Automotive

Depreciated value, Insurance company

  • Last Updated:
  • Feb 27th, 2018 10:53 pm
[OP]
Newbie
Mar 21, 2009
2 posts

Depreciated value, Insurance company

Car been stolen, but i had upgrades installed for $14,000 plus personal beloning about $1,100. Have all invoices, parts been installed a year ago. Insurance company willing to pay me as they say Depriciated value of $3200 for upgrades and personal staff. Can somebody explaine me how they calculate Depriciated value and what can be done to increase it? Or what should i do? Bought the vehicle in 2013 upgraded in the end of 2017, spend $55,000 and now getting $25,000 for it, just unbelivable need some help.
10 replies
Deal Guru
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Oct 5, 2008
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kazamatik wrote: Car been stolen, but i had upgrades installed for $14,000 plus personal beloning about $1,100. Have all invoices, parts been installed a year ago. Insurance company willing to pay me as they say Depriciated value of $3200 for upgrades and personal staff. Can somebody explaine me how they calculate Depriciated value and what can be done to increase it? Or what should i do? Bought the vehicle in 2013 upgraded in the end of 2017, spend $55,000 and now getting $25,000 for it, just unbelivable need some help.
Dying to know what these “upgrades” were totaling $14,000.
Did you declare them to your insurance company at the time of installation?
Do you pay additional premium for them?
If no to either....you have no chance.
Personal items would fall under your home policy, you’d have to pay the deductible first.
Good luck
Last edited by Swerny on Feb 26th, 2018 7:16 pm, edited 1 time in total.
Deal Expert
Aug 22, 2011
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Forget the upgrades, that's a lost cause.
Find similar vehicles being sold on autotrader and show your insurer.
Deal Expert
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Jul 22, 2006
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The upgrade is going to be mostly a write off. MODS DON'T INCREASE the value of your car (unless you have specific insurance coverage for it)

Best you can try to do is hire a licensed appraiser, hand that in and see if you can get a higher offer.

If you are still unsatisfied go to the ombudsman then to mediation then to court

Sorry :(
Deal Expert
Aug 2, 2001
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The "personal belongings" that were stolen out of your vehicle are covered by your home insurance, not auto insurance. Typically not worth a claim because of the deductible and what you would receive in return.

Remember insurance only covers what you are paying for them to cover. If you are paying for premiums on a 2013 Honda Civic then you should be expected to be covered for a 2013 Honda Civic, not a 2013 Honda Civic with 20" chrome wheels, a custom turbo system and a stereo that shakes your neighbours house.


I think you need to have a conversation with your adjuster about what you are supposed to be covered for. There is an appeals process for every insurance company - also ask about the process in case you are unsatisfied or feel you are not being treated fairly. Remember an ombudsman is there to make sure the proper process is followed - not to be your advocate regardless of whether it is right. People make mistakes, the ombudsman is there to help catch them and fix them.
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Aug 11, 2008
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Also, there is a max limit on stereo equipment installed in the vehicle. per the OAP :

We will not pay more than $1,500 for loss or damage to electronic accessories or equipment other than factory installed equipment. We will pay the actual cash value of the equipment up to $1,500 in total.
“Electronic accessories and equipment” includes, but is not limited to, radios, tape players/decks, stereo players/decks, compact disc players, speakers, telephones, two-way radios including CB radios, ham radios and VHF radios, televisions, facsimile machines, electronic navigation assistance, positioning and location finding devices, computers, and items of a similar nature.
“Factory installed equipment” means electronic accessories and equipment which was included in the original new purchase price of the automobile.
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Deal Guru
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Jul 12, 2003
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Car got stolen, I feel bad for you. But that's another reason not to invest into something that depreciate.
People modding like car like hell but it doesn't really increase the value of the car, it is more just for personal wants and taste.

If I'm buying a car, I would rather it is as stock as possible than something who been taking pieces apart from it and assembly it back the way differently than the manufacture. God know rather the person did it right.

I did mod my car when I was younger (nothing super major) and I always part it out when I'm selling it. I get few hundreds dollars back here and there.

Also if you invested a significant amount of money into the car, the insurance company would need you to declare it, otherwise those extra you "invested" is not going to insured.
As others said, the personal belonging inside the car is covered under your home insurance. Some home insurance policies has $1000 deductible, so you judge rather it make sense to make a claim about it.
Retired Forum Moderator February 2009 - June 2015
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Also, you only get reimbursed for what you paid for parts not labor.
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Apr 5, 2016
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If possible, you could part out your car and try to salvage as much of the aftermarket parts as you can. We do that here in BC for mods we don't have a receipt for. Technically even here in BC, you're suppose to declare your car as modified but so far I haven't seen that being a major issue.

I think one loop hole people do is declare the work done as recent "maintenance" and get it covered.
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Mar 23, 2008
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bomber17 wrote: If possible, you could part out your car and try to salvage as much of the aftermarket parts as you can. We do that here in BC for mods we don't have a receipt for. Technically even here in BC, you're suppose to declare your car as modified but so far I haven't seen that being a major issue.

I think one loop hole people do is declare the work done as recent "maintenance" and get it covered.
It’s often a challenge to part it out once it gets stolen... And if it is recovered, anything easily saleable would probably be gone.

C
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Oct 10, 2016
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You're lucky. Here's what happened to me. I got in a car pile up car got totaled by the insurance. I didn't take replacement value since nothing never happened so that time I got screwed. Fast forward they make me an offer ...I tell the insurance company I had xyz upgrades on the car expecting them to pay me a bit more money....nope the offer they came in was 1/3 of what I was supposed to get. Reason for that is that they would have charged me 3x the premium vs what I was paying(For a chip+intake+coilovers+BOV+intercooler). After 30 days of driving the rental car I had to gave back the car rent one on my own while fighting them and finally after 3 months I got the same amount I was offered in the beginning which I finally accepted. Lesson is don't claim your mods unless you declared them....even aftermarket wheels need to be declared according to them.

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