Car Insurance and declaring options (yet another thread)
Discussion
Wondering if the resident insurance experts can offer insight into this.
I've ordered my first ever new car, and I've started looking around for insurance on it.
This is nothing new, but it does seem like the process for declaring options on it is a bit of a minefield.
Company A: If its an option you specced when you ordered the car new, we will cover it.
Company B: I list out the options (Metallic Paint, Adaptive Cruise and a "Family Pack" which is tinted windows, a 15p plastic bin, a different style electric window switch and a rubber boot mat") and they pick through the ones they consider a mod and amend accordingly.
Company C: Only the Adaptive cruise is a mod, we don't care about the rest.
Company D: We only care about the metallic paint and Cruise.
My point is this: I am completely fine declaring these options, I am at an age and live somewhere where the cost isn't a concern to me. I understand modifications need to be declared to accurately adjust risk and to cover the reinstatement of the option should you state a claim.
But how on earth does the next owner of my car know what I specced? Option packs aren't a standardised offering from manufacturers.
Just thinking about it, my other car (old CLK) - I have no idea what the options chosen on it were, and how on earth is the consumer supposed to know? Am I meant to get a brochure from 2006 for it and compare standard spec against options?
Not a rant, I am just trying to figure out how this works in the real world with insurers.
I've ordered my first ever new car, and I've started looking around for insurance on it.
This is nothing new, but it does seem like the process for declaring options on it is a bit of a minefield.
Company A: If its an option you specced when you ordered the car new, we will cover it.
Company B: I list out the options (Metallic Paint, Adaptive Cruise and a "Family Pack" which is tinted windows, a 15p plastic bin, a different style electric window switch and a rubber boot mat") and they pick through the ones they consider a mod and amend accordingly.
Company C: Only the Adaptive cruise is a mod, we don't care about the rest.
Company D: We only care about the metallic paint and Cruise.
My point is this: I am completely fine declaring these options, I am at an age and live somewhere where the cost isn't a concern to me. I understand modifications need to be declared to accurately adjust risk and to cover the reinstatement of the option should you state a claim.
But how on earth does the next owner of my car know what I specced? Option packs aren't a standardised offering from manufacturers.
Just thinking about it, my other car (old CLK) - I have no idea what the options chosen on it were, and how on earth is the consumer supposed to know? Am I meant to get a brochure from 2006 for it and compare standard spec against options?
Not a rant, I am just trying to figure out how this works in the real world with insurers.
You need to look at the terms and conditions of the policy, an 18 year old in a call centre will tell you whatever they think is correct.
Having been one of them, the amount of utter drivel some of my colleagues used to come out with was incredible.
Optional extras are not modifications, unless you've had the car delivered and asked the dealer to make some changes. The chances of you getting a claim rejected because you've failed to declare your new car has cruise control option selected is close to nil.
How does a car with leather seats differ from a car with cloth seats?
If the car has leather seats option selected on the configurator, this is an OPTION. The options are either Cloth or Leather. You aren't saying I want to modify the cloth seats with leather.
I have never been asked to declare optional extras, how on earth would Jo public know whether it was optional or standard on a used car?
On a new car there is a 12 month replace with new clause on some insurance policies rather than writing off and giving you the value. They might need to know full RRP for this purposes, if that's what they are angling at,
Having been one of them, the amount of utter drivel some of my colleagues used to come out with was incredible.
Optional extras are not modifications, unless you've had the car delivered and asked the dealer to make some changes. The chances of you getting a claim rejected because you've failed to declare your new car has cruise control option selected is close to nil.
How does a car with leather seats differ from a car with cloth seats?
If the car has leather seats option selected on the configurator, this is an OPTION. The options are either Cloth or Leather. You aren't saying I want to modify the cloth seats with leather.
I have never been asked to declare optional extras, how on earth would Jo public know whether it was optional or standard on a used car?
On a new car there is a 12 month replace with new clause on some insurance policies rather than writing off and giving you the value. They might need to know full RRP for this purposes, if that's what they are angling at,
Recently changed insurers for my BMW to Admiral as the multi-car discount was too good to pass up. The online form asks you to declare all optional extras but only lets you chose from their pre-populated list. Not wishing to fall foul of an adenoidal 'failure to declare' in the future, I emailed them the full list of codes from a VIN decoder.
Their only follow-up question was were they fitted at the factory or afterwards.
Was slightly peeved that they charged me a £9.50 policy change fee because their website is crap.
Their only follow-up question was were they fitted at the factory or afterwards.
Was slightly peeved that they charged me a £9.50 policy change fee because their website is crap.
