Supplemental coverage for Jeep upgrades and modifications?

[RubiDukkie]

Do any insurance companies offer supplemental coverage for expensive Jeep builds (upgrades and modifications)? I'm not talking about Classic or Collector car insurance. They don't cover modern Jeeps built for off roading. I've already invested a bit into my Jeep JT and am getting ready to add a good deal more. The $2,000 max limit my USAA policy offers in Virginia doesn't come close to what I need.

Any feedback is appreciated.

Sponsored

 

[Reinen]

Some do. You need to ask. It will increase your premium a bit but you can declare aftermarket add-on addendum to the policy.

However be aware that you'll need to provide full receipts and records. If you don't have that, don't bother don't bother declaring them because it will become a problem if you file a claim. More often than not, aftermarket parts are self-insured.

 

[RubiDukkie]

So I called USAA and spoke with a rep, who happens to be a Jeep owner himself. I asked:

Does USAA cover my 4x4 Jeep if I take it off of paved roads?

such as :

* Forest roads,
* Off-Highway Vehicle (OHV) roads,
* Off-Road Vehicle (ORV) parks trails/roads,
* Rock crawling due to rocky obstacles on any of the previous.
* Designated ORV beaches,
* Designated ORVs sand dunes.

Answer: YES

Will USAA still insure my Jeep if I modify it with the following?

* Suspension lift
* Larger tires

Answer: YES

Is there any limit on the lift height?

Answer NO

I think I also asked the same about the tire size, not sure, but I think he said no limit there either.

He said my auto policy covers the vehicle Blue Book value + $5,000 limit on the total of modifications/upgrades added.
The suspension lift is fully covered for the actual amount and is not limited to the $5,000.
The $5,000 total limit does apply to new wheels, bigger tires, skids, camper shell (SmartCap), etc.

However, because I have an umbrella insurance policy, this provides extra coverage for any modifications/upgrades up to the amount specified under the umbrella policy statement "Motor Vehicles (Includes Private Passenger and Miscellaneous Vehicles)".
This effectively covers well above 100% of all current and planned upgrade/modifications. This kicks in after the $5,000 limit is hit.

He did say to keep receipts for everything and have a GPS tracker, like LoJack, installed/activated due to the higher coverage. I think he also said something about because of going off-road also, but not sure. Once I have the tracker activated, I will call USAA back and they will add a discount to my auto policy.

He didn't say to do this, but I am also going to document with pictures all modifications/upgrades on my Jeep, just so I have that proof if my Jeep were stolen.

So, if you have USAA, I suggest calling them and asking about your specific situation. If you do, please post what you find out here. Keep in mind, I am in Virginia, so I don't know if the policy provisions differ by state.

 

[RubiDukkie]

Well, I called USAA back today to speak with a different representative for confirmation on what I was previously told. It turns out that I am only covered for Blue Book value + $5,000 limit on the total of customizations added, this includes the suspension lift, or essentially any non-OEM components. The umbrella policy only covers me for liability scenarios and not as an extension to collision coverage. Also, there is no scenario where a GPS trackers is required. I don't understand how I can get completely different responses from each representativet, but there it is.

So, I will have to find additional coverage elsewhere, if that is even possible given that my Jeep is a daily driver and I take it off-road. I already tried American Collectors Insurance (ACI), whom USAA partners with, and they won't cover any vehicle taken off-road.

 

[Call Me TD]

I work for a major carrier. Do not east ostrich eggs if you get my drift. Part of that customization should be additional. So if a factory strut is 100.00, they will try to write for an aftermarket at say 50.00, they then owe you the difference of the actual cash value of the oem part to the custom part.

So, oem = 100
custom - 150
acv of oem (napa oem equivalent ect) = 50.

Your estimate would be for the 50.00 acv of oem plus 100 for the custom equipment. DO NOT LET THEM TELL YOU CUSTOM EQUIPMENT TRUMPS ACV OF OEM. Sort of like gap insurance.

Looks like you are sorted but wanted to throw this out there for you and other forum members.

 

[RubiDukkie]

FYI, just got off the phone with Hagerty. They will not insure a 2021 Jeep nor any vehicle that is driven off-road. Time for me to start reaching out to some local independent insurance agents and see what I find.

 

[Call Me TD]

Remember, if you had to go off road to miss an animal or a head on collision it is not off-roading

 

[Ratbert]

FYI, just got off the phone with Hagerty. They will not insure a 2021 Jeep nor any vehicle that is driven off-road. Time for me to start reaching out to some local independent insurance agents and see what I find.

There was some discussion a while back about what "off road" means from an insurance perspective. Basically when you're on trails that are legal to drive on you're "on road" from an insurance perspective.

I'm not saying that's definitive, but many people were making that claim.

 

[RubiDukkie]

Got a call back from Ashley at The Phoenix Insurance, https://www.thephoenixinsurance.com/. If you are not familiar with them, watch this video:

Don't Get Screwed. Our Secret On Auto Insurance For Our Jeep Wrangler and Race Car!


That video is from five years ago and a that time they only provided coverage in the following states:

Arizona
Arkansas
Colorado
California
Iowa
Kansas
Missouri
Montana
New Mexico
Nebraska
Oklahoma
Texas

So, I wanted to find out if Virginia has been added to the list since then. It hasn't, but she suggested I reach out to Progressive. Ashley said Progressive does not have any off-road exclusion and that they can provide a stated value policy. I will do some research into Progressive before I give them a call, but this lead is encouraging. I am also waiting on a call-back from a local independent agent to see if they have anything to offer.

