Insurance Query

[hilly1981]

Hey everyone!

Just need your thoughts on this scenario.

A person has purchased car from a dealer with some known existing mods (Wheels, Spoiler and exhaust mods)

The person advises his/her insurance company of the new vehicle and the existing mods and takes out a comprehensive policy.

Down the track a claim is to be made, and the insurance company advise that in fact the suspension had been lowered from standard ride height, yet this was not advised when insurance policy taken out.

The person who bought the vehicle was not aware of this, as no documentation provided by dealer at time of sale listed any mods on the vehicle, hence did not know or advise the insurance company.


In this scenario, what would the insurance company do? Would they reject or reduce the claim on the basis that the person who owns the vehicle did not advise them of this particular mod? Or would they make an exception?


Cheers!

[The G6ET Spot]

Its a tricky one.They are an insurance company,if they found a way of rejecting a claim they would.In saying that from the sounds of your post,the said person must now of the suspension mod otherwise the question would not have been asked in the context that it has been.

[Yaw]

depends on the insurer.
Most insurance companies would accept the claim once the correct premium was paid for having the extra Mod and maybe ask for a contibution towards the repairs if there is a part other than the standard part damaged. The insurance company will only pay what the standard part would cost if they are unaware of the mod.

Some insurance companies may use duty of disclosure on you, but generally insurance companies would do the above.