I installed a $6,000 supercharger on my Mustang GT. Six months later, I slid into a guardrail in the rain. The claims adjuster popped the hood, took one photo of the blower, and closed his iPad. Two days later, I received a letter not just denying the claim, but rescinding my policy back to the start date. They claimed “Material Misrepresentation” because I failed to disclose a performance modification that increased the risk.
Key Takeaways
- The “Risk” Has Changed: Insurers rate your premium based on stock horsepower. Adding 200hp changes the risk profile. If you don’t tell them, you are effectively lying.
- Rescission is Worse than Denial: “Rescission” means they treat the policy as if it never existed. They refund your premiums, pay $0 for the crash, and leave you legally uninsured.
- The “Performance” Trigger: Cosmetic mods (wraps, wheels) rarely cause rescission. Performance mods (Turbos, Nitrous, ECU tunes) are the red flags.
- Database Blacklist: Having a policy rescinded for misrepresentation puts a mark on your CLUE report, making it hard to get insurance anywhere else for 5-7 years.
The “Why” (The Trap): Material Misrepresentation
The clause in your application asked: “Has the vehicle been modified from stock?” or “Is the vehicle used for racing or high performance?”
If you answered “No” and then bolted on a turbo, or if you added it later and didn’t update them, you violated the “Duty to Disclose.”
In 2026, AI photo analysis software automatically flags aftermarket intercoolers and intakes in crash photos. You cannot hide it.
[IMAGE: Screenshot of a denial letter citing “Undisclosed Performance Modifications”]
The Investigation: I Called Them
I called three carriers to ask: “I just added a turbocharger. Will you still cover me?”
1. Geico / Progressive (Standard)
- The Response: “We generally do not insure vehicles with aftermarket forced induction.”
- The Result: They would likely send a non-renewal notice. If I didn’t tell them, they would deny a claim.
2. State Farm
- The Response: “It depends.”
- The Nuance: They were willing to keep the policy if I simply wanted liability, but they refused to cover the value of the turbo itself.
- My Analysis: Risky. If an underwriter sees “racing mods,” they might cancel anyway.
3. National General (The “Enthusiast” Option)
- The Response: “Yes, list it.”
- The Result: They have specific programs for modified street cars. The premium went up by $40/month, but I was fully covered.
Comparison Table
| Modification | Standard Policy Status | Result of Non-Disclosure |
| Cat-Back Exhaust | Usually Accepted | Minor Adjustment |
| Cold Air Intake | Accepted | Ignored |
| Turbo/Supercharger | Prohibited | Rescission (Total Denial) |
| Roll Cage | Prohibited (Racing Risk) | Rescission |
Step-by-Step Action Plan
- Read Your Application: Look at the copy of the form you signed. Did you check “No” on modifications?
- Update Your Carrier: If you added a turbo, call them today. Say: “I have made performance updates to the vehicle. I need to ensure I am still covered.”
- Be Ready to Switch: If they say “We can’t insure that,” be polite, hang up, and call a specialist (Hagerty/Grundy) immediately. Do not wait for them to cancel you.
- Remove Before Adjuster Arrives? Do not try to remove parts after a crash. That is Insurance Fraud. The crash scene photos likely already show the parts.
FAQ Section
What about an ECU tune?
It’s invisible, but if the “Black Box” (EDR) shows the RPM limit was raised or boost pressure was higher than stock, forensic engineers can find it in a major liability claim.
Is a lift kit a performance mod?
Yes. It alters handling (rollover risk). You must disclose suspension lifts.
Does this apply to cosmetic body kits?
Usually no, but if you don’t disclose them, you won’t get paid for them. You won’t get cancelled, but you’ll be underpaid.