Insurance companies might not pay out if drivers have this fitted to their vehicle (Image: Getty )
could risk invalidating their insurance policy because of hidden small print that requires drivers to declare a common feature often fitted to vehicles.
It’s estimated there could be millions of drivers who have a tow bar attached to their car, but it’s reported some insurance firms require the device to be listed as a “modification”.
The problem can be worse in the online age, because often drivers shop around on price comparison sites, but the details concerning tow bars are not always clear.
Weekly motoring magazine reported that one driver told them they had been left with a “six-figure bill” after he said his insurer refused to pay out because when he was running a price check for a new policy.
This is Money section said the example has raised major concerns potentially hundreds of thousands of drivers could have policies not worth the paper they are written on.
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Many vehicles have tow bars fitted by if drivers don’t inform insurance firms it can cause problems (Image: Getty )
Chris Rosamond, the current affairs editor of Auto Express, told This is Money: “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.”
Auto Express said insurance comparison website guidance on what constitues a modification was “vague” and Mr Rosamond added: “The driver who got in touch with us told us that he is at his ‘wits end’ adding that, following a routine vehicle collision, his insurer had refused to honour his insurance at the last minute, leaving him with a potential six-figure cost and incredible stress and anxiety for him and his family.
“He said that his previous insurer did not raise concerns when he informed them about fitting a tow bar.”
MailOnline reports following a nine-month dispute with Flow – a subsidiary of Allianz – the Financial Ombudsman Service found in favour of the insurance company.
However, Auto Express has now written to the FCA requesting an investigation into the information regarding modifications on insurance websites.
Mr Rosamond said: “We think the current wording typically shared on insurance sales websites around ‘modifications’ is a trap set for the unwary.
“Insurance sales and comparison sites should offer greater clarity and detail on what constitutes a modification – especially in relation to tow bars, as we have seen – and provide specific information on the potential risks of getting a declaration wrong.”
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Insurance companies need to be kept informed of any alterations to a vehicle (Image: Getty )
An Allianz spokesperson on behalf of Flow told This is Money: “We understand the distress caused by this accident. Making modifications to your vehicle can have serious implications for your car insurance policy if they are not declared, and can lead to a policy being invalidated.
“The policy chosen did not allow modifications and had we been informed that a tow bar had been fitted we would not have provided insurance.
“The FOS has reviewed this case and its decision, which is binding, has found that the outcome we reached in this case was fair and reasonable.”
A MoneySupermarket spokesperson said: “We’re confident that the supporting information we provide in our customer journey satisfies the FCA’s Consumer Duty requirements.”