Warning to those that dont declare mods to insurance

[S2 Ant]

You often get insurance companies saying factory fit options are modifications.

Any change to the car from when it came out of the factory is a modification. Even if you had a GTI with Monzas and decided to go for Pescaras - that's a modification, hence needs to be declared. Ditto for changing halogen headlamps to oem xenons. I heard about one guy getting his insurance voided because there was a sticker - a sticker on the car!

Thinks like Xenons are factory fit tho, so they are fit in the factory, not once its left as its all the associated wiring etc etc to go with it. Dealer fit options you might have more of an argument, but not factory fit.

[yin]

You often get insurance companies saying factory fit options are modifications.

Any change to the car from when it came out of the factory is a modification. Even if you had a GTI with Monzas and decided to go for Pescaras - that's a modification, hence needs to be declared. Ditto for changing halogen headlamps to oem xenons. I heard about one guy getting his insurance voided because there was a sticker - a sticker on the car!

The problem was the insurer canceled policy based on a single post failed to notify the client but kept taking the monthly payments which is just wrong on all counts really

But when you take out a policy, you're meant to pay it off as a lump sum. Eg if your insurance policy for the twelve months comes to £1200, you can pay it off in one go, or you can pay it off in monthly amounts. The latter is essentially financing your premium (which is why the total amount paid would then come to more than £1200).

Imagine you took out a policy for £1200. You paid it off as a lump sum. You then fail to declare say tinted windows. Insurance company finds out five months into the policy and voids your insurance. They don't have to pay you back the remaining seven months' worth of insurance. This doesn't change when you go to monthly payments - you still have to pay off the premium.

Why should they keep taking money after they canceled the policy The broker kept taking the direct debt money several months after the policy was canceled.Client did not know they had not got insurance and was still paying for it.

[vRS Carl]

You often get insurance companies saying factory fit options are modifications.

Any change to the car from when it came out of the factory is a modification. Even if you had a GTI with Monzas and decided to go for Pescaras - that's a modification, hence needs to be declared. Ditto for changing halogen headlamps to oem xenons. I heard about one guy getting his insurance voided because there was a sticker - a sticker on the car!

But if it is placed on at the factory (i.e. car built to order) then how can they say it's not "standard"

At the end of the day they are a business and are out to make money. So they will try anything to get you to pay more. Thankfully we have places like confused.com, comparethemarket.com etc to find the cheapest deal!

[S2 Ant]

If you look at the details of your policy, just because its cancelled doesnt mean you dont owe them money.
Say they cancelled after 8 months, i think by then you'd have been expected to pay the full premium, its not split equally. You're owed pretty much nothing from the full amount after something like 4 months i think. So thats why, he just took the luxury of paying over a longer term thats all

[vRS Carl]

I know someone who tried to be a smartarse and run a heavily modded car on a straight policy. They found out via a forum, cancelled his policy and pretty much blacklisted him in the insurance market as a fraudster.

Nobody is legally bound to insure you, I can see blacklisting being more common soon enough.

Whilst i can understand the rationale behind that i would suggest that will only cause more of a problem. There are enough people on the roads already with no insurance or paying for insurance that is void due to undeclared mods. It wouldn't stop them driving

I see the wider implications, but that's not the insurance company's problem, that belongs to the law.

What would be there problem is him wiping out some city banker in his prime with a few kids and the several million pounds they'd have to pay out.. Every insurance company has the right to sue the policy holder for the money they've paid in a 3rd party claim if they deem the terms of the agreement to have been knowlingly broken.

So, insurer pays out £5m. Insurer finds out you'd been telling porkies. Insurer sues customer and wins (there's been several high profile cases recently and a precedent has been set).

= Customer's life ruined. They'll take every penny you have and will ever earn.. all for the sake of £50 to declare X, Y or Z.

Not saying i don't agree with their thinking. But i think it's a joint Law & insurance responsibility. Insurance companies are just in it to make money. I was once driven into by a bus. The terms of my policy at the time said i had to pay the excess and once any claim was settled i would be re-imbursed. So i did this. Despite the fact that i had 19 witnesess (it happened outside a Tesco), The driver admitting liability and the Bus company admitting liability the insurance co. tried to wrangle out of paying me the excess back. It took me 8 months to get my excess back, which at the time was £1000 as i had chosen a higher excess to lower the premium.

If they didnt charge such ridiculous premiums on young drivers / older cars i personally think the problem would be a lot lower. My Sister when she passed her driving test bought herself a 1.2 fiesta for £1200. Her insurance was £1800 just because she was 17.

