Hundreds of thousands of drivers could be invalidating insurance by having this common feature fitted to their car…

Drivers may very well be prone to invalidating motor insurance coverage by not declaring their automotive is fitted with a standard function that tons of of hundreds of autos have.

Automotive homeowners are being offered unclear data when shopping for cowl by way of comparability web sites, with the favored function typically hidden in high quality print or a part of vaguely worded steerage relating to what constitutes a modification when finishing an internet quote.

The merchandise in query is a tow bar.

Whereas there isn’t any actual determine for the variety of UK vehicles with one put in, the Caravan and Motorhome Membership’s a million members – and the quantity of people that have to tow horseboxes and boats – suggests there are tons of of hundreds on the highway.

Auto Categorical mentioned it had been contacted by a motorist who was left with a six-figure invoice when his insurer refused to pay out on a declare and cancelled his coverage as a result of he had not listed his automotive’s tow bar as a ‘modification’ when operating a quote by way of comparability web site Cash Tremendous Market.

There are actually main considerations that car homeowners throughout the nation might unwittingly be driving with invalid insurance coverage in the event that they have not declared the sensible function as a modification.

‘We had been contacted by a determined driver after his insurer, Allianz-owned Movement, cancelled his coverage following an accident on the grounds that he had didn’t listing his automotive’s tow bar as a modification when buying cowl,’ explains Chris Rosamond, present affairs editor at Auto Categorical instructed us.

‘He’d bought Movement insurance coverage by way of MoneySupermarket and chosen the ‘unmodified’ choice when making use of for quotes as a result of the web site’s assist hyperlink didn’t point out tow bar as a modification.’

The value comparability website’s wording in its pop-up assist field within the modifications part of the web type states: ‘What does this [modification question] imply? 

‘In the event you or a earlier proprietor has made a change from the producer’s unique specification, corresponding to alloy wheels, air con, bodywork, exhaust system or tinted home windows, add it right here. 

‘In the event you’re not sure in case your automotive’s been modified, test its earlier historical past to seek out out.’

Auto Categorical discovered rival insurance coverage comparability web sites’ steerage on what constitutes a modification is equally imprecise.

Others merely acknowledged that ‘modifications are modifications to the automotive’s unique specification’ and that these might be ‘mechanical or beauty modifications inside or outdoors the automotive’.

Rosamond says some comparability web sites don’t present simple or apparent routes to details about whether or not a tow bar is a related modification to a automotive’s unique specification. 

Moreover, he warns there isn’t any apparent hyperlink to details about the doubtless devastating penalties of not assembly the requirement to inform insurers about one thing so simple as becoming one.

‘The driving force who obtained in contact with us instructed us that he’s at his ‘wits finish’ including that, following a routine car collision, his insurer had refused to honour his insurance coverage on the final minute, leaving him with a possible six-figure value and unbelievable stress and nervousness for him and his household,’ Rosamond mentioned.

‘He mentioned that his earlier insurer didn’t elevate considerations when he knowledgeable them about becoming a tow bar. 

‘This, mixed with the truth that the modifications part of the acquisition journey on MoneySupermarket didn’t listing a tow bar, meant he had no cause to click on ‘sure’ when requested about modification.’

Following a nine-month dispute with Movement – a subsidiary of Allianz – the Monetary Ombudsman Service present in favour of the insurance coverage firm. 

Nonetheless, the Monetary Conduct Authority’s Shopper Obligation guidelines – which got here into drive in July 2023 – state that ‘necessary data should not be buried in prolonged phrases and situations’.

An Allianz spokesperson on behalf of Movement instructed That is Cash: ‘We perceive the misery attributable to this accident. Making modifications to your car can have critical implications on your automotive insurance coverage coverage if they aren’t declared, and may result in a coverage being invalidated. 

‘The coverage chosen didn’t permit modifications and had we been knowledgeable {that a} tow bar had been fitted we’d not have offered insurance coverage. 

‘The FOS has reviewed this case and its choice, which is binding, has discovered that the end result we reached on this case was honest and cheap.’

A MoneySupermarket spokesperson mentioned: ‘We’re assured that the supporting data we offer in our buyer journey satisfies the FCA’s Shopper Obligation necessities.’

Nonetheless, Auto Categorical mentioned it isn’t completely satisfied.

As such, the automotive journal and web site has written to the FCA requesting an investigation into the knowledge relating to modifications on insurance coverage web sites. 

The Caravan and Motorhome Membership at present has round a million members, suggesting loads of autos on Britain’s roads are geared up with tow bars

‘We expect the present wording usually shared on insurance coverage gross sales web sites round ‘modifications’ is a lure set for the unwary,’ Rosamond added. 

‘Insurance coverage gross sales and comparability websites ought to provide higher readability and element on what constitutes a modification – particularly in relation to tow bars, as we’ve seen – and supply particular data on the potential dangers of getting a declaration improper.

Auto Categorical additionally believes it’s unreasonable for insurers, the FOS or FCA to anticipate a median buyer to know that becoming a detachable tow bar is the kind of modification that might result in a cancelled coverage.

Rosamond continues: ‘We additionally suppose that if an insurance coverage firm presents a coverage it is aware of does not cowl vehicles fitted with tow bars, then it has a duty to make that exception clear to potential clients earlier than taking their cash. 

‘We would prefer to suppose it will additionally ask potential clients whether or not their vehicles have tow bars fitted, earlier than issuing insurance policies in any respect.’

Allianz/Movement instructed Auto Categorical that it would not be looking for to reclaim third occasion prices from the driving force – although it was entitled to take action following the Ombudsman’s choice, however Rosamond needs the insurer to go additional and canopy the driving force’s prices.

Rosamond concludes: ‘We instructed the insurer we hoped it will reinstate cowl for the driving force, in addition to settling the third occasion claims in his case. 

‘We additionally mentioned we predict Allianz/Movement doesn’t seem like performing in good religion, given the shortage of readability of knowledge offered on tow bar fitment on the level of sale for its insurance policies. Certainly, it appears to us as if Movement has jumped on a ‘small print’ infraction – one which has no bearing on the declare itself – merely so as to keep away from a payout.

‘We’re ready for responses however it’s clear one thing wants to vary in order that no different drivers need to undergo the same ordeal. 

‘In the meantime, we urge all motorists to tell their insurers if their automotive has any modifications – nonetheless small they might appear, and whether or not they made them themselves, or it was a earlier proprietor and even the supplying seller – to keep away from getting caught out in the identical manner.’