I spent two years and $40,000 swapping an LS3 engine, modern suspension, and Wilwood brakes into my 1972 C10 truck. The Agreed Value on my policy was still set at $15,000 (the stock value). When the truck was stolen, the insurer sent a check for $15,000. I lost $40,000 in upgrades because I never updated the policy.
Key Takeaways
- Agreed Value is Not Automatic: You must submit receipts and photos to raise the value. The insurer is not psychic.
- “Material Change”: Significant modifications (like doubling the horsepower) change the risk profile. If you don’t disclose them, the insurer can void the policy for “Misrepresentation.”
- Labor Costs: Document your own labor hours if you built it. Some insurers cover DIY labor; others only cover parts.
- The “Restomod” Class: You need a policy that understands a ’72 C10 can be worth $15k (stock) or $80k (built).
The “Why” (The Trap): The Stale Appraisal
You bought the policy when the truck was a beater. You built it into a showstopper.
The policy says: “We pay the limit shown on the Declarations Page.”
If the limit says $15,000, that is the limit. Receipts don’t matter after the loss if the limit wasn’t raised before.
[IMAGE: Spreadsheet screenshot showing “Part Description,” “Cost,” and “Date Installed” vs. Policy Limit]
The Investigation: I Called Them
I asked how to insure a heavy modification.
1. American Modern (AMIG)
- Process: Submit a list of modifications and the cost.
- Labor: They generally do not pay for DIY labor, only parts receipts.
- Verdict: Good for parts coverage.
2. Hagerty
- Process: “Agreed Value” update.
- Labor: They are more flexible on valuing the “finished product” based on market comps of other Restomods, rather than just a stack of receipts.
- Verdict: Better for high-end builds.
3. State Farm Classic
- Process: They struggled. They wanted to value it as a “1972 Chevy Truck.” They didn’t have a book value for an LS-swap.
- Verdict: Avoid. They don’t understand the market.
Comparison Table
| Feature | Stock Policy | Restomod Policy |
| Engine Swaps | May Void Coverage | Accepted |
| Valuation Method | Book Value | Agreed Value (Comps + Build Cost) |
| Roll Cage / Tubbing | “Racing” (Denied) | Accepted (Pro Street) |
Step-by-Step Action Plan
- Build a Binder: Keep a physical binder with every receipt. Scan them to the cloud.
- Quarterly Updates: Every 3 months during the build, email your agent: “I just added $5k in suspension. Please raise my Agreed Value.” Pay the $10 extra premium.
- Pro Appraisal: Once finished, pay $300 for a professional appraisal. This validates the quality of the build (e.g., “Professional welds,” “Show paint”).
- Disclose Horsepower: If you added a turbo, tell them. If they find out after a crash, they can deny for “undisclosed performance mods.”
FAQ Section
Does insurance cover my own labor?
Generally no. They cover the cost to replace the vehicle. However, a professional appraisal values the car based on what it would cost to buy a similar finished car, which inherently includes labor value.
Are roll cages allowed?
Yes, for “Pro Street” cars. But if it looks like a dedicated track car, they might deny it.
What about Nitrous?
Most street policies exclude cars with Nitrous Oxide systems hooked up. You usually have to disconnect the bottle to be insured.