It should be law that insurance can not be higher than the value of the car. They either insure you for less or they simply say sorry we can't insure you

But black listing people doesn't stop them paying out sh*tloads in claims. They will still have to pay out when someone who is legally insured get hits by the blacklisted driver.

It will be even worse, using your scenario, if said driver is not insured. Who do they claim it back from then?

[Poverty]

You often get insurance companies saying factory fit options are modifications.

Any change to the car from when it came out of the factory is a modification. Even if you had a GTI with Monzas and decided to go for Pescaras - that's a modification, hence needs to be declared. Ditto for changing halogen headlamps to oem xenons. I heard about one guy getting his insurance voided because there was a sticker - a sticker on the car!

Thinks like Xenons are factory fit tho, so they are fit in the factory, not once its left as its all the associated wiring etc etc to go with it. Dealer fit options you might have more of an argument, but not factory fit.

agreed, not sure why some people tell their insurance co their car has recaro bucket seats and subsequently allow themselves to get shafted for a modification that isnt one.

If you crash your car, all the bodyshop will do is check the parts number and replace like for like.

[Richn83]

You often get insurance companies saying factory fit options are modifications.

Any change to the car from when it came out of the factory is a modification. Even if you had a GTI with Monzas and decided to go for Pescaras - that's a modification, hence needs to be declared. Ditto for changing halogen headlamps to oem xenons. I heard about one guy getting his insurance voided because there was a sticker - a sticker on the car!

The problem was the insurer canceled policy based on a single post failed to notify the client but kept taking the monthly payments which is just wrong on all counts really

But when you take out a policy, you're meant to pay it off as a lump sum. Eg if your insurance policy for the twelve months comes to £1200, you can pay it off in one go, or you can pay it off in monthly amounts. The latter is essentially financing your premium (which is why the total amount paid would then come to more than £1200).

Imagine you took out a policy for £1200. You paid it off as a lump sum. You then fail to declare say tinted windows. Insurance company finds out five months into the policy and voids your insurance. They don't have to pay you back the remaining seven months' worth of insurance. This doesn't change when you go to monthly payments - you still have to pay off the premium.

Quite correct Stealth in that case the guy had chosen to pay his premium in monthly instalments, he isnt paying monthly for insurance he is paying of finance for a lump sum over a defined period, so if he voided the insurance then he still has to pay the agreed premium which he was lucky they were still taking in monthly instalments and not the remainder in a lump sum.

I would have to say that changing one set of manufacturer and model homogenated parts, for instance wheels isn't a modification as long as they meet the manufacturer specification for the car, and dealer fit parts also unless they alter the performance of the vehicle.  As your then talking mudflaps roof bars etc I could understand the potential for an insurance company to consider this bearing in mind what we have recently seen with winter tyres but a sticker is ridiculous or all national trust members would be having issues!  

[vRStu]

agreed, not sure why some people tell their insurance co their car has recaro bucket seats and subsequently allow themselves to get shafted for a modification that isnt one.

If you crash your car, all the bodyshop will do is check the parts number and replace like for like.

Elephant specifically ask if you have factory options.  Failure to declare is entirely what this thread is about.

[Richn83]

agreed, not sure why some people tell their insurance co their car has recaro bucket seats and subsequently allow themselves to get shafted for a modification that isnt one.

If you crash your car, all the bodyshop will do is check the parts number and replace like for like.

Elephant specifically ask if you have factory options.  Failure to declare is entirely what this thread is about.

Thats a different situation if they ask, most dont and from a legal stand point if they dont ask you then you dont have to voluntarily declare, unless you modify during a policy period.  The onus is on the insuring party to request all relevant information before offering insurance. (this is from an under-writer I know who works on the Lloyds exchange.  So if they dont ask for factory equipment then they wont load it into there model and it wont be a requirement of your insurance.  You will obviously have to prove they were on the car but that should be easy enough form the charred remains 

[vRS Carl]

Thats a different situation if they ask, most dont and from a legal stand point if they dont ask you then you dont have to voluntarily declare, unless you modify during a policy period.  The onus is on the insuring party to request all relevant information before offering insurance. (this is from an under-writer I know who works on the Lloyds exchange.  So if they dont ask for factory equipment then they wont load it into there model and it wont be a requirement of your insurance.  You will obviously have to prove they were on the car but that should be easy enough form the charred remains  

So say you have bought a modified vehicle secondhand. You ring up for insurance and they dont ask if the vehicle is modified. Using your theory you don't tell them. You then have a crash and make a claim. The insurance company then finds the car is modified......

