New research by Forbes Advisor has revealed undeclared car modifications as the primary reason for disallowed car insurance claims in the UK.
The study found one-sixths of the claims, or 16%, from all drivers were rejected partially or fully due to undeclared modifications on the vehicle, such as window tints or rear spoilers.
“Car insurance policies are tightly-written legal contracts with obligations on both sides. If you modify your car in any way - fitting tinted windows could be enough - then there’s a chance your claim on the policy could be rejected,” said Kevin Pratt, car insurance expert at Forbes Advisor. “If you do make a change to your car’s spec, it’s important to tell your insurer immediately - don’t wait until renewal.”
The second most-common reason was parking in a location at a certain time, impacting 15% of cases recorded. This includes parking at a driveway overnight after specifying the car would be in a garage. Following this were fronting and using a car for business purposes despite a social/domestic-only policy, with that issue impacting 14% of cases recorded.
The research also revealed the actions taken by the British drivers following rejected car insurance claims.
Over two-fifths, or 44%, opted to stay with their insurance provider on a policy that could provide a greater level of cover following the claim refusal. Three in 10 stayed with the same provider under the same policy, while 18% changed providers and 8% had to have their policy cancelled by the insurer.
“If you think your claim has been unfairly rejected and your insurer refuses to budge, you should consider contacting the Financial Ombudsman Service, which will rule on the matter,” said Pratt. “With car insurance prices rocketing at the moment, it’s a good idea for everyone to test the market at renewal by running a quote comparison. If you’ve recently had a claim rejected, it’s doubly worthwhile running a comparison to make sure you’re getting the best deal.”
British drivers believe texting when stuck in traffic (40%) and ingesting Cannabidiol (CBD) oil before driving (22%) are top behaviours that would invalidate claims. However, according to the study, these reasons may not necessarily invalidate a policy.
On the contrary, speeding would be a primary reason that could put a driver’s policy in jeopardy should they need to make a claim following an accident. Drivers were coy in owning up to the act with 46% admitting to going over the limit. Drivers from Brighton (66%), Sheffield (63%), and Plymouth (61%) were more honest in their admissions.
Other bad habits that British drivers were willing to disclose included eating or drinking while driving (38%), failing to indicate (33%), and blaring loud music (32%).
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