DRIVERS could risk losing their car insurance due to a common auto part fitted to hundreds of thousands of vehicles, motoring experts have warned.
Car owners who don’t declare the easy-to-change feature could be forced to pay a six-figure bill.
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You must report the use of a towbar to your insuranceCredit: Getty
With bike trips beckoning and camping getaways calling your name, adding a tow bar could be a great move.
But this changes the way the insurance company will look at your vehicle.
Drivers who have towbars fitted to the body of their cars must declare this when purchasing an insurance plan.
Otherwise, they could risk their insurance becoming invalid in the event of an accident or theft claim, causing them to pay out of pocket.
This is because adding a tow bar to your car counts as a retrofit – and should be specified when choosing your insurance plan.
Insurance companies have the right to deny claims and refuse to pay out money to buyers who are unclear about auto parts after the sale.
Even small changes count as alterations and if not reported to your insurance company, your coverage could be terminated.
One such customer contacted Auto Express and said they were left with a six-figure bill when their insurer refused to pay for the damage and canceled their insurance policy.
This is because the driver did not declare their aftermarket towbar as a “modification” when purchasing the insurance plan.
Auto Express said we were contacted by a desperate driver after his insurer, Allianz-owned Flow, canceled his policy following an accident on the basis that he had failed to list his car’s towbar as a modification when buying cover.
“Purchased Flow insurance through MoneySupermarket and selected the ‘unmodified’ option when applying for quotes as the help link on the website did not mention the towbar as a modification.”
The most common modifications include exhaust modifications, alloy wheels, suspension modifications and tinted windows, but they can also be far less significant.
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Failure to post changes may result in voiding the insurance in the event of a claim.
Neil Greig, director of policy and research at IAM RoadSmart, said: “Drivers need to be aware that any change to their car’s original manufacturer specification may be of interest to their insurer.
“Aluminum rims, engine modifications or body changes can increase the value of the vehicle which has a direct impact on future claims.
“It’s always better to be cautious and inform your insurer of any changes.”
How to get cheap car insurance
Car insurance is an essential expense that you hope you never use, but it will have to cover the cost of theft or damage to your vehicle.
Car insurance is an essential expense that you hope you never use, but it will have to cover the cost of theft or damage to your vehicle.
It’s a legal requirement to have car insurance, and without it you could face a £300 fine, six penalty points on your driving license and even a criminal conviction.
But there are several ways to lower your premiums.
Pay in advance
Insurers give you the choice of paying the insurance monthly or in advance.
Paying monthly increases the cost of your coverage, but the insurer adds interest, meaning the average driver pays about ten percent more in total.
If you pay your car insurance annually, you don’t pay any interest.
According to comparison site MoneySuperMarket, a typical driver can save up to £225 a year by paying in one go.
Increase your surplus
You agree to pay the excess each time you need to make a claim on your policy.
You can usually choose your own excess when setting up your policy and it can be from as little as £100 to £500 or more.
The higher your excess, the lower your premium and vice versa.
This means you could reduce the cost of your insurance by agreeing to pay more if you need to make a claim.
But before you increase your excess, make sure you can pay in case you have to make a claim.
Refine your work
Certain jobs are considered riskier than others for insurance purposes.
Making small but accurate changes to your job title can save you money.
For example, changing your role from “chef” to “caterer” can save you £20, comparison site GoCompare found.
And changing your role from “fast food delivery driver” to “delivery driver” could save you £40.
But lying about your job could invalidate your policy, so make sure any changes are legitimate and accurate.
Shop around
Not all comparison sites have the same range of insurers so to get the best price it’s a good idea to check two or three with Go Compare, Comparethemarket, MoneySupermarket and Confused.com.
Insurer Direct Line is also not on comparison sites so check their prices directly.
You can also get a free cashback bonus by going to a cashback site like Topcashback or Quidco.
Save the date
Renewing your car insurance sooner rather than later could save you some money.
The new cover gets more expensive as the renewal date approaches.
But you can buy car insurance up to 29 days before the policy start date and ‘lock in’ the price you were quoted on that day.
According to Go Compare, a typical driver can save up to £265 by buying new cover at least 27 days before their current policy expires.
What are the laws regarding car modifications?
Anything illegal will void the insurance.
These include neon lights under the car, tinted windows that block more than 70% of light, and some LED headlights.
Even if you didn’t know your car was modified, your insurer won’t cover it if they find something you didn’t report.
If you’re found not to have valid insurance, you could face a fixed penalty of £300 and six points on your driving licence.
If the case goes to court, this could extend to an indefinite fine and driving ban.
Are car modifications illegal?
Not all car modifications are illegal.
Interestingly, removing your car’s tag is legal in the UK.
Although many could get you a MOT failure if they’re considered obstructive or excessive, it’s possible to modify your car in many ways.
High-performance brakes, parking sensors and additional safety accessories are legal.
Can you be fined for modifying your car?
Drivers could be fined if modifications to their cars do not comply with UK regulations.
But what kind of penalties can you face? Here’s an idea of the severity of the penalties you could face.
Britons who stick the stickers on the back window of their car could face a £300 fine and six demerit points.
If you have an incorrect number plate – which could mean it’s covered in a reflective coating, you could be fined £100.
Jo Thornhill of MoneySuperMarket said: “You must inform your finance provider of any changes to the car, no matter how minor.
“This is because you don’t actually own the car while paying your finance installments on a PCP or HP.
“As long as you fulfill the contract, the car belongs to the finance company and is their security for the loan.
“Therefore the finance company can place restrictions on the car while it is the owner.
“If they need to recoup their losses due to your inability to repay, they can take the car and sell it.
“But modifications to a car can affect its value; they can improve it or reduce it.
“In your eyes, you may have improved it, but the finance company may think otherwise.”
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Source: HIS Education