Recently bought a used BMW 340i and decided to get BMW to fit the M Performance Power and Sound Kit - which was available as an option when speccing the car from new. As my car wasn't specced with the option I declared it to my insurer (Admiral) who charged me a total of £9.50 for the privilege. I never spoke to anybody - just used their online form and declared an aftermarket exhaust and a power increase/remap.
Obviously it depends on what the insurance company asks for, but I'd only declare items that are different to the build sheet (which should be easily available to insurers).
You've also got to be careful with mods and some insurers, as they only 'note' the modifications for their records...and for claims against a 3rd party insurer to prove those mods were declared...but will only pay out to the value of a standard vehicle (if stolen/written off) or the cost of standard replacement parts (if repaired).
I'd also be aware that Admiral ask you to declare optional extras bought from new...otherwise they 'may' only pay out at the value of the pre-optioned car.
You've also got to be careful with mods and some insurers, as they only 'note' the modifications for their records...and for claims against a 3rd party insurer to prove those mods were declared...but will only pay out to the value of a standard vehicle (if stolen/written off) or the cost of standard replacement parts (if repaired).
I'd also be aware that Admiral ask you to declare optional extras bought from new...otherwise they 'may' only pay out at the value of the pre-optioned car.
Admiral guide said:
10. What car modifications void your insurance?
When you arrange your car insurance cover you need to tell us about any modifications and optional extras on your car as not all types can be covered.
If you plan on modifying your car in any way, from adding racing stripes to having an engine remap, then you will need to let us know as this could affect the way we cover your vehicle. ECU remapping, for example, will affect the car’s power and may cause your price to increase.
Similarly, you need to let us know about any optional extras your car may have. Any Mini or BMW owners out there are probably well aware of the incredible number of optional extras available when you buy a new car.
When you arrange your car insurance cover you need to tell us about any modifications and optional extras on your car as not all types can be covered.
If you plan on modifying your car in any way, from adding racing stripes to having an engine remap, then you will need to let us know as this could affect the way we cover your vehicle. ECU remapping, for example, will affect the car’s power and may cause your price to increase.
Similarly, you need to let us know about any optional extras your car may have. Any Mini or BMW owners out there are probably well aware of the incredible number of optional extras available when you buy a new car.
Edited by mmm-five on Friday 20th August 11:55
devnull said:
Wondering if the resident insurance experts can offer insight into this.
I've ordered my first ever new car, and I've started looking around for insurance on it.
This is nothing new, but it does seem like the process for declaring options on it is a bit of a minefield.
Company A: If its an option you specced when you ordered the car new, we will cover it.
Company B: I list out the options (Metallic Paint, Adaptive Cruise and a "Family Pack" which is tinted windows, a 15p plastic bin, a different style electric window switch and a rubber boot mat") and they pick through the ones they consider a mod and amend accordingly.
Company C: Only the Adaptive cruise is a mod, we don't care about the rest.
Company D: We only care about the metallic paint and Cruise.
My point is this: I am completely fine declaring these options, I am at an age and live somewhere where the cost isn't a concern to me. I understand modifications need to be declared to accurately adjust risk and to cover the reinstatement of the option should you state a claim.
But how on earth does the next owner of my car know what I specced? Option packs aren't a standardised offering from manufacturers.
Just thinking about it, my other car (old CLK) - I have no idea what the options chosen on it were, and how on earth is the consumer supposed to know? Am I meant to get a brochure from 2006 for it and compare standard spec against options?
Not a rant, I am just trying to figure out how this works in the real world with insurers.
The next owner can only declare what they know. If it's not obvious then they it can't be held against them.I've ordered my first ever new car, and I've started looking around for insurance on it.
This is nothing new, but it does seem like the process for declaring options on it is a bit of a minefield.
Company A: If its an option you specced when you ordered the car new, we will cover it.
Company B: I list out the options (Metallic Paint, Adaptive Cruise and a "Family Pack" which is tinted windows, a 15p plastic bin, a different style electric window switch and a rubber boot mat") and they pick through the ones they consider a mod and amend accordingly.
Company C: Only the Adaptive cruise is a mod, we don't care about the rest.
Company D: We only care about the metallic paint and Cruise.
My point is this: I am completely fine declaring these options, I am at an age and live somewhere where the cost isn't a concern to me. I understand modifications need to be declared to accurately adjust risk and to cover the reinstatement of the option should you state a claim.
But how on earth does the next owner of my car know what I specced? Option packs aren't a standardised offering from manufacturers.
Just thinking about it, my other car (old CLK) - I have no idea what the options chosen on it were, and how on earth is the consumer supposed to know? Am I meant to get a brochure from 2006 for it and compare standard spec against options?
Not a rant, I am just trying to figure out how this works in the real world with insurers.
