Hundreds of thousands of drivers void insurance by having this common feature installed in their cars…

Drivers could risk having their car insurance invalidated if they don’t declare that their car is equipped with a common feature shared by hundreds of thousands of vehicles.

Car owners are given unclear information when purchasing cover through comparison websites, with the feature provision often hidden in fine print or part of vaguely worded guidance on what constitutes a change when completing an online quote.

The item in question is a towbar.

Although there is no exact figure for how many British cars have one installed, the one million members of the Caravan and Motorhome Club – and the number of people who have to pull horseboxes and boats – suggest there are hundreds of thousands on the road.

Auto Express said it was contacted by a motorist who was left with a six-figure repair bill when his insurer refused to pay a claim and canceled his policy for failing to list his car’s tow bar as a ‘modification’ while driving . a