Driver whose towbar voided his insurance wins payout
Allianz tells Auto Express it was ‘right in principle’, but has agreed to cover the claim in full
A driver who was shocked to find his insurer reneging on his policy as he’d failed to mention he had a towbar fitted, will now have his claim settled in full.
Auto Express intervened when Stewart Crooks emailed us in desperation, facing what he thought could be a six-figure liability after being involved in a traffic accident with another vehicle. He told us his insurer Flow - an online brand owned by Allianz - had been planning to settle his claim, until he casually mentioned in a discussion about his vehicle’s value that he’d had a towbar fitted.
While the towbar had no bearing on the accident - and was the removable type stored in the boot at the time - Flow refused the claim on the basis they’d not been informed of the modification. The insurer’s position was subsequently backed by a Financial Ombudsman Service (FOS) decision.
Auto Express took up the case with Allianz, on the basis we felt that it - and other insurers - are failing to provide comprehensive information around what constitutes a relevant modification when they’re selling policies, particularly through price comparison websites.
We also wrote to the Financial Conduct Authority - responsible for setting the rules the Financial Ombudsman has a duty to interpret - to see whether they agree with our assertion that insurers are failing to comply with their duty of care to customers. We think our approach has been subsequently vindicated by the number of Auto Express readers who have contacted us raising similar concerns about confusing information around what may or may not constitute a ‘modification’ for insurance purposes.
Initially, Allianz stuck to its guns and refused to honour Mr Crooks’ claim, but did tell us that it wouldn’t be holding the driver liable for the third party claims it had already settled before being made aware of the towbar fitment.
However we pushed the company for a further review, and Allianz has today confirmed that the driver’s original claim will be honoured.
“Whilst the principle we applied was correct and supported by the FOS, we have now contacted Mr Crooks and confirmed we will make a payment to cover the cost of the claim in full,” said Allianz UK spokesman David Gwyer.
We’ve asked Alliance for a response to our assertion that it is failing to provide sufficiently clear information to customers on the subject of modifications, and are awaiting its response. We’re also waiting for the FCA response to our letter concerning the issues this case highlights more broadly about the information provided to customers by insurers.
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