Car Insurance Modification Advice....

cutebabe01

Hi all,

I own a Renault Clio, the RenaultSport 182 version and have a query.

I bought the car from new and when choosing the colour etc I picked to have the Clio Cup Suspension pack.

Basically I bought the 182 and had the 182 cup pack put on (dark alloy wheels (same alloys as the 182) and stiffened suspension)

This was a garage optional exta, however do I need to declare this as a modification?

When i do it puts up my premium by £50.

Thanks in advance for your advice

:A

olly300

The alloy wheels are an optional extra so are not standard.

Therefore you have to declare it if asked.

BTW I'm in the same boat with a different car.

nickmack

olly300 wrote: »

Therefore you have to declare it if asked.

Not just if asked, you should declare anything that may affect the policy/premium if you're asked or not. Failure to do so may affect any claim.

olly300

nickmack wrote: »

Not just if asked, you should declare anything that may affect the policy/premium if you're asked or not. Failure to do so may affect any claim.

The majority of the population don't work in insurance so will be unable to know what things would affect their insurance premiums therefore they can only answer questions that are asked particularly if using application forms on the internet.

"For us to conclude that a consumer's non-disclosure or misrepresentation when applying for a policy was reckless rather than inadvertent, we must be satisfied from all the evidence (including that relating to any conversation, marketing documentation, other advice or paperwork available at the time to the consumer), that in answer to a clear question the consumer:

• did not care whether their answer was true or false and
• understood, if only in a limited way, that an answer was required, that it was important to the insurer and that there was a consequence to it."

financial ombudsman news letter issue 61 "insurance case studies- non-disclosure reckless or inadvertent?" http://www.financial-ombudsman.org.uk/publications/ombudsman-news/61/61-insurance.htm

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

cutebabe01

olly300 wrote: »

The alloy wheels are an optional extra so are not standard.

Therefore you have to declare it if asked.

BTW I'm in the same boat with a different car.

I understand that but they are the same alloy as on the standard version just coloured charcoal.

nickmack

olly300 wrote: »

The majority of the population don't work in insurance so will be unable to know what things would affect their insurance premiums therefore they can only answer questions that are asked particularly if using application forms on the internet.

Which is why insurers say you should inform them of any changes to circumstances and they will decide.

Some of the insurance cases in the link you quote are fair enough, but in the case of alloy wheel modifications, it's a no brainer. This is a material fact and the OP appears to know it affects the premium and probably why.

With regard to internet applications, most state that a quote can only be obtained if certain criteria are met. One of these is often that it is not modified from the manufacturers specification.

With insurance it's always better to go on the side of caution. I'd much rather declare and know I'm covered than risk having a claim rejected when you need it most.

olly300

nickmack wrote: »

Some of the insurance cases in the link you quote are fair enough, but in the case of alloy wheel modifications, it's a no brainer. This is a material fact and the OP appears to know it affects the premium and probably why.

The OP has asked the same question twice which indicates they don't understand or are refusing to understand.

nickmack

olly300 wrote: »

The OP has asked the same question twice which indicates they don't understand or are refusing to understand.

You and I have both said it should be declared, the OP has obviously considered it and got a quote on that basis. The fact they're asking the question means they're unsure. In my book, when it comes to insurance, any doubt and you refer it to the insurer.

If they choose not to go ahead and declare it, then it's their lookout. The consequences could be nothing or they could be very serious. Personally, I don't think it's worth the risk.

cutebabe01

olly300 wrote: »

The OP has asked the same question twice which indicates they don't understand or are refusing to understand.

Im not refusing to understand anything.

I was simply making sure ppl understood they were the same size and model of wheel just coloured differently.

Whats with all the bold?

I have added these mods and have done so for the past 2 yeras, however as this is a moneysaving site I figured if I didnt need to splash out the extra £50, I wouldnt.

We can't Mr Know-it-all, UK brains of Britain Award Winner 2007

In future try being polite.

Lets hope you never need any advice.

Thanks to eveeryone else
:A

olly300

cutebabe01 wrote: »

Im not refusing to understand anything.

If you ask the same question twice it indicates you either don't understand the answer or are refusing to understand the answer.

I was simply making sure ppl understood they were the same size and model of wheel just coloured differently.

So you don't understand the answer

Whats with all the bold?
Emphasis to enable other posters to help you understand the answer to a question you have asked more than once.

I have added these mods and have done so for the past 2 yeras, however as this is a moneysaving site I figured if I didnt need to splash out the extra £50, I wouldnt.

It may be a moneysaving site but you will find it rare that anyone will tell you to break laws, be untruthful or breach contracts without good reason.

We can't Mr Know-it-all, UK brains of Britain Award Winner 2007

In future try being polite.

So you are taking this personally and now I feel you are trying to insult me. You should note the internet is anonymous so people are not what they seem.

Lets hope you never need any advice.



Thanks to eveeryone else
:A

Oh I've got good advice from many boards here.

vikingaero

I've had the misfortune to work for an insurance company for a number of years. In my 6 month placement in motor insurance I can state that technically you need to notify the insurer of any modification to the insured vehicle. New stripes? - notify them. New alloys? - notify them. In reality a lot of people heavily mod their cars and many will only declare substantial modifications and leave out the minor cosmetic details.

Insurers normally cover themselves with a standard phrase/question that says something like:

"Has the vehicle been modified from the manufacturers standard specification?"

That means that the risk they are taking on is the bog standard plain jane model that you're trying to insure. If you add on factory modifications then most insurers will want to know. Adding say, air con, will mean that the model will no longer conform to the "manufacturers standard specification". Conversely some insurers will insure cars with factory options as a standard vehicle and tailored insurance companies (for example the branded MINI Insurance for MINI owners) may well cover dealer options too as standard. It's a real minefield and therefore in your utmost interest to declare anything that may materially affect the risk.

In addition Insurers do discriminate when they pay out claims: A 40 something married professional with 2.2 kids and a dog will be unlikely to have his claim refused if he hadn't declared the engine chipping conversion on his BMW. A 18 year old single male in his Peugeot 106 with an undeclared bodykit is likely to have his claim refused in the event of a theft.

Also beware of companies such as the Admiral Group (Admiral, Elephant, Hastings, Bell Direct) etc. Admiral Group have a "Standard Parts Replacement Clause" in which they will only pay out to return your car to standard. Lets say you have a Throbster WRX. The Throbster WRX comes with steel 15 inch wheels as standard but you opt for the factory fitted 22 inch option. Then you mangle the WRX and one of the 22" wheel needs to be replaced. With Admiral, they are within there rights to invoke the Standard Parts Replacement Clause and only supply you with the 15" steel wheel even though you declared the 22" wheels AND paid an additional premium to cover them! So you'll have 3 x 22" wheels and a brand new 15" steel wheel on your Throbster!

Finally a less than savoury incident that I encountered. Although extreme it does illustrate how one mad moment can change your life. I read the case file of a driver of a Subaru Impreza WRX that we insured. He insured the car as a bog standard WRX. Over the years he tricked it out to produce stupid amounts of power and never declared them. He did a risky overtake and wiped out an oncoming motorist. There were a few professional witnesses (lorry drivers and coach drivers). When the vehicle was inspected it was found to be completely different to a bog standard car. There was no chance of him even returning the car back to base spec as he was lying in hospital too. The insurer withdrew cover for his car and had to pay out £1.2m to compensate the dead motorists family. In addition to having no car, no payout to replace the car, a Police investigation and a Court appearance for dangerous driving he was sued by the Insurer to recover their costs and payout. Result: Bye bye house.