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ricardo · Jan 21st, 2002, 03:03 PM

Sorry to disagree on this issue but my experience with UK motor insurers is that factory options are not considered to be "modifications."

My MINI One has alloys, leather steering wheel, Salt pack etc but it is insured with Norwich Union on their standard rating scale (i.e. Group 5E).

Insurers must be very specific about the questions they ask if they are to rely on the information when deciding whether or not to pay a claim.

The IOB's view on this issue is quite clear: modifications or alterations can be taken to mean something giving rise to "fundamental changes to the original performance specification, with emphasis on ' fundamental'"

The ABI Statements of Practice impose an obligation on insurers to ask clear questions in proposal forms on all matters commonly found to be material. It is difficult for an insurer to argue that a matter is material if it has not asked a clear question in that connection.

If insurers started rating vehicles according to factory option packs then the ABI rating system would be of no use at all - every single BMW would have to have a bespoke underwriting procedure.

Only aftermarket modifications should be considered material and even then only if they affect performance or make the vehicle more attractive to thieves.

Jan 21st, 2002, 03:03 PM	#8
ricardo MINI2 Senior Join Date: Dec 2001 Location: Norfolk Local Time: 08:31 PM Posts: 546 Offline	Factory Options are not Modifications For Insurance Purposes Sorry to disagree on this issue but my experience with UK motor insurers is that factory options are not considered to be "modifications." My MINI One has alloys, leather steering wheel, Salt pack etc but it is insured with Norwich Union on their standard rating scale (i.e. Group 5E). Insurers must be very specific about the questions they ask if they are to rely on the information when deciding whether or not to pay a claim. The IOB's view on this issue is quite clear: modifications or alterations can be taken to mean something giving rise to "fundamental changes to the original performance specification, with emphasis on ' fundamental'" The ABI Statements of Practice impose an obligation on insurers to ask clear questions in proposal forms on all matters commonly found to be material. It is difficult for an insurer to argue that a matter is material if it has not asked a clear question in that connection. If insurers started rating vehicles according to factory option packs then the ABI rating system would be of no use at all - every single BMW would have to have a bespoke underwriting procedure. Only aftermarket modifications should be considered material and even then only if they affect performance or make the vehicle more attractive to thieves.