What constitutes a 'modified' bike?

conundrum

conundrum

Well-known member
This was brought up the other day over at the Motorcycle Distraction Facebook group, and figured I would mention it here too for input:

Essentially one person had their bike (SV650 I believe) with Jevco, and recently found out that anything that deviates from OEM/stock is considered 'modified', which means they may not be covered if anything happens to the bike. From others talking, it almost seems like this has become standard, and if you replace your exhaust, mirrors, levers, etc, then the bike is considered 'modified' and this may affect your ability to make a claim if there is ever a need to do so. I am also talking about coverage of the vehicle, not the cost of the 'mods', as I wouldn't really expect them to payout for an exhaust, mirrors, etc vs just paying out for the bike itself.

As I know there are some insurance experts here, I just wondered if any could chime in and correct any misinformation regarding this. Granted I can see an insurance company not wanting to touch a bike that has a lot more power than it should (same way they don't touch/like cars with custom-built engines, NOS, etc), but really are they this anal with bikes?

As for myself, I am about to pull the trigger on a Hindle for my CBR250R, and also want to make sure my insurance (TD MM) isn't going to have issues with this.

Thanks in advance
 
I know that a friend of mine tried to claim the mods after an incident and they would only pay out what the bike was worth with out the mods. That was because the mods were not added though. I think if you take pics and show the mods to the insurance you might get covered for them depending on what it is. Not sure at all though cause I have not been through it at all. I have some mods but I really don't expect to get a cent from my insurance if something happened to my bike.
 
So your friend had no issues claiming the bike though? My worry is they'd use the mods as an excuse that they are not liable for the bike, as they insured a stock bike vs a modified one.
 
I'm with Primmum (TD) and they are aware that the bike is lightly modded (powercommander, exhaust, windscreen, frame sliders, rear blinkers, etc.)

They made no comment about these when I made claims with them (twice now), other than the fact that they would not cover the replacement cost of the aftermarket parts beyond the appraised value of the motorcycle (my aftermarket exhaust does not change the appraised value of the bike, because it replaces the stock exhaust anyway, so no real value added. Same for the windshield, undertail, etc.).

The PowerCommander and frame sliders were "never insured" as they were not part of the bike as it was appraised (in stock OEM).

They did, however say that modifications such as serious engine modifications (swaps with other motors, turbo's, over boring, etc) or lowering the bike ("slamming it"), etc. would void my coverage.

My guess is that any modification which does not radically change the bike (eg. swapping components with similar, aftermarket components like an exhaust for an exhaust, mirror for a mirror) is ok, but anything that significantly changes the bike from OEM without the insurance company being aware of it would get your insurance void.

It would be nice to hear from the insurance adjusters on the board, however.


On a side note, I had strut tower bars in my previous honda civic and I was told by insurance (Dominion of Canada) that any damage to the car that resulted from that bar hitting/deforming any other part of the car in an accident would be my own responsibility. grrrr.
 
conundrum said:
So your friend had no issues claiming the bike though? My worry is they'd use the mods as an excuse that they are not liable for the bike, as they insured a stock bike vs a modified one.
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No problem claiming the bike.
 
When I set up my insurance for my 250R with TDMM, I asked what their limitations for modifications were. From what I recall, he mentioned no exhaust modification resulting in more than a 15% increase in HP, no paint work (I assume buying different coloured fairings is safe), and nothing "illegal". That last one is not ambiguous in itself, but the law isn't always cut and dry. There were a few other stipulations which I can't recall, but I remember them not being very relevant to anything I would do with bike.
 
I just went through this very issue. I had a devil of a time getting quotes for my new bike as no one had any info on it. I started a WTF type thread about this some time ago.

The week before I was to take delivery the wife was able to get a conditional quote based on a similar model from our present insurer, TD. The morning I was to pick up my bike I phoned to add it to our policy per the instructions given to my wife. I got the most anal, cross every T, dot every I, non English speaking person I've every had the displeasure to deal with. And that's saying something after some of the telemarketers I've had phone my home.
Anyway, she was very specific that NO, NONE, ZIP, ZERO modifications could be done without first contacting them, (TD). Only after getting authorization from TD would I be permitted to make the modification and I could not deviate from that which I had authorization for. Furthermore, she expressly stated that NO, NONE, ZIP, ZERO performance mods would be acceptable.
If I was to make a claim and it was discovered that ANY none authorized modifications had been made to my motorcycle (that's ANY mods) the policy would be void! Oh and not just from the date of the claim, NO, from day one! Meaning? I would be subject to a charge of operating a motor vehicle without insurance. She emphatically stated repeatedly that our conversation was being recorded and made me swear that the answer to a whole slew of questions were in fact the truth. Also that, before she'd add the bike, I understood everything she had explained to me.
When we arrived at the dealer the wife got on the phone and spoke to yet another person. She asked for verification of everything I had been told and subjected to. This woman apologized for the way in which I had been treated but did confirm that what I was told was true. However, she tried to relieve the tension by saying that it's just a formality and the only real problems they (TD) have is with "performance modifications such as exhaust systems and power commanders." And yes, I put that last part in quotes as that is how she phrased it.

We're not sure what to do about the wife's M796 at this point. When she put it on the policy in the fall of 2010 none of this crap was mentioned. Nor, have we received anything from TD informing us of these new regulations or asking about mods to her bike. She did tell TD the full purchase price which included a large portion of the extras she has on it. But, not an itemized list of those parts or any added since.

I swear I do not know of another industry that has so many legal loop holes in which it can take your money and yet wiggle out of giving you what you've paid for. Then, somehow make it look as if it's you're fault and they have done no wrong.
 
