Warning as fitting alloy wheels to your car could leave you with unexpected bill

The Financial Ombudsman Service is seeing cases where a failure to declare modifications leads to insurance being invalidated or claims being rejected in the event of an accident

The Financial Ombudsman Service is sending out a stark warning to drivers about car modifications like alloy wheels or tinted windows which could hit motorists with unexpected bills.

The service has seen a spike in vehicle owners facing large expenses for unknowingly voiding their car insurance. Car modifications can vary from aesthetic tweaks such as body kits and bespoke paint jobs to performance upgrades like improved exhaust systems and engine tuning.

A failure to notify insurers about changes like wheel customization or ECU remapping for better engine performance can have grave outcomes, leading to voided policies or denied claims after an accident. Even minor adjustments, such as adding a darker tint to windows or upgrading the stereo system, might raise insurance costs due to the heightened risk introduced by these alterations.

Rachel Lam, the insurance ombudsman director at FOS, highlighted the pitfalls, stating: "For many people a car is their pride and joy, and it’s understandable that they may want to modify or personalise their vehicle. But these changes can have huge repercussions – increasing premiums, invalidating insurance or leaving unsuspecting car owners thousands of pounds worse off."

"It is crucial owners inform insurers of any modifications, even if they were made before the car was purchased. If people don’t feel they have been treated fairly by their insurer, they can come to our service, and we will investigate their complaint. Getting a fair answer is free and easy."

The Financial Ombudsman Service (FOS) advised that motorists should review their policy and contact their insurer to clarify what needs to be declared before making any modifications. If someone is buying a vehicle, they should ask questions and scrutinise paperwork to understand if it has previously been modified.

The service emphasised that people should always provide accurate information about any changes to their vehicle when applying or renewing insurance. In one instance, a person contacted the ombudsman after his motor insurer voided his policy and declined his claim following an accident.

Upon investigating the claim, the insurer discovered the car had alloy wheels fitted that were three inches larger than the manufacturer’s standard size. The consumer claimed he was unaware of the modification.

The ombudsman concluded that an average consumer would not spot the difference in the new and standard tyres. Therefore, the service believed the consumer took reasonable care when applying for motor insurance. Consequently, the insurer was ordered to reinstate the policy and take several other steps to rectify the situation, including compensating the consumer for distress and inconvenience.

In another instance, a customer lodged a claim following an accident, only to have their policy cancelled when the insurance company discovered an undeclared ECU remap and exhaust retuning. The customer argued that these modifications were already present when he bought the car.

However, the insurer provided evidence that he knew about the modifications but failed to disclose them. The ombudsman agreed with the insurer's decision to cancel the policy.

The service has also dealt with cases where the owner has declared modifications, but at the point of claim, found out that the value of the modification is not covered, despite paying a higher premium for the insurance. This highlights the importance of thoroughly checking and understanding all policy documents to know what is covered by the insurer, the service emphasised.