Modifications & Insurance

[NJS5]

I have two heavily modified cars, an MGB GT V8 and an MGA Convertible. My insurers have been advised in writing of the modifications & I pay an increased premium as a result.

I have minor mods to my SL350, and LR Discovery 4 which have been declared & have not resulted in any adjustment of premium; things like non-standard wheels etc..

I have read a number of posts, on various forums, by people who have modified their cars, and have not notified their insurers.

I don’t want to preach, but am concerned that a number of people might be inadvertently generating big problems for themselves.

My advice, quite simply declare every modification, in writing, before doing them.

If you have undeclared mods on your car, declare them NOW!

Some quotes below:-

“UK law specifies that if your car has been modified, you must declare the changes to your insurer, even if you didn’t make the changes yourself. If you don’t, your insurance could be invalidated.”

Source: https://www.adrianflux.co.uk/blog/2022/06/how-popular-modifications-affect-your-car-insurance/

“If you don’t tell us about any modifications, your policy will be declared void and any claims that you may have made will not be paid out. So, you must let us know before you get any modifications done.”

Source: https://www.axa.co.uk/car-insurance/tips-and-guides/do-car-modifications-affect-my-insurance/

“You have a legal requirement to declare your modified car to your insurance provider in the UK.”

Source: https://goshorty.co.uk/blog/what-modifications-affect-car-insurance/

Good luck!

NJSS

 

[Blobcat]

Couldn’t agree more, my Landy is also heavily modified and insurance is aware and all included in premium.

It’s not exactly hard to notify, you can do it in any of the compare the money supermarket confused dot gone sites - there’s a button and you then just detail them out.

As a note even stickers can count… so if you “amg” badge your car you’ve made it more desirable to tea leaves… I’ve not read (I’ve not looked for either) any evidence of insewerance companies not paying out… however my experience is that they’ll do everything they can not to pay, so don’t give them the excuse is my recommendation.

 

[mioba]

It makes total sense to notify the insurer.
They go by vin if ordering parts when in accident, So if you mod your wheels you would get what the car came with, so your loss. That said you play into their hands not informing of mods - they will just refuse your claim and you are screwed.
There is a reason this question is always asked at renewal time.

 

[EmilysDad]

It makes total sense to notify the insurer.
They go by vin if ordering parts when in accident, So if you mod your wheels you would get what the car came with, so your loss. That said you play into their hands not informing of mods - they will just refuse your claim and you are screwed.
There is a reason this question is always asked at renewal time.

but if your second hand Merc came with different Merc wheels that the previous owner had fitted, how would you know whether those particular wheels were factory fitted or not?

 

[EmilysDad]

As a note even stickers can count… so if you “amg” badge your car you’ve made it more desirable to tea leaves… I’ve not read (I’ve not looked for either) any evidence of insewerance companies not paying out… however my experience is that they’ll do everything they can not to pay, so don’t give them the excuse is my recommendation.

so I wasn't insured when I had 3.0 V6 badges on my MKIII Cortina ....

 

[rf065]

but if your second hand Merc came with different Merc wheels that the previous owner had fitted, how would you know whether those particular wheels were factory fitted or not?

Was there not an ombudsman communication to the insurance industry a few years ago that stated they could not refuse an insurance claim if someone has incorrectly filled out their insurance application due to them not knowing the correct answer to the question? Pretty sure I remember them being told that most people do not know the full history of the car they drive and cannot be held responsible for answering any question with as much honesty as they can?

 

[ianplymouth]

i have a modified car (or two) the only time the premium goes up is with power modifications, the rest they want to know abou,t suspension, brake upgrades etc etc etc doesn't add anything.

My power is up from 230hp to 400hp i pay over £450 for that, my SL55 is standard apart from the wheels and thats £189, go figure

 

[Srdl]

As a note even stickers can count… so if you “amg” badge your car you’ve made it more desirable to tea leaves… I’ve not read (I’ve not looked for either) any evidence of insewerance companies not paying out… however my experience is that they’ll do everything they can not to pay, so don’t give them the excuse is my recommendation.