P.S. Sorry, I didn't get an updated list of states from Ashley, but if you are in a state where they operate, I highly suggest you give her a call. My wife and I plan to retire in Colorado in 2-3 years and I know I will reach back to her at that time.

 

[Andy@AAV]

USAA said (a few years ago when I asked) that they will cover the vehicle up to policy limits so long as a tow truck can get the vehicle out. Mojave road = fine, Rubicon trail maybe not so much. Of course, they can always play games but I like USAA, they have always taken care of me.

 

[THAW]

I know nothing about this company, merely saw them at Overland Expo:

https://tredder.com/

 

[JP52]

I asked my insurance company, Safeco, in CA about additional coverage for modifications and they did have a supplement you could add but it was so expensive I passed. It was like $300 per year for $5000 of coverage. It will be interesting to hear what Progressive quotes you.

 

[RubiDukkie]

I know nothing about this company, merely saw them at Overland Expo: https://tredder.com/

I did some research on Tredder. Here is a summary:

Tredder is a brand new insurer that provides coverage for your mods & gear. Tredder works in addition to your current auto insurance. Per their online estimator, modifications totaling $30,000 would cost between $50.33 to $78.88 per month.

Example some of items that can be covered:
* Aftermarket modifications to your 4WD can be insured for an agreed value, independent of your vehicle's value.
* Covers labor and installation costs so you can fully rebuild your 4WD, from electrical work to fabrication and fitting accessories.
* Covers custom accessories
* Covers any suspension setup under 12 inches
* Covers upgraded gearbox, reduction gears, or diff locks
* Covers performance mods from intakes and exhausts to fuel upgrades, turbos, dyno tunes, and more

Tredder is underwritten by Tokio Marine HCC out of Delaware, MD.

https://www.tmhcc.com/en-us/news-an...nture-insurance-in-groundbreaking-partnership

About Tokio Marine HCC:

Tokio Marine HCC is a member of the Tokio Marine Group, a premier global company founded in 1879 with a market capitalization of $73 billion as of June 30, 2024. Headquartered in Houston, Texas, Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Continental Europe. Tokio Marine HCC’s major domestic insurance companies have financial strength ratings of ‘A+’ (Strong) from S&P Global Ratings, ‘A++’ (Superior) from AM Best, and ‘AA-’ (Very Strong) from Fitch Ratings; its major international insurance companies have financial strength ratings of ‘A+’ (Strong) from S&P Global Ratings. Tokio Marine HCC is the marketing name used to describe the affiliated companies under the common ownership of HCC Insurance Holdings, Inc., a Delaware-incorporated insurance holding company. For more information about Tokio Marine HCC, please visit www.tokiomarinehcc.com.

This coverage is being offered by a non-admitted insurer who is not licensed with state insurance departments. The insurer is not subject to the same regulations as an admitted insurance carrier including financial solvency regulations or enforcement. The carrier may not be subject to certain State Guaranty Fund or Association requirements.

google: What is a non-admitted insurer?

A "non-admitted insurer" refers to an insurance company that is not licensed by a specific state to operate within its borders, meaning they do not have to follow the same regulations as licensed (admitted) insurers, and are typically used for high-risk or specialized insurance needs that standard carriers might not cover; also known as a "surplus lines" or "excess lines" carrier.

Key points about non-admitted insurers:

Less regulation:
They have less stringent regulatory oversight compared to admitted insurers, allowing them to offer more flexible coverage options for unique risks.

Specialty coverage:
Often provide insurance for high-risk situations like coastal property, emerging industries, or complex liability scenarios that standard insurers might not cover.

No state guarantee:
If a non-admitted insurer becomes insolvent, policyholders may not be protected by the state's guaranty fund, meaning they may not receive full claim payouts.

Surplus lines office oversight:
While not regulated by the state insurance department directly, non-admitted insurers are typically overseen by a state's "surplus lines office".

I would think it is highly unlikely any existing claims would be paid, should Tredder become insolvent down the road. However, I will likely reach out to Tredder later, after reaching to to Progressive first. My current thinking is, see what coverage would look like with Progressive and possibly supplement any coverage gaps by Tredder.

 

[RubiDukkie]

P.S. I missed the following thread when I first did a search, so adding it here for others to read:

https://www.jlwranglerforums.com/forum/threads/off-road-auto-insurance.131821/

 

[RubiDukkie]

I called USAA back today and had "Car Replacement Assistance" added to my Jeep coverage for $70/year.

https://www.usaa.com/inet/wc/car-replacement
CAR REPLACEMENT ASSISTANCE
We'll give you 20% more than what your car is worth if it gets totaled or stolen.
What does car replacement assistance cover?
Covers Owned or financed vehicle on your auto insurance policy.
* When you're in an accident and your vehicle is declared a total loss.
* When your car is stolen and isn't recovered.
Keep in mind that you'll also need collision and comprehensive coverage on the vehicle.

Note: For USAA in Virginia, Comprehensive is called "Other Than Collision" on your policy.

Also, I haven't called Progressive yet about their stated-value coverage, so hoping to get to that next week.

Sponsored