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General Insurance And Modifications

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General Insurance And Modifications

OrangeSport

OrangeSport

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A cautionary post, for anyone who doesn't consider that all changes to your car are worth mentioning.

I have spent some time over Christmas sorting out quotes for the insurance on my new A500. It has three factory fitted upgrades; white stripes and mirrors, darker rear 3/4 windows and leather interior trim.

The online tools usually didn't allow these to be added anywhere, so I have been getting a price then calling to see what it is including these. Some companies made no extra charge, most increased the premium by 10-20% with a higher excess and one refused to cover a car with these options! I suspect many people wouldn't bother mentioning non-performance upgrades, especially stickers, but it just goes to show you.

I know somebody whose car was recently trashed, and he can't get any payout as he hadn't mentioned the extra instrument panel he had added to it (despite the engine and suspension upgrades he had mentioned).

Best to play it safe and not give them a chance to wriggle out of a payout.
 
You Said "Factory Fitted"

If they are factory fitted you do not need to declare them as they are classed as a standard feature,

If its on the sales invoice at New then the insurer quotes on it based on the car model sold.

You would declare anything done after leaving the factory of course.
 
Not really. There are so many options available that two new cars if the same model can vary drastically in price and handling etc. I think you would risk not being fully covered.

Remember, one company who quoted me a price then refused to cover me when I mentioned the options. Another increased the quote and doubled the excess as the white stripes made the car more desirable to thieves, according to them.

What would have happened if I didn't mention these and they came to light during a claim? Most policies are very clear about mentioning modifications. They are not so clear about what those might be.
 
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Just because an insurance company says something doesn't mean it's true. A few years ago some would claim nit to cover you for winter tyres.....
 
That I don't know. I do know I would rather be sure that my car is fully covered.

It makes sense really, especially with the amount of options available now. I would hate to end up as my brother in law has. Car wrecked. No payout. The company just keep pointing to the clause stating that all modifications which deviate from the manufacturer's standard specification must be declared.

I have always listed everything, on every car. I just did it all on the phone before, rather than doing on-line quotes then calling to discuss the options. So, I have never seen the actual difference the options make to the premiums before.

I guess if you don't think they need mentioning then make sure you don't. If you think you'll still be covered then there's no need to up the price for the same cover. But I wouldn't take that route to save a few quid.
 
When I spoke to Arriva when I first insured the 500 I mentioned the leather seats they weren't bothered as they were a factory option.
 
flashyphotos said:
You Said "Factory Fitted"

If they are factory fitted you do not need to declare them as they are classed as a standard feature,

If its on the sales invoice at New then the insurer quotes on it based on the car model sold.
Click to expand...

You are in fact incorrect.

A standard car is as it comes with NO optional extras, regardless of if the optional extra is factory fitted, dealer fitted, or DIY fitted.

A car is insured based upon it being the model spec'ed - a base model pop for example. Lets say this car is worth £7k new. This is what an insurance company will be indemnifying you for (regardless of a figure you give them). If you've £500 alloys, £500 sunroof and £250 rear parking sensors, all factory fitted, your £7k car is now needing indemnification for the sum of £8250.

A lot of decent insurance companies will be fine wil factory fitted 'options' which modify the vehicle from being standard. However with the crappier insurance companies this is not always the case so you always need to check when changing insurance!

306maxi said:
When I spoke to Arriva when I first insured the 500 I mentioned the leather seats they weren't bothered as they were a factory option.
Click to expand...

I assume you mean Aviva :p

Indeed I'm insured with them, and they are not bothered if you've factory fitted extra's, but then again you get what you pay for with insurance. Those who always go for cheapest are always working under a false pretensis IMO.
 
Most Easterly Pandas said:
You are in fact incorrect.

A standard car is as it comes with NO optional extras, regardless of if the optional extra is factory fitted, dealer fitted, or DIY fitted.

A car is insured based upon it being the model spec'ed - a base model pop for example. Lets say this car is worth £7k new. This is what an insurance company will be indemnifying you for (regardless of a figure you give them). If you've £500 alloys, £500 sunroof and £250 rear parking sensors, all factory fitted, your £7k car is now needing indemnification for the sum of £8250.

A lot of decent insurance companies will be fine wil factory fitted 'options' which modify the vehicle from being standard. However with the crappier insurance companies this is not always the case so you always need to check when changing insurance!



I assume you mean Aviva :p

Indeed I'm insured with them, and they are not bothered if you've factory fitted extra's, but then again you get what you pay for with insurance. Those who always go for cheapest are always working under a false pretensis IMO.
Click to expand...