I'm sure I read sometime ago that an insurance company refused to pay out on a claim because photographs of the damage showed floral stickers on the car and they decided that was an undeclared modification (presumably because it might distract other road users and therefore increase risk?)

I also read that a modification is anything that changes performance or appearance of the car,

 

[mioba]

but if your second hand Merc came with different Merc wheels that the previous owner had fitted, how would you know whether those particular wheels were factory fitted or not?

Well the insurance co ask the question. Therefore one should be prudent to check based in the vin. The insurance co will say we asked you any modifications - Y or N, there is no I dont know option.

 

[EmilysDad]

Well the insurance co ask the question. Therefore one should be prudent to check based in the vin. The insurance co will say we asked you any modifications - Y or N, there is no I dont know option.

my answer is generally along the lines of ... "not as far as I know"

I replaced a 84bhp Smart with AN Other 84bhp Smart ..... they both had different wheels, AFAIKN that's down to the models ..... but I've not looked at any build sheets to know one way or t'other ... & I won't be

 

[rf065]

Well the insurance co ask the question. Therefore one should be prudent to check based in the vin. The insurance co will say we asked you any modifications - Y or N, there is no I dont know option.

I alluded to this in reply number 6, the law changed on 6th April 2013, so from then on The Consumer Insurance (Disclosure and Representation) Act 2012 (CIDRA) takes precedent.
Amongst other things it says, "
Prior to CIDRA, if a consumer had either given incorrect information or failed to disclose something important to an insurer when applying for insurance, the insurer could “avoid” the policy (effectively cancelling the policy and treating it as if it had never existed). A heavy burden rested on the consumer (who had a duty of “utmost good faith” towards the Insurer) to disclose to an insurer all material facts. This duty was particularly onerous for unadvised individuals who purchased insurance directly from an insurer or through, for example, price comparison websites without the assistance of a broker.

CIDRA replaced this onerous burden with a new “duty to take reasonable care not to make a misrepresentation”. The effect was that a consumer was no longer obliged to volunteer information to an insurer, but rather to take care not to answer any of the insurer’s questions incorrectly.
The bottom line for individuals who have had a claim declined is that it is not enough for an insurer to establish that an incorrect answer was given to it when the policy was simplywritten – under CIDRA, that is only the first hurdle the insurer needs to overcome.

The insurer must also prove that the consumer failed to take “reasonable care” when making the misrepresentation and that, if the correct information had been given, the insurer would either not have written the policy on any terms at all, or would have written it on different terms or with a different premium. A misrepresentation which would have caused the insurer to act differently is referred to in CIDRA as a “qualifying misrepresentation”.
Alternatively, In order to avoid the policy and retain the premium, the insurer will need to show that the consumer acted deliberately or dishonestly in making a misrepresentation."

 

[Larkone]

When I was asked if there had been any mods to my wife's car (mine is modded and declared) I answered 'Not to my knowledge' which prompted the response - 'very good answer sir'

 

[fabes]

And that's a quandary.
We know some cars are modified.
I'd expect some do not declare something like a modest stage 1 map....

Unless you Dyno them or have a reference, rinsed through the part exchange network, to the best of yours and the dealers knowledge you have no way of knowing....

 

[rf065]

And that's a quandary.

There is no quandary, if you don't know and there is no reason that you should know, then you cannot be held liable for giving the wrong answer or be accused of trying to cheat the system. That's the law.

 

[rorywquin]

Well the insurance co ask the question. Therefore one should be prudent to check based in the vin. The insurance co will say we asked you any modifications - Y or N, there is no I dont know option.

You can always phone their customer help line to discuss and confirm.

 

[rorywquin]

i have a modified car (or two) the only time the premium goes up is with power modifications, the rest they want to know abou,t suspension, brake upgrades etc etc etc doesn't add anything.

My power is up from 230hp to 400hp i pay over £450 for that, my SL55 is standard apart from the wheels and thats £189, go figure

Perhaps they expect something to go seriously wrong with a car designed for 230hp running 400hp.