Drivers could be at risk of their car insurance being invalidated if they don’t declare a common feature fitted
DRIVERS could risk losing their car insurance over a common car part fitted in hundreds of thousands of vehicles, motor experts have warned.
Car owners who do not declare the simple modification feature could be forced to pay six-figure bills.
As bike trips beckon and camping getaways call your name, adding a tow bar could be a great move.
But this changes how an insurance company will look at your vehicle.
Drivers who have towbars fitted on the body of their cars must declare it while buying an insurance plan.
Otherwise, they could risk getting their insurance invalid at times of accidental or theft claims, forcing them to pay out of their own pockets.
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This is because adding a towbar to your car counts as an after-market modification - and needs to be declared when choosing an insurance plan.
Insurance companies hold the right to decline claims and refuse to pay money to customers who do not come clean about after-market car parts.
Even small changes count as modifications and if not reported to your insurance company, could have your coverage scrapped.
One such customer contacted Auto Express and said they were left with a six-figure bill when their insurer refused to pay out on a claim and cancelled the insurance policy.
This is because the driver failed to declare their after-market towbar as a "modification" while buying the insurance plan.
Auto Express told We were contacted by a desperate driver after his insurer, Allianz-owned Flow, cancelled his policy following an accident on the grounds that he had failed to list his car's tow bar as a modification when purchasing cover.
"He'd purchased Flow insurance via MoneySupermarket and selected the 'unmodified' option when applying for quotes because the website's help link did not mention tow bar as a modification."
The most common modifications include exhaust changes, alloy wheels, suspension alterations and tinted windows, but they can also be far less significant.
"Alloy wheels, engine modifications or body kit changes can add to the value of the vehicle which has a direct impact on future claims.
"It’s always better to err on the side of caution and let your insurer know about any changes.”
How to get cheap car insurance
CAR insurance is an essential cost that you hope to never use but will need to cover the costs of theft or damage to your vehicle.
CAR insurance is an essential cost that you hope to never use but will need to cover the costs of theft or damage to your vehicle.
It's a legal requirement to have car insurance, and going without it could land you with a £300 fine, six penalty points on your licence and even a criminal conviction.
But there are several ways to slash your premiums.
Pay upfront
Insurers give you the choice of paying for insurance monthly or upfront.
Paying monthly spreads the cost of your cover, but the insurer adds interest charges, which means the average motorist pays around ten percent more overall.
If you pay for your car insurance annually you don’t pay any interest.
According to comparison site MoneySuperMarket, a typical motorist can save up to £225 a year by paying in one go.
Increase your excess
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 a policy and it can be as low as £100 and as high as £500 or more.
The higher your excess, the lower your premium and vice versa.
This means you could bring the cost of your insurance down by agreeing to pay more if you do need to make a claim.
But before you hike your excess, make sure you would be able to pay in the event that you do need to make a claim.
Tweak your job
Certain jobs are seen as more risky than others for insurance purposes.
Making small but accurate changes to your job title can save you money.
For example, swapping 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 from Go Compare, Comparethemarket, MoneySupermarket and Confused.com.
Insurer Direct Line is also not on comparison sites so check its prices directly.
You can also get a free cash bonus by going via a cashback site such as Topcashback or Quidco.
Save the date
Renewing your car insurance sooner rather than later could save you some cash.
New cover becomes more expensive the closer you get to the renewal date.
But you can buy your car insurance up to 29 days before the policy start date and 'lock in' the price you're quoted on that day.
A typical driver can save up to £265 buying new cover at least 27 days before their current policy ends, according to Go Compare.
What are the laws regarding car modification?
Anything that is illegal will void the insurance.
This includes under-car neon lights, tinted windows restricting more than 70% of light and some LED headlights.
Even if you didn't know your car had been modified, it won't be covered by your insurer if they find something you haven't declared.
If you are found to be without valid insurance, you can be hit with a £300 fixed penalty and six points on your licence.
If the case goes to court that could be extended to an unlimited fine and a driving ban.
Are car modifications illegal?
Not all car modifications are against the law.
Interestingly, debadging your car is legal in the UK.
While many might land you with an MOT failure if they are considered obstructive or excessive, it is possible to modify your car in many ways.
Higher-performance brakes, parking sensors, and extra security add-ons are all legal.
Can you be fined for car modification?
Drivers could be slapped with fines if their car modifications aren't in line with UK regulations.
But what kind of penalties could you face? Here's an idea of the gravity of the fines you could face.
Brits who plaster stickers on their car's rear window could be faced with a £300 fine and six penalty points.
If you have a dodgy number plate - which may involve it being covered with a reflective coating, it could land you a £100 penalty.
Jo Thornhill from MoneySuperMarket said: “You need to let your finance provider know of any changes to the car, no matter how small.
"That’s because you don’t actually own the car while paying your finance instalments on PCP or HP.
"As long as you are within your 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 they are the owner.
"If they need to recoup their losses due to you not being able to make repayments, they can take the car and sell it.
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"But modifications to a car can affect its value; they can either improve it or lower it.
"In your eyes, you might have improved it, but the finance company may think differently."