Insurance coverage questions...

[OorQue@aol.com]

This weekend, I was at a local Honda salvage yard to pick up some odds-n-ends 
for my sister's '88 Accord LXi and struck up a conversation with a kid -- 
under 25 years old but definitely over 18 -- who has a slammed '89 Civic 
something or other. 

Me:  "How come you're playing around with a Honda instead of a *real* car?"

Him: "This was my mother's car so I got it cheap.  It's also pretty nice to 
drive every day and cheap to maintain and insure."

Me: "Is insurance really that bad for young people these days?"

Him: "It sure is ... I tried to buy an '89 Dodge Conquest last year but the 
insurance was going to cost me almost $250 per month, which is more than 
twice what I'm paying for the Civic."

Me: "Yeah but what if you put a turbo on that instead?"

Him: "It doesn't seem to matter.  The insurance agent only seemed concerned 
about whether I'd installed any stereo stuff in it and had an alarm system 
and not whether I'd made any other modifications to it.  I've been thinking 
about adding a turbo and it seems like there are quite a few kits out there 
that sell for $3000 or less.  Of course, nitrous is the cheapest way to go 
but refilling the tank every week seems like a pain."

Me: "I remember 10 years ago when kids your age were buying and insuring 
4-cylinder Mustangs and Camaros then dropping V8s into them ... is this still 
happening today?"

Him: "Yeah, I've got a friend who did that but who wants a Mustang?"

On the drive home, I started thinking.  In the UK, my friend tells me he's 
required to notify his insurance carrier about any changes he makes to his 
car, even to the point of installing different size tires on the factory 
rims, and they then adjust his insurance premium accordingly.  He finds it 
hard to believe that here in the US, I could, in theory, drop a Chevy V8 into 
my 200q and not report this to my insurance carrier, let alone have to pay 
higher premiums because of it.  He said if he doesn't report everything, he 
risks having his claims denied.

I've sort of danced around this issue with my insurance agent since I'm smart 
enough not to ask a question to which I don't already know the answer but 
lately I've been wondering if I'm leaving the door open for trouble down the 
road when I wipe out the proverbial school bus full of kids in my 2.5L 200q 
with 140hp more than it had when it left the factory.

Has anybody ever investigated this matter thoroughly?  Are there any 
insurance agents out there who are willing to clear the air on this for me?  
As much as I would hate to pay higher premiums, I'd hate even more to have a 
big accident then have my claim denied because I'd modified my car.

JG 



Am I supposed to be reporting this kind