This is actually pretty easy. The Ontario Application Form (OAF 1) clearly asks for any modifications to the vehicle from the Manufacturers specifications. This is NOT even limited to aftermarket parts. This can include re-jets, adjusting the timing or 'otherwise altering' the vehicle.

Now most insurers do not take such a strict interpretation, but here is what you SHOULD consider. If what you are claiming is increasing the cost of the claim over the same claim on an 'unmodified' bike, then expect to encounter issues.

And you could try to look at it from the industry (or other people's point of view)... we have the same driving record, geography, coverages, etc. We have the same motorcycle (2012 Kawi ZX-14 example $16,000). We both pay $1,000 for insurance.

1. You load your bike up with $5,000 of aftermarket parts. When the vehicle is a write off in a claim, how much should you get?

2. You modify your bike and increase HP. This causes throttle blip causing you to lose control. Why should my bike be now classified as a 'higher' claim vehicle and it's classification resulting in higher premiums next year?

Just an alternate perspective.

To the OP, ask your insurer before you do any modifications to the bike. You will also encounter issues to 'prove' you didn't modify the bike just by asking. But at least you will know where your insurer stands on the exact mod.
 
Save your receipts for all mods on the bike. Anything cosmetic or anything that does not change the original manufacturers specs should be considered as long as you have the documentation to back it up. If you are altering the bike's specs (turbo, stretched swing arm etc) you could run into an issue so make sure that you check with your own insurer first, but things like eliminators and exhausts should be covered if you can prove your loss. It will be covered on an actual cash value basis which means that it will include depreciation but a full yoshi absolutely adds value to the bike and should be accounted for. If your bike is a write off you are esentially selling it to the insurer, so just like in a private sale, you never get the full value of mods back but you get something.
 
Major said:
... we have the same driving record, geography, coverages, etc. We have the same motorcycle (2012 Kawi ZX-14 example $16,000). We both pay $1,000 for insurance.

1. You load your bike up with $5,000 of aftermarket parts. When the vehicle is a write off in a claim, how much should you get?

2. You modify your bike and increase HP. This causes throttle blip causing you to lose control. Why should my bike be now classified as a 'higher' claim vehicle and it's classification resulting in higher premiums next year?...
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Major, I agree with your #1 point. If a person increases the value of their ride and expects to be compensated for that should they make a claim then they have to know they'll need to pay a higher premium.

Unfortunately, as much as I agree with your #2 point, it is not how the insurance industry as a whole views the situation. They do not care how a loss occurs or what factors caused it. All they see is a specific class of vehicle has had another claim. It doesn't matter if it's not even the same make, model, size or type as what you ride. If the classification you and you're motorcycle are in has an increase in claims you can expect to see an increase in your premiums. That's just how they roll.
 
Major said:
And you could try to look at it from the industry (or other people's point of view)... we have the same driving record, geography, coverages, etc. We have the same motorcycle (2012 Kawi ZX-14 example $16,000). We both pay $1,000 for insurance.

1. You load your bike up with $5,000 of aftermarket parts. When the vehicle is a write off in a claim, how much should you get?

2. You modify your bike and increase HP. This causes throttle blip causing you to lose control. Why should my bike be now classified as a 'higher' claim vehicle and it's classification resulting in higher premiums next year?
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Offsetting this ...

3. I modify my bike by adding a steering damper that the original manufacturer never bothered to include, even though they should have. Subsequently, when hitting a pothole that would have sent the stock bike into a tank-slapper making me crash, nothing happens.

Not all modifications are "bad".
 
Great question in respect of Insurance. I also wonder how this effects warrenty on new bikes. Do mods void your warrenty ?
 
AngelEyez said:
Great question in respect of Insurance. I also wonder how this effects warrenty on new bikes. Do mods void your warrenty ?
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Modifications normally won't void the WHOLE warranty, but they'll void the warranty on the affected component or subsystem. Don't forget that vehicles have multiple systems that are related to each other. If you install something that creates electromagnetic interference, that can affect every electronic controller on the whole vehicle ... In the VW/Audi world, every once in a while you hear some owner complaining because some sensor has crapped out under warranty and the vehicle needs to be connected to the diagnostic system in order to find out what's going on, but the dealer won't do it because of their aftermarket stereo. Well, guess what, the dealer is right, VW OEM radios are connected to the vehicle's on-board diagnostics network and a lot of aftermarket radios use that communication wire incorrectly. Sometimes the actual problem isn't that the sensor has crapped out, but that the stereo is interfering with the vehicle's on-board communication network and has affected something seemingly COMPLETELY unrelated to the stereo ... but it uses the same communication network ...
 
When I signed up with State Farm they told me that cosmetic mods (fairing/paint colour, lights, etc) are fine and that they're only concerned with mods that increase the performance of the bike. I asked about exhausts and they basically said 'ask us first but it's probably ok as long as it doesn't result in substantial power gains'.

Now, my current bike had an aftermarket exhaust already installed when I purchased it as well as a couple of other minor mods (rear sets, levers, flushmounts). State Farm saw these mods and took photos of the entire bike. I would expect that they should be covered in this case?
 
StateFarm and several others have flat out told me that anything beyond an aftermarket exhaust is modified. They even said the exhaust was a grey area. They also said that they would not touch a bike that was lowered for any reason, even to make you able to touch the ground better. They did say aftermarket suspension components (as long as the height is maintained), brakes, handlebars, levers, foot pegs/rear sets, etc was ok as long as the "general look" of the bike is not greatly modified from stock.

The same applies to most cars. Most people either don't realize or just hope they'll never end up in a situation where their "modified" vehicle bites them.

I have a cousin that lifted his pickup. Ended up having to sell it for less than than the lift kit cost him because no one would insure the thing.

Your best bet is to call a few insurance companies and ask how they feel about it. I say a couple instead of just yours because you don't want to be stuck with them if you want to change companies at some point.
 
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