Car Mods + Insurance Claims

[HSB 282]

Just saw this interesting article: http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11417381

Undisclosed modifications, including window tints, are one of the most common reasons insurance companies turn down claims in New Zealand, [insurance and Savings Ombudsman, Karen] Stevens told theHerald on Sunday. "An insurer could say that tinted windows are a modification that either increases the value of your car or makes it more attractive to thieves and increases the risk [to the insurer].

Tints? Even legal 35%ers? .....make cars "more attractive to thieves and increases the risk" Well not to be crass nor insensitive, but does me wearing make up make me more attractive to a rapist? Therefore I can be attributed some blame?

I do not buy this argument, sounds like utter bullsh*t. What does everyone else think?

[Driftit 2069]

Sounds like they were insured by State. Haha.

Said it before on this forum a while back. But we once called them to inform them I had put a better head unit in my car. The said I had breached the contract and my insurance was terminated. All I wanted was to re-evaluate my policy. Was happy to pay more. 45mins later they had lost 3 more cars as my family ditched them.

[gjm 3258]

Many insurance companies have been cited as using absolutely any possible excuse to deny a pay out. Non-standard wheels are a favourite; they may be the right size and specification, but if they aren't original (and you've not told the insurance company) then some companies will refuse to pay on an accident or theft.

The cert system in NZ does go some way to helping with this. If you've performed a mod that requires cert, haven't go that cert (even if it has passed WoF), then an insurance company will take a dim view. It's a hassle, but it's nothing when compared to Germany's TuV.

(Health insurance is another. Sure, if you've had a heart attack and not told the company then don't expect any sympathy. However, even minor and seemingly insignificant historical health issues have been used by insurance companies to reduce or refuse pay out.)

(Sensible, legal) tints being an insurance risk? Sounds like rubbish to me. Some manufacturers offer tints either as an option or standard. Does that mean the original build and options specification should be submitted to an insurer as a part of any application (or claim)?

[E30 325i Rag-Top 2956]

Insurance policies are a contract aren't they? The application form makes the basis for that agreement, and question on it usually says something like "is the car modified?". Answering the question wrongly could be said to be making the contract null and void couldn't it?

The argument comes down to whether the mods in question actually contributed to the claim (make it more likely to be stolen or crashed) I suppose.

[T.N.R 33]

Yes, BS. Just another way for companies to save money while screwing people over in the process.

[Driftit 2069]

Insurance policies are a contract aren't they? The application form makes the basis for that agreement, and question on it usually says something like "is the car modified?". Answering the question wrongly could be said to be making the contract null and void couldn't it?

The argument comes down to whether the mods in question actually contributed to the claim (make it more likely to be stolen or crashed) I suppose.

We rand to evaluate and adjust the contract. Didn't want a bar of it.

[gjm 3258]

Don't forget an insurance company will typically low-ball you on a total loss payout, but you do not have to accept it. A formal letter detailing exactly why your claim should be upheld for a higher value than that offered will most often see a counter offer being made, along with a statement like 'our engineers say...'

It's is almost certain you will know more about your car than they do.

[jordan23 16]

Just an FYI and protect my ass, after reading that story I dropped my broker an email advising of window glass tinting on my cars. It's now been noted on my policy.

The info my broker wanted was"Just wanted to check if your window tinting is within what is legally permitted in New Zealand, has it been professionally done and what is the cost to have it done (current market value)?"

So you can see during a claim if the tint was was illegal and you put it on yourself you are giving an option for the claim to be declined.

[M5V8 337]

I think in the example story the undisclosed driving conviction would be enough to decline a claim.

But Stevens said one complaint to her office was over a stolen Nissan Primera with undeclared tints and a stereo and whose policyholder had not disclosed a driving conviction.

Moral of the story kids, be honest and upfront with everything. If you have modified something on your car, advise your insurance company.

I even tell them about the last speeding ticket I had in 2000 something....

If your insurance company then changes the price or advises any policy exemptions or cancellation you have the chance to take your business elsewhere.

[E30 325i Rag-Top 2956]

Yeah, a mate of mine had a history of convictions longer than his arm, forgot to mention one of them out of the hundreds, and when it was claim time - rejected! And it was an honest mistake on one of the more minor issues.

[gjm 3258]

Yeah, a mate of mine had a history of convictions longer than his arm, forgot to mention one of them out of the hundreds, and when it was claim time - rejected! And it was an honest mistake on one of the more minor issues.

This is a significant and perhaps fair complaint. The undisclosed conviction would most likely have made no difference to the premium, policy or exclusions, but it does provide the insurance company with a reason (excuse?) to withhold payment.

[M5V8 337]

In general all insurance companies look for any excuse to refuse a claim. The bigger the claim the harder they look.

They have customer's attempting to defraud them on a daily basis so they have whole departments dedicated to this. I worked for a big insurance company in Australia for a period.

Don't give them any reason to decline a claim, otherwise you are just wasting your premium.

Also, getting insurance at a decent premium after having a claim refused is tough. It's one of they questions they always ask.

[HSB 282]

Food for thought eh. Guess I've got a phone call to make tomorrow...

Will be interesting to see if I'm faced with Driftit-type experience (I am not with State however my rims have been changed since May 2013 and I never considered I needed to tell them).

Auto-Sure seems much more amenable to accepting [mechanical] claims where claimants are the innocent party - out of curiosity - anyone had any bad dealings with Autosure (or the like)?