Automobile modifications reminiscent of alloy wheels or tinted home windows can doubtlessly depart drivers with huge surprising payments, an ombudsman is warning.
The Monetary Ombudsman Service (FOS) stated it’s listening to from growing numbers of auto house owners who’ve been left to pay vital sums as a result of they’ve unknowingly invalidated their automotive insurance coverage.
Automobile modifications can vary from physique kits and customized paintwork to efficiency enhancements reminiscent of upgraded exhaust techniques or engine tuning.
Whether or not motorists are altering alloy wheels for further fashion or remapping the digital management unit (ECU) for engine efficiency, not declaring modifications can have critical penalties, the service stated.
It’s seeing circumstances the place a failure to declare modifications results in insurance coverage being invalidated or claims being rejected within the occasion of an accident.
It’s essential house owners inform insurers of any modifications, even when they have been made earlier than the automotive was bought
Rachel Lam, FOS
Typically drivers will not be conscious that modifications – even seemingly minor alterations reminiscent of tinted home windows or stereo system enhancements – can result in increased premiums due to the elevated danger related to these autos, the service stated.
Rachel Lam, ombudsman director of insurance coverage on the FOS, stated: “For many individuals a automotive is their pleasure and pleasure, and it’s comprehensible that they might wish to modify or personalise their car.
“However these modifications can have large repercussions – growing premiums, invalidating insurance coverage or leaving unsuspecting automotive house owners 1000’s of kilos worse off.
“It’s essential house owners inform insurers of any modifications, even when they have been made earlier than the automotive was bought.
“If folks don’t really feel they’ve been handled pretty by their insurer, they’ll come to our service, and we are going to examine their grievance. Getting a good reply is free and straightforward.”
FOS recommended that earlier than making any modifications, motorists ought to overview their coverage and get in touch with their insurer to make clear what must be declared.
If somebody is buying a car, they need to ask questions and study paperwork to know if it has beforehand been modified.
Individuals ought to at all times present correct details about any modifications to their car when making use of or renewing insurance coverage, the service stated.
In a single case, somebody contacted the ombudsman after his motor insurer voided his coverage and declined his declare following an accident.
When the insurer seemed on the declare, they found the automotive had alloy wheels fitted that have been three inches bigger that the producer’s normal measurement. The patron claimed he didn’t know the wheels had been modified.
The ombudsman felt that a median shopper wouldn’t spot the distinction within the new and normal tyres. For that purpose, the service believed the patron took affordable care when making use of for motor insurance coverage. Consequently, the insurer was ordered to reinstate the coverage and take a number of different steps to place issues proper, together with compensating the patron for misery and inconvenience.
In one other case, a shopper made a declare after an accident, solely to have the coverage voided when the insurer discovered about an undeclared ECU remap and exhaust retuning.
The patron argued that the modifications have been already in place when he bought the automotive. Regardless of this, the insurer produced proof that he was conscious of the modifications and had didn’t disclose them. The ombudsman agreed that the insurer’s determination to void the coverage was truthful.
The service has additionally seen circumstances the place the proprietor has disclosed modifications, however on the level of declare, found that the worth of the modification just isn’t lined, regardless of paying extra for the insurance coverage.
This backs up the significance of checking and studying all coverage paperwork to know what is roofed by the insurer, the service stated.