Agreed on Insured Value & Payouts,

But what the OP said was that the Factory options would invalidate any payout which is not correct,

The Insurer would be obliged to payout although as you state may well base the payout on the "Standard" Published Book value of the vehicle.

FSA Guidelines are clear that Factory Fitted Options (Defined as options appearing listed on the original bill of sale when new) cannot invalidate the payout of a policy on the grounds that the vehicle has been "Modified"
 
flashyphotos said:
But what the OP said was that the Factory options would invalidate any payout which is not correct,
Click to expand...

I said could, not would. If they consider it increases the chance of theft, or suggests that the driver is a higher risk, but haven't adjusted the premium appropriately they might have a case. Granted, optional air con might be irrelevant if you crash. But, if you have a single car crash and you had bigger alloys, stripes and a body kit they could reasonably say that those upgrades would have been an indication as to the type of driver you might be and they would have charged you more. Given you have then effectively proved them correct, by tarting up your car then stuffing it, you will be one back foot trying to get paid. Exactly the position my brother in law is in.

Still, it's just advice. We're all old enough to make our own decisions.
 
OrangeSport said:
I said could, not would. If they consider it increases the chance of theft, or suggests that the driver is a higher risk, but haven't adjusted the premium appropriately they might have a case. Granted, optional air con might be irrelevant if you crash. But, if you have a single car crash and you had bigger alloys, stripes and a body kit they could reasonably say that those upgrades would have been an indication as to the type of driver you might be and they would have charged you more. Given you have then effectively proved them correct, by tarting up your car then stuffing it, you will be one back foot trying to get paid. Exactly the position my brother in law is in.

Still, it's just advice. We're all old enough to make our own decisions.
Click to expand...

Could Would - Either are irrelevant - They CANNOT refuse to payout on the grounds the car has factory fitted options, It is a breach of FSA Regulations on "Treating Customers Fairly".

In your original post you mentioned the person had fitted an "Extra Instrument Panel", themselves. That of course is not a "Factory Fitted Extra" and would most definitely be leaving the insurer open to non payment of a claim, you seem to be confusing the difference between Factory Fitted and Owner Fitted Accessories.

My advice based on previous employment 5 years as Team Leader of Out Of Hours Emergency Claims Handling for LV, and currently Part Time Forensic Claims Investigation For Avertis & Ivalidate
 
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flashyphotos said:
Agreed on Insured Value & Payouts,

But what the OP said was that the Factory options would invalidate any payout which is not correct,

The Insurer would be obliged to payout although as you state may well base the payout on the "Standard" Published Book value of the vehicle.

FSA Guidelines are clear that Factory Fitted Options (Defined as options appearing listed on the original bill of sale when new) cannot invalidate the payout of a policy on the grounds that the vehicle has been "Modified"
Click to expand...

Where have you seen this FSA guideline out of interest? and what happens if your not the first registered owner with the origional bill of sale, or if your the first owner who has lost it?

Explain how your theory works with the insurance principle of contribution (I believe it's under this but will check) where if your under insuring yourself by a certain amount (percentage) and as such paying a lesser premium than you should be to indemnify yourself correctly the insurance company can choose to settle the claim less this percentage.

In which case it won't be £7k your paid out, but actually only around £5,740 as you've under insured yourself by around 18%!

EDIT: it's not the principle of contribution, but infact the not so well known rule of 'average'.
 
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flashyphotos said:
Could Would - Either are irrelevant - They CANNOT refuse to payout on the grounds the car has factory fitted options, It is a breach of FSA Regulations on "Treating Customers Fairly".
Click to expand...

Care to explain how this wouldn't be treating customers fairly? Treating customers unfairly is treating two customers differently when you shouldn't be. Not paying out due to none disclosure isn't 'not treating customers fairly'.
 
Well, the paperwork always warns you may not be covered if you don't come clean, but if you're happy to risk it then that's your choice.

I happen to disagree with your interpretation, have seen at least one example of seemingly inconsequential upgrades voiding a policy and its associated payout and I wouldn't take that chance.

Even if I agreed with you, I would still want to be sure that the car was covered to replace the options anyway. I couldn't live with a cloth interior (y)

Cheers.
 
I would agree with MEP as someone who has done a bit of FSA training :)

I believe that it would be wrong for an insurance company not to pay out like that, but it wouldn't come under treating customers fairly.
 
flashyphotos said:
My advice based on previous employment 5 years as Team Leader of Out Of Hours Emergency Claims Handling for LV, and currently Part Time Forensic Claims Investigation For Avertis & Ivassure
Click to expand...

Am pretty sure it was LV who refused to cover the car once the options were mentioned, despite giving me a quote for a standard car.
 
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