I wonder if you would get paid out?

Me thinks not. As the saying goes - Ignorance is no defence in law.

[tony_danza]

Not saying i don't agree with their thinking. But i think it's a joint Law & insurance responsibility. Insurance companies are just in it to make money. I was once driven into by a bus. The terms of my policy at the time said i had to pay the excess and once any claim was settled i would be re-imbursed. So i did this. Despite the fact that i had 19 witnesess (it happened outside a Tesco), The driver admitting liability and the Bus company admitting liability the insurance co. tried to wrangle out of paying me the excess back. It took me 8 months to get my excess back, which at the time was £1000 as i had chosen a higher excess to lower the premium.

If they didnt charge such ridiculous premiums on young drivers / older cars i personally think the problem would be a lot lower. My Sister when she passed her driving test bought herself a 1.2 fiesta for £1200. Her insurance was £1800 just because she was 17.

It should be law that insurance can not be higher than the value of the car. They either insure you for less or they simply say sorry we can't insure you

But black listing people doesn't stop them paying out sh*tloads in claims. They will still have to pay out when someone who is legally insured get hits by the blacklisted driver.

It will be even worse, using your scenario, if said driver is not insured. Who do they claim it back from then?

In terms of it being a joint problem, then it already is, they insurers contribute to a pot to pay out when uninsured drivers cause problems - so that £5m is spread between a lot of people, you and me included.

In terms of my scenario, the person at fault may actually be better off as they'll get the weight of the law for not being insured but they'll possibly limit or even remove the risk of being sued for the compensation??

For the other part, then it should be the Aussie system (I'm sure some others have it too) of the Rego and everyone automatically having 3rd party insurance.

[Poverty]

agreed, not sure why some people tell their insurance co their car has recaro bucket seats and subsequently allow themselves to get shafted for a modification that isnt one.

If you crash your car, all the bodyshop will do is check the parts number and replace like for like.

Elephant specifically ask if you have factory options.  Failure to declare is entirely what this thread is about.

Thats a different situation if they ask, most dont and from a legal stand point if they dont ask you then you dont have to voluntarily declare, unless you modify during a policy period.  The onus is on the insuring party to request all relevant information before offering insurance. (this is from an under-writer I know who works on the Lloyds exchange.  So if they dont ask for factory equipment then they wont load it into there model and it wont be a requirement of your insurance.  You will obviously have to prove they were on the car but that should be easy enough form the charred remains 

in vags there is a number somewhere stored on the car which tells the dealer which options the car left the factory with.

agreed, not sure why some people tell their insurance co their car has recaro bucket seats and subsequently allow themselves to get shafted for a modification that isnt one.

If you crash your car, all the bodyshop will do is check the parts number and replace like for like.

Elephant specifically ask if you have factory options.  Failure to declare is entirely what this thread is about.

Well if the specifically ask then that is another matter. Are they still competitive once they have done that?

Does anyone know if the admiral/elephant group are going to stop taking on drivers under the age of 21 btw?

Thats a different situation if they ask, most dont and from a legal stand point if they dont ask you then you dont have to voluntarily declare, unless you modify during a policy period.  The onus is on the insuring party to request all relevant information before offering insurance. (this is from an under-writer I know who works on the Lloyds exchange.  So if they dont ask for factory equipment then they wont load it into there model and it wont be a requirement of your insurance.  You will obviously have to prove they were on the car but that should be easy enough form the charred remains  

So say you have bought a modified vehicle secondhand. You ring up for insurance and they dont ask if the vehicle is modified. Using your theory you don't tell them. You then have a crash and make a claim. The insurance company then finds the car is modified......

I wonder if you would get paid out?

Me thinks not.

Factory options arent a modification though or are you talking about something else?

[vRS Carl]

For the other part, then it should be the Aussie system (I'm sure some others have it too) of the Rego and everyone automatically having 3rd party insurance.

I'd be happy with that system and you just pay extra to have fully comp

[MAT ED30]

i got hit in my scooby about 7 months ago and found out the guy was not insured   any way i was with greenlight but i am still waiting for my excess back and also as i ended my policy with them early still waiting to get my money back as i paid upfront for the cover i had. they are quick to take your cash but f ing slow to give it back to you even when its been proved it not your fault  

[vRS Carl]

Factory options arent a modification though or are you talking about something else?

I know that i was referring to the "if you aren't asked you don't have to tell". I have always told my insurers of any factory fit options and they usually say that factory fit stuff is fine.