How often does insurance claim(s) get rejected ?

[Matrix]

Hi guys, i'm trying to renew my insurance claim. Apparently, AAMI's premiem is a lot cheaper than RACV and other competitors.

Reading their terms and conditions, i found in small prints that you do not get covered if

1) your car was converted, altered or modified from its maker’s specifications.

2) claim will be denied for having the non-standard accessories you have fitted to your car.

I was wondering if anyone of you have any experience that your insurance company denied your claim because u modified your car?

p/s: i'm especially worried about my 18" wheels as i know the maximum diameter is 17" for a corolla. Pls advice.

[Leroy]

Someone has said before that the insurer has to prove that it was the modified part that caused the accident, so as to reject the claim.

Regardless, you are not very likely to receive a payout (or are likely to engage in a lengthy legal battle) if:

1. You have not notified the insurance company of certain modifications. They may pay, but you will not receive the value of the mods (stereo, wheels, expensive suspension etc etc).

OR

2. Your modifications do not comply with the relevant state's legislation... eg voiding your insurance contract to begin with.

[jps137]

Hi guys, i'm trying to renew my insurance claim. Apparently, AAMI's premiem is a lot cheaper than RACV and other competitors.

Reading their terms and conditions, i found in small prints that you do not get covered if

1) your car was converted, altered or modified from its maker’s specifications.

2) claim will be denied for having the non-standard accessories you have fitted to your car.

I was wondering if anyone of you have any experience that your insurance company denied your claim because u modified your car?

p/s: i'm especially worried about my 18" wheels as i know the maximum diameter is 17" for a corolla. Pls advice.

Check with your insurer that they will cover your mods and if they don't this year and you choose someone else try again next year.

Many years ago I bought a Falcon (before discovering the error of my ways and converting to Toyota) and was insured with NRMA when I saved up a bit of money I decided to do a few mods and found NRMA would not cover me due to the suspension and the wheels. Suspension only lowered the car the same as the factory option sports suspension but NRMA would not cover it (after asking a few questions I found they would not even cover it if I had ticked the box for the optional factory sports suspension at time of ordering, but they would cover the XR6??) so I shopped around and Suncorp were actually cheaper for the modified car (suspension, exhaust, chip, wheels, air filter, wing and stereo - all of which were legal) than NRMA were for the basic car. However a year or two later Ford released the GT with the same size wheels as I had and suddenly NRMA would cover me and were cheaper now than Suncorp

Edited January 18, 2009 by jps137

[Buddha]

Working in insurance, this is something I'm passionate (or compulsive :P ) about.

It is always best to be up-front with your insurer and tell them about anything you have on the car (and anything in your driving history, too). It is far better to be told that they can't cover you, so you can get suitable cover elsewhere, rather than wait for a claim and find they deny it, and all you're left with is an expensive bit of paper.

Even better is to talk to insurers before you spend the big dollars so you know where you stand if you do modify the car.

Some reasons a company might decline a claim ... those big wheels that aren't quite legal cause a tyre to rub on the guard, and upsetting the handling and causing an accident ... maybe you're car is stolen, and the insurer denies the claim because of the big stereo (which you didn't tell them about) making the car more of a theft risk.

Leroy is right, it is up to the insurer to prove you wrong, but frankly, you just don't want the hassle.

[Matrix]

Working in insurance, this is something I'm passionate (or compulsive :P ) about.

It is always best to be up-front with your insurer and tell them about anything you have on the car (and anything in your driving history, too). It is far better to be told that they can't cover you, so you can get suitable cover elsewhere, rather than wait for a claim and find they deny it, and all you're left with is an expensive bit of paper.

Even better is to talk to insurers before you spend the big dollars so you know where you stand if you do modify the car.

Some reasons a company might decline a claim ... those big wheels that aren't quite legal cause a tyre to rub on the guard, and upsetting the handling and causing an accident ... maybe you're car is stolen, and the insurer denies the claim because of the big stereo (which you didn't tell them about) making the car more of a theft risk.

Leroy is right, it is up to the insurer to prove you wrong, but frankly, you just don't want the hassle.

Thanks for the valuable info guys. I guess u all have a point. It's better to pay a lil more for the premium and being up front with the mods than getting a claim rejected/ involve in a court battle. Cheers.

[Rolla Boy]

AAMI is ****, full stop :) ...

I'm with Shannons, everything on my cars are insured, legal or not and I've never had anything disputed with any claim...

Be upfront with them, much better off in the long run...

[JJCRU23R]

yea i remember with AAMI they listed down my grille, stereo as well as the aftermarket tail lights in my policy. simple enough.. just let em know.