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Frequently Asked Insurance Questions


















What Is a Material Change in Risk? How Does It Impact My Policy and Claims?

As a policy holder, you are responsible for informing your insurer of any changes made to your vehicle and/or how it is used. This includes things like vehicle modifications, changes in vehicle use (for example, commercial use), the addition of newly licensed drivers to your household, a change of address, etc.

A vehicle modification includes:

  • Performance-related modifications, such as upgrading the engine
  • Electronic modifications, such as upgrading the stereo
  • Cosmetic modifications, such as tinting the windows

Commercial use means any change in use where the insured vehicle is now used for commercial purposes. For example, if you recently became a painter and you started using your mini-van to carry your paint and equipment, this would be considered commercial use.

You should always notify your insurer when any material change, as outlined above, is made to your vehicle. The risk of this change will be re-evaluated and may result in a premium adjustment. If you make any of the changes described above but don’t inform your insurer, the insurer can decide to deny your claim, and may even cancel or void your policy. For example, if you modify your vehicle to give it a turbocharged engine and you end up crashing, you’ll most likely be refused coverage for violating your insurance contract.

Note: If your vehicle has been modified because of a medical condition, you should still notify your insurer.

Read other questions and answers about auto insurance.

































































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