I've owned loads of cars and I've never considered what might have been options. How would I know what the options were on a 10 year old focus? I suspect they care a lot less as the car gets older, because the associated value of these options diminishes.
You do not have to declare anything; all you have to do is answer the questions the insurer/broker asks you, truthfully to the best of your knowledge. The Consumer Insurance Act puts the onus on the insurer to ask clear and relevant questions, and protects the consumer, unless they carelessly or deliberately misrepresent their circumstances.
QuartzDad said:
That's what I got when I went to put my new 320D onto the multi-car policy, but the options available didn't cover everything I had, so had to click the 'Other' selection too. Maybe that's what doubled the premium over the older 330D I had?Went elsewhere and got it for the same as I'd paid previously.
Just avoid Admiral group and use a decent insurer.
I'm not rich but I really don't give a damn about insurance cost. I just want to be able to speak to someone who is competent and if I need them, they sort everything without any fuss.
Heard good things about Locktons. My current guys are good but the extras they offer (trackdays) aren't much use to me.
I'm not rich but I really don't give a damn about insurance cost. I just want to be able to speak to someone who is competent and if I need them, they sort everything without any fuss.
Heard good things about Locktons. My current guys are good but the extras they offer (trackdays) aren't much use to me.
I was with a Churchill and they insisted that every optional extra be declared. Having just bought a five year old car I had to ask the dealer for a build sheet which they provided promptly at no cost. A simpleton at the Churchill call centre then had me read out and spell out all [20] of the optional extras over a frustrating 20 minutes only to then inform me that their system only accepts 5 entries and ask me which ones would I like listed.
I dumped them for LV= because LV= terms are very precise on this matter and state that nothing factory fitted should be declared.
I dumped them for LV= because LV= terms are very precise on this matter and state that nothing factory fitted should be declared.
Hang On]I was with a Churchill and they insisted that every optional extra be declared. Having just bought a five year old car I had to ask the dealer for a build sheet which they provided promptly at no cost. An idiot at the Churchill call centre then had me read out and spell out all [20 said:
of the optional extras over a frustrating 20 minutes only to then inform me that their system only accepts 5 entries and ask me which ones would I like listed..
That's a classic. Sounds like you got through to the Nodding Dog itself...I'm renewing our multicar policy at the moment (Aviva) and the renewal they sent me had a number of mistakes, two of which i'd corrected last year (been with them several years). One of those was wifes occupation. If that affects the risk score, and she'd had a crash - how could i possibly prove that i'd already had a telephone conversation with them to correct that at the last policy renewal?
I record some calls now, its easy with a mobile as you can just open soundcloud (etc) up and hit record.
Edit to add i've never declared modifications or optional extras. I've never modified a car and wouldn't know or care if one i had was modified. As for optional extras, they can lookup the reg and other data, so if it matters that much they should be able to automatically lookup build options too.
I record some calls now, its easy with a mobile as you can just open soundcloud (etc) up and hit record.
Edit to add i've never declared modifications or optional extras. I've never modified a car and wouldn't know or care if one i had was modified. As for optional extras, they can lookup the reg and other data, so if it matters that much they should be able to automatically lookup build options too.
Edited by bmwmike on Friday 20th August 15:57
Hang On said:
I dumped them for LV= because LV= terms are very precise on this matter and state that nothing factory fitted should be declared.
Which is interesting, because B in this instance was LV, as per a comment above, the agent I spoke to was basically useless.Its all very well using the comparison sites, but you really do need to pick through the policy documents to see what they say before just hitting next next on the site and buying the policy.
There’s two aspects to declaring options.
One is to avoid any comeback about whether your insurance is valid.
The other is to ensure that if there is a claim, you get properly compensated.
If all you’ve got is metallic paint then it’s irrelevant on both counts but if you’ve added 20% to list price with options and the car gets written off you want to be sure that’s reflected in payout.
One is to avoid any comeback about whether your insurance is valid.
The other is to ensure that if there is a claim, you get properly compensated.
If all you’ve got is metallic paint then it’s irrelevant on both counts but if you’ve added 20% to list price with options and the car gets written off you want to be sure that’s reflected in payout.
devnull said:
Which is interesting, because B in this instance was LV, as per a comment above, the agent I spoke to was basically useless.
Its all very well using the comparison sites, but you really do need to pick through the policy documents to see what they say before just hitting next next on the site and buying the policy.
From LV= website...Its all very well using the comparison sites, but you really do need to pick through the policy documents to see what they say before just hitting next next on the site and buying the policy.
https://www.lv.com/car-insurance/are-factory-fitte...
Odd that the agent should be so untrained.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff