Alloy wheels invalidate insurance - advice needed

usignuolo

I only have outline details but would appreciate advice. My nephew is a chef at a respectable restaurant. His friend is another chef there. Both hard working young men who put in long hours. They are more interested in sport and cars in their limited free time, than reading stuff. Car insurance is expensive for young people in catering and nephew's friend has a hot hatch insurance for £2,200 per year fully comp, arranged via broker. Sometime after he bought it he fitted alloy wheels.

Last month he was in a crash - not sure of details but not reckless driving or alcohol but car needs substantial repairs. Insurance company says car not insured because adding alloy wheels invalidated the policy (he had no idea of this when he added them) and also that since he added them he has been driving uninsured. So they have reported him to police for driving while uninsured.

What course of action do you suggest next for him?

ILW

usignuolo wrote: »

I only have outline details but would appreciate advice. My nephew is a chef at a respectable restaurant. His friend is another chef there. Both hard working young men who put in long hours. They are more interested in sport and cars in their limited free time, than reading stuff. Car insurance is expensive for young people in catering and nephew's friend has a hot hatch insurance for £2,200 per year fully comp, arranged via broker. Sometime after he bought it he fitted alloy wheels.

Last month he was in a crash - not sure of details but not reckless driving or alcohol but car needs substantial repairs. Insurance company says car not insured because adding alloy wheels invalidated the policy (he had no idea of this when he added them) and also that since he added them he has been driving uninsured. So they have reported him to police for driving while uninsured.

What course of action do you suggest next for him?

Read policies in the future. The clause about any modifications must be declared is pretty clear.

He probably failed ti disclose other matters as well.

smashingyour...

Well until they tell him the policy is invalid he's insured. Since this wasn't done they would have to pay any third party claim. That's all you need in law so don't worry about the police.

spiro

When you take out car insurance they always ask if there have been any modifications to the car i.e. it is not exactly as it came off the production line. As they have found out is the t&cs state that they must advise the insuance of any modifications once the policy is in place. Harsh as it sound it looks like he is stuffed, but it may depend on what the police do if the insurance do report him. He may be lucky and get away with it but isurance wise he will be stufed for the next 5 years because he will have to declare he has had a policy cancelled.
As to what he can do, sit back and wait to see what happens next. Need to make sure the car is off the road because of the continuous insurance rules the car needs to be SORNed until such time as he can afford to get it fixed and insured again which will be very expensive.

smashingyour...

spiro wrote: »

When you take out car insurance they always ask if there have been any modifications to the car i.e. it is not exactly as it came off the production line. As they have found out is the t&cs state that they must advise the insuance of any modifications once the policy is in place. Harsh as it sound it looks like he is stuffed, but it may depend on what the police do if the insurance do report him. He may be lucky and get away with it but isurance wise he will be stufed for the next 5 years because he will have to declare he has had a policy cancelled.
As to what he can do, sit back and wait to see what happens next. Need to make sure the car is off the road because of the continuous insurance rules the car needs to be SORNed until such time as he can afford to get it fixed and insured again which will be very expensive.

For ever.

antrobus

usignuolo wrote: »

...What course of action do you suggest next for him?

Make a complaint to the FOS.

The FOS regularly deal with complaints regarding an alleged failure to disclose modifications made to a vehicle. Sometimes the customer wins.

https://www.financial-ombudsman.org.uk/publications/ombudsman-news/79/79-motor-insurance.htm

Aretnap

If the insurer has to pay out to a third party they may subsequently coma after him for the money. He'll also have to declare to future insurers not only that the car's modified, but that he's had a policy cancelled. That might end up making £2200 look like a bargain. An expensive lesson, unless the Financial Ombudsman will help.

dacouch

usignuolo wrote: »

I only have outline details but would appreciate advice. My nephew is a chef at a respectable restaurant. His friend is another chef there. Both hard working young men who put in long hours. They are more interested in sport and cars in their limited free time, than reading stuff. Car insurance is expensive for young people in catering and nephew's friend has a hot hatch insurance for £2,200 per year fully comp, arranged via broker. Sometime after he bought it he fitted alloy wheels.

Last month he was in a crash - not sure of details but not reckless driving or alcohol but car needs substantial repairs. Insurance company says car not insured because adding alloy wheels invalidated the policy (he had no idea of this when he added them) and also that since he added them he has been driving uninsured. So they have reported him to police for driving while uninsured.

What course of action do you suggest next for him?

If there was a policy in force at the time of the accident and they subsequently voided the police he cannot in the circumstance you describe be prosecuted for driving without Insurance.

When did he arrange cover?

How did he buy it eg on line, over the phone or face to face?

What EXACTLY does the application say about modifications?

What exactly in the policy does it say about notifying them of changes in his circumstances and specifically about notifying on modifications

Ultrasonic

This situation does sound a little harsh on the OP's nephew. Were the alloy wheels of the same size as the originals? If they weren't going to change the handling of the car it wouldn't have made the car any more likely to be involved in an accident (although it would probably have been at increased risk of theft). The insurance company may of course argue that their actuaries tell them that the sort of driver that would pay lots of money to add alloy wheels to a car is more likely to be involved in an accident though, which is why not disclosing this is an issue. I'd be interested in what the FOS may have to say about a case like this though.

usignuolo

Need to check back with nephew but he thinks it that in fact it came with the alloy wheels already fitted when he bought it which is why he did not declare them. Don't know yet if they were factory standard or fitted by previous owner (or if there was a previous owner as I think there was.) He does not want the alloy wheels replaced in any case just the car repaired. I can see alloy wheels might increase chance of theft but do they also increase chance of accident?

I just bought a second hand Skoda, quite new. Has it got alloy wheels, haven't a clue?

custardy

usignuolo wrote: »

I only have outline details but would appreciate advice. My nephew is a chef at a respectable restaurant. His friend is another chef there. Both hard working young men who put in long hours. They are more interested in sport and cars in their limited free time, than reading stuff. Car insurance is expensive for young people in catering and nephew's friend has a hot hatch insurance for £2,200 per year fully comp, arranged via broker. Sometime after he bought it he fitted alloy wheels.

Last month he was in a crash - not sure of details but not reckless driving or alcohol but car needs substantial repairs. Insurance company says car not insured because adding alloy wheels invalidated the policy (he had no idea of this when he added them) and also that since he added them he has been driving uninsured. So they have reported him to police for driving while uninsured.

What course of action do you suggest next for him?

Its a nice story
I managed for 15 years to stay insured whilst working in 'respectable' kitchens