comes to aftermarket coverage, Allstate sucks.

I was bummed switching from Allstate as they were a great company to deal with for 15 years, but I couldn't imagine being left high and dry if something bad happened to the Jeep.

ERAUGrad04 said:

I would caution you with Allstate. When I talked with my agent, I was told they will cover up to $1000 in aftermarket equipment. To verify this, I spoke with my sister and brother-in-law who both work as actuaries at Allstate's headquarters in Chicago. They confirmed the $1000 limit and told me when it comes to aftermarket coverage, Allstate sucks.

I was bummed switching from Allstate as they were a great company to deal with for 15 years, but I couldn't imagine being left high and dry if something bad happened to the Jeep.

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Yeah, that's my point, I'm seeing now how the sales agent can say what they want for your business while knowing and hiding behind the fact that the underwriter is the one that make the decisions. My next move after the new build is to either switch to a "stated value" insurance company and/or also install a GPS type system so the vehicle can be monitored/tracked.

Im sorry for your loss. But thank you for posting this always wondered what would happen.

I remember when you posted about it being stolen and thought how your stomach must've been flipping. I am sorry this happened, but subscribed since even through the theft you're willing to let us learn with you.

I've been following your story right after it happend and I feel for you brother! What a Shitty feeling.:icon_crazy: I also have State Farm, and just finishing a major build. I asked my agent the same thing! How do I cover my jeep to the fullest? He said keep all recipts with pics on the back of them and I will be covered. I have asked the same question several times and get the same answer, but I just have a insecure feeling about that!:idontknow: I will be watching your progress. Good Luck!:beer:

First off, very sorry for your loss of the Jeep. This must really hurt.

Second, I am sorry to say what I am about to tell you will also hurt.

You will not see any significant amount of return on all of your aftermarket stuff.

To be clear. I do not work for State Farm, nor Allstate, etc. However, I have worked in claims for almost 20 years and have personally been through this very same thing.

State Farm will use a service called CCC, a company that will find comparable vehicles with similar features that are local based on your zip code. Then they will take your receipts and figure out how much the MARKET value of your vehicle was increased by. This is called a market valuation. You see where I am going with this?

You will have to ask yourself: How much more could I sell my Jeep for with all of these modifications?

Most of the time, it is about $.10 for every $1.00 spent. You can conduct your own research with websites that sell vehicles (cars.com, Craigslist, etc.).

You have options within the policy to assist you, but I cannot advise you with this general knowledge over a thread. I am not an attorney. If you want to PM me and we can talk over the phone. The discussion will take quite awhile because there is a lot to discuss.

Good luck!!

SaddleTramp said:

Yeah, that's my point, I'm seeing now how the sales agent can say what they want for your business while knowing and hiding behind the fact that the underwriter is the one that make the decisions. My next move after the new build is to either switch to a "stated value" insurance company and/or also install a GPS type system so the vehicle can be monitored/tracked.

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Saddletramp,

You are well to be worried. You have to be careful how the policy reads, ESPECIALLY the endorsement for "stated value." Just because you have a stated value endorsement does not always automatically mean an increase in claims payout. Also, just because you pay more in premium does not dictate a full stated amount payout, that is only part of it. There are also "appraised" value policies, which are also different, but worse.

And to everyone else, this is just industry knowledge. While there are variations to each policy, all insurance companies have to get there policies approved by their respective departments of insurance. This is no time to start an insurance bashing thread. Things like $1,000 limit of liability are common with most companies.

As for agents, many times they do not even know how the policies will handle a claim. They do their best but the things get complicated. But please, don't bash them either. It is the claims department that has the final say.

NevadaZielmeister said:

Saddletramp,

You are well to be worried. You have to be careful how the policy reads, ESPECIALLY the endorsement for "stated value." Just because you have a stated value endorsement does not always automatically mean an increase in claims payout. Also, just because you pay more in premium does not dictate a full stated amount payout, that is only part of it. There are also "appraised" value policies, which are also different, but worse.

And to everyone else, this is just industry knowledge. While there are variations to each policy, all insurance companies have to get there policies approved by their respective departments of insurance. This is no time to start an insurance bashing thread. Things like $1,000 limit of liability are common with most companies.

As for agents, many times they do not even know how the policies will handle a claim. They do their best but the things get complicated. But please, don't bash them either. It is the claims department that has the final say.

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My policy has a value on the vehicle by it's self(without mods). Then they cover all the mods at full value but not labor. Give your agent a call they will be the most help.

Subscribed as well..........I have Allstate and I was told from my agent the same thing (only up to $1000)........so with the build that i have going on at Trail Jeeps im looking to get the best coverage possible and State Farm is one im looking at right now......

~Woodrow~

Fir-na-tine said:

Subscribed as well..........I have Allstate and I was told from my agent the same thing (only up to $1000)........so with the build that i have going on at Trail Jeeps im looking to get the best coverage possible and State Farm is one im looking at right now......

~Woodrow~

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That's what I have. They are amazing I would highly recommend them. They replaced the $4500 carbon fiber hood on my EVO X without batting an eye.

Not so fast

NevadaZielmeister said:

You are well to be worried. You have to be careful how the policy reads, ESPECIALLY the endorsement for "stated value." Just because you have a stated value endorsement does not always automatically mean an increase in claims payout. Also, just because you pay more in premium does not dictate a full stated amount payout, that is only part of it. There are also "appraised" value policies, which are also different, but worse.

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This is true. Stated Value policies are not what most people read.

NevadaZielmeister said:

You will not see any significant amount of return on all of your aftermarket stuff.

To be clear. I do not work for State Farm, nor Allstate, etc. However, I have worked in claims for almost 20 years and have personally been through this very same thing.

State Farm will use a service called CCC, a company that will find comparable vehicles with similar features that are local based on your zip code. Then they will take your receipts and figure out how much the MARKET value of your vehicle was increased by. This is called a market valuation. You see where I am going with this?

You will have to ask yourself: How much more could I sell my Jeep for with all of these modifications?

Most of the time, it is about $.10 for every $1.00 spent. You can conduct your own research with websites that sell vehicles (cars.com, Craigslist, etc.).

You have options within the policy to assist you, but I cannot advise you with this general knowledge over a thread. I am not an attorney. If you want to PM me and we can talk over the phone. The discussion will take quite awhile because there is a lot to discuss.

Good luck!!

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This is absolutely not true. You are only telling half of the story. This what the insurance company will offer to do first.

Irish JK said:

This is absolutely not true. You are only telling half of the story. This what the insurance company will offer to do first.

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Really? Based on what? What experience do you have? Please share your qualifications with us. Saying what I said is false is like telling a lawyer the law is wrong.

That was why I offered the OP to contact me because all policies are different. Reading and understanding the policy is key. I cannot comment further until I have more info, and then that is private information that should not be divulged over a public forum.

Uh oh Irish, you have upset the almighty insurance God.