Car insurance help..

raskazz

Flyboy152 wrote: »

They would probably have tied, but I am pretty sure (unverified) they would have to prove that the modifications would have been contributory to the claim.

No they wouldn't. It is a matter of non-disclosure/misrepresentation rather than breach of warranty/condition - so if the insurer would not have offered cover had the modification been disclosed, then they are perfectly entitled to void the policy regardless of whether the modification caused or contributed to the loss.

shaun_from_Africa

but I am pretty sure (unverified) they would have to prove that the modifications would have been contributory to the claim.

If I had to make a claim and not declared the modifications the insurance company could legally have refused to pay out due to the fact that the modifications may have made the car liable to an increased premium.
This is no different to health or travel insurance companies who don't pay out if they can prove that there was an undeclared medical condition, even if this condition was in no way related to the condition claimed for.

The modifications to my car don't affect the performance, but they do make it appear different to a standard model of this car (possibly making it more attractive to thieves) and it would probably cost more to repair in the event of an accident.

Flyboy152

raskazz wrote: »

Not true...

Please explain.

shaun_from_Africa

From the UK insurance ombudsman.

fraudulent or deliberate non-disclosure

If we consider that a policyholder’s non-disclosure (or misrepresentation) involved a material fact, induced the firm to offer the policy (on the relevant terms), and was fraudulent or clearly deliberate, then the firm can decline to meet the claim, as well as "voiding" the policy "from inception" (cancelling it from its starting point). It can also decline to return the premiums and seek to recover money it has paid out to the policyholder in relation to previous claims under that policy.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-ins-nondisclosure.htm

dacouch

shaun_from_Africa wrote: »

From the UK insurance ombudsman.



http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-ins-nondisclosure.htm

Inadvertent is the more common non disclosure and is more likely how the OPs non disclosure will be dealt woth

shaun_from_Africa

I agree dacouch, but the reason I posted the ombudsmans opinion was relating to this comment by flyboy replying to a post that I made.

They would probably have tied, but I am pretty sure (unverified) they would have to prove that the modifications would have been contributory to the claim.

Without knowing what sort of exhaust was fitted and who fitted it, it's really all guesswork.
If the insurance loss adjuster noticed that the exhaust wasn't standard or was damaged, it must have been fairly noticeable.

dacouch

I can see what your getting at but your earlier post was sort of right and sort of wrong.

For an inadvertent non disclosure for say a modification, the insurer would need to ascertain the reason for the non disclosure to find out which it falls under eg Inadvertent, deliberate etc as they each have different results.

Assuming it was an inadvertent non disclosure which often modifications are classed as , then the insurers would look to see whether they would have insured the customer had the right information been declared. If they would have then they can redraw the insurance up on the basis they would have eg apply any excesses and / or extra premium etc.

Your earlier post stated this "If I had to make a claim and not declared the modifications the insurance company could legally have refused to pay out due to the fact that the modifications may have made the car liable to an increased premium." which if it had been inadvertent and required an extra premium the Insurer would have to deal with the claim (After any terms / extra premium have been paid).

Deliberate non disclosure is (normally) dealt with in a more harsh way than inadvertent.

Flyboy152

shaun_from_Africa wrote: »

If I had to make a claim and not declared the modifications the insurance company could legally have refused to pay out due to the fact that the modifications may have made the car liable to an increased premium.
This is no different to health or travel insurance companies who don't pay out if they can prove that there was an undeclared medical condition, even if this condition was in no way related to the condition claimed for.

The modifications to my car don't affect the performance, but they do make it appear different to a standard model of this car (possibly making it more attractive to thieves) and it would probably cost more to repair in the event of an accident.

Yes I see, good point.

shaun_from_Africa

Your earlier post stated this "If I had to make a claim and not declared the modifications the insurance company could legally have refused to pay out due to the fact that the modifications may have made the car liable to an increased premium." which if it had been inadvertent and required an extra premium the Insurer would have to deal with the claim (After any terms / extra premium have been paid).

But the reason I stated it as I did was due to the fact that I was giving a personal case and I was fully aware of the modifications when I purchased the car as they were shown on the original invoice, so there was no way that I could have legitimately claimed an inadvertent omission when I applied for insurance.

pulsex0r

I'm grateful for the influx of messages!

It is not the whole exhaust system as far as I'm aware instead it is just the backbox.

Regarding if those were the only "mods" on the car then no - the windows were also tinted.

It is the Co - Operative insurance company.

As far as I'm aware backboxes don't have much performance gain, if at most a couple of BHP.

What would you say is the best course for him to go for? what is the absolute best he can hope for? Am I right in saying that the insurance will have to pay for the 3rd party's costs even though they've voided his insurance?

Once again, your help is appreciated.