Warning: your towbar could invalidate your car insurance

[ProfJohnL]

Things are not so easy as that. If you are in possession of a complete list of all regular production options that were applied during the build of your car you will find that it contains a whole host of items that you may have considerd as standard but which, as far as the manufacturer is concerned, are actually regular production options, but they are mandatory.

The complete list for my BMW is a two page build schedule of RPO's, including items such as 6-way power seats with memory function, sat nav, air conditioning, even the type of surface finish of the interior brightwork (brushed aluminium),

That may well be the case, but until there is clarity from the insurers about what constitutes a "modification" about which they want to know, how is the ordinary motorist to know what to do?

That is why I have suggested listing any options the purchaser has opted for as a starting point. We should be able to assume the insurers have the means based on the vehicles VIN number to be able to establish what the "Standard" model is.

 

[Lutz]

That may well be the case, but until there is clarity from the insurers about what constitutes a "modification" about which they want to know, how is the ordinary motorist to know what to do?

That is why I have suggested listing any options the purchaser has opted for as a starting point. We should be able to assume the insurers have the means based on the vehicles VIN number to be able to establish what the "Standard" model is.

Fair enough, but all I wanted to point out is that the manufacturer may have a different understanding of what is a "standard" model to the customer and again to the insurance company.

It's so much easier over here on the Continent. The insurance company must honour whatever is specified in the type approval Certificate of Conformity for the insured vehicle. Anything which changes the specification as laid out in that certificate is a modification and the insurer must be informed. Any change to the vehicle which does not have a bearing on what is specified in the certificate is not a notifiable modification.

 

[RogerL]

That may well be the case, but until there is clarity from the insurers about what constitutes a "modification" about which they want to know, how is the ordinary motorist to know what to do?

That is why I have suggested listing any options the purchaser has opted for as a starting point. We should be able to assume the insurers have the means based on the vehicles VIN number to be able to establish what the "Standard" model is.

The VIN number would identify the exact model and build specification to the car maker but not to anyone else - the country market, trim level and engine spec aren't generally coded into the VIN

 

[Dustydog]

See this,
Insurers have woken up and as said previously many not only ask but give examples of a modification that needs disclosure

 

[RogerL]

See this,
Insurers have woken up and as said previously many not only ask but give examples of a modification that needs disclosure

Quote "any kind of alteration to a vehicle that wasn't in the manufacturer's standard specification, or wasn't fitted as an option when the vehicle was manufactured"

According to that, regular production options don't count as a modification!

 

[JTQ]

See this,
Insurers have woken up and as said previously many not only ask but give examples of a modification that needs disclosure

Here I quote from that document "So we don't count tow bars or parking sensors as modifications,"

So, why was that a towbar , even with the hook stowed in the vehicle's boot rather than deployed, ever raised by the insurer as an issue?

Probably because the AA is not accepted by all insurers as a definitive authority to "speak" on car insurance.

 

[ProfJohnL]

Quote "any kind of alteration to a vehicle that wasn't in the manufacturer's standard specification, or wasn't fitted as an option when the vehicle was manufactured"

According to that, regular production options don't count as a modification!

I read that on th e AA site Dusty pointed out, but is that AA specific or is a universal appraisal adopted by all Insurers? That's the rub - you don't know unless your insurance company tells you.

The point really is not to let them have the opportunity to decline a claim or void a policy based on an undeclared modification.

The industry needs to review its intentions in this area and make a clear unambiguous statement or instructions on what does not need to be declared to them.

 

[Dustydog]

I read that on th e AA site Dusty pointed out, but is that AA specific or is a universal appraisal adopted by all Insurers? That's the rub - you don't know unless your insurance company tells you.

The point really is not to let them have the opportunity to decline a claim or void a policy based on an undeclared modification.

The industry needs to review its intentions in this area and make a clear unambiguous statement or instructions on what does not need to be declared to them.

That’s correct
The AA version only concerns the Insurers they deal with such as Covea.

Many other Insurers have this year issued their own guidelines but without any cohesive uniformity within the Industry.

Why you may ask? Simply carelessness or unawareness on the part of some in the Industry who haven’t appreciated the ever changing colour of the disclosure principle.

It’s still best imo to fail safe and disclose everything possibly relevant at each renewal . No hardship, just a few words

 

[Melomania]

Agree that it is better to err on side of caution, but you may be surprised at the number of modern cars that require the towbar to be fitted at the factory due to the electronics in the car. Apparently many fitting companies do not have access to the technology required to fit the electrics for the towbar.

Thanks useful I have just checked with Aviva on line and they identify towbar as a “modification,” post delivery. Which mine is and it made no difference the cost of insurance but does now at least remove the risk.

 

[Buckman]

Surprising how few are escalated from a case worker to an Ombudsman. But still an option. No going back after the escalation

When we rejected our caravan in 2017, the FOS sided with the dealership and it was fairly obvious. It took nearly 3 months to get a decision. I refused to accept the decision and requested it to be escalated. Within less than a month the second tier Ombudsman found in our favour. Perhaps at that stage they were not fully conversant with CRA 2015?

 

[Lutz]

Thanks useful I have just checked with Aviva on line and they identify towbar as a “modification,” post delivery. Which mine is and it made no difference the cost of insurance but does now at least remove the risk.

How does Aviva handle factory fitted towbars then?

 

[ProfJohnL]

How does Aviva handle factory fitted towbars then?

There may be a few exceptions where a towbar is a standard fit, but in most cases its requires the customer to select it as an option, and thus it's a modification to the standard specification.

And its a question that should be asked of all insurers.

 

[Hutch]

I can not remember who my insurer was when I bought my Santa Fe New, with "Factory Fitted" towbar. But when I mentioned it to the insurer they said as it was "Factory fitted" it was not a modification.
The "Factory fit" was done in the dealers workshop using their fitters and a local towbar fitter, it was a Witter tow bar with a Hyundai part Number.

 

[Lutz]

There may be a few exceptions where a towbar is a standard fit, but in most cases its requires the customer to select it as an option, and thus it's a modification to the standard specification.

And its a question that should be asked of all insurers.

Sure, but Aviva specifically referred to post delivery modifications, That would lead one to assume that factory fitted options are not treated as modifications.
If fitment of a towbar is important to the insurance company they should ask whether one is present at the time the policy was taken out. Then, of course, one would be obliged to inform them if a towbar is added later. If one is not asked initially, it should be safe to assume that the towbar is not important.

 

[ProfJohnL]

Sure, but Aviva specifically referred to post delivery modifications, That would lead one to assume that factory fitted options are not treated as modifications.
If fitment of a towbar is important to the insurance company they should ask whether one is present at the time the policy was taken out. Then, of course, one would be obliged to inform them if a towbar is added later. If one is not asked initially, it should be safe to assume that the towbar is not important.

That is broadly how the matter has worked in the past, but with this recent case, it has thrown that assumption open to debate.

 

[Lutz]

That is broadly how the matter has worked in the past, but with this recent case, it has thrown that assumption open to debate.

It seems as though each insurance company does as it pleases, which is their prerogative, but they should at least point out possible pitfalls before one takes out a policy with them.

 

[RogerL]

That is broadly how the matter has worked in the past, but with this recent case, it has thrown that assumption open to debate.

I'm sure I recall that about 10 years ago that either the law or the ABI guidelines were changed so that insurers had to ask any relevant specific questions rather than leaving it to the consumer to know what was relevant and what wasn't.

Simply asking if any modifications, without defining what constitutes a modification doesn't comply with that law/guideline.

 

[Buckman]

I'm sure I recall that about 10 years ago that either the law or the ABI guidelines were changed so that insurers had to ask any relevant specific questions rather than leaving it to the consumer to know what was relevant and what wasn't.

Simply asking if any modifications, without defining what constitutes a modification doesn't comply with that law/guideline.

However nowadays most quotes are probably done Online and sometimes the modification in question can be omitted?

 

[JTQ]

The "Factory fit" was done in the dealers workshop using their fitters and a local towbar fitter, it was a Witter tow bar with a Hyundai part Number.

Surely, that's something of a contradiction, or a novel use of the term "Factory " to embrace the dealer's workshop?
IMO, the general use of the term "factory fit" of options uniquely refers to the factory assembling the vehicle assembles it with the subject option. As opposed to the "dealer fitted" option.

I have just realised I failed to mention I have had the dealer fit front and rear mudflaps along with a full set of rubber mats!

 

[ProfJohnL]

Surely, that's something of a contradiction, or a novel use of the term "Factory " to embrace the dealer's workshop?
IMO, the general use of the term "factory fit" of options uniquely refers to the factory assembling the vehicle assembles it with the subject option. As opposed to the "dealer fitted" option.

I totally agree!

 

[Hutch]

Surely, that's something of a contradiction, or a novel use of the term "Factory " to embrace the dealer's workshop?
IMO, the general use of the term "factory fit" of options uniquely refers to the factory assembling the vehicle assembles it with the subject option. As opposed to the "dealer fitted" option.

I have just realised I failed to mention I have had the dealer fit front and rear mudflaps along with a full set of rubber mats!

I totally agree, but the towbar, mudflaps and front sensors were requested at the time of ordering, so were classified as a " Factory fit". Agreed by the insurance company.

 

[Lutz]

However nowadays most quotes are probably done Online and sometimes the modification in question can be omitted?

If an insurance company fails to include a relevant question in their application form, whether online or not, then they should bear the consequences, not the policyholder.

 

[Lutz]

I totally agree, but the towbar, mudflaps and front sensors were requested at the time of ordering, so were classified as a " Factory fit". Agreed by the insurance company.

If they were classified as factory fit then that was a serious error because the manufacturer cannot be held responsible for such equipment and it wouldn’t fall under the manufacturer’s warranty.

 

[Buckman]

If they were classified as factory fit then that was a serious error because the manufacturer cannot be held responsible for such equipment and it wouldn’t fall under the manufacturer’s warranty.

The "warranty" would be the responsibility of the supplier under CRA 2015 so no issue there.

 

[ProfJohnL]

The "warranty" would be the responsibility of the supplier under CRA 2015 so no issue there.

Just clarify your reference to the "supplier". Did you mean the retailer of the car i.e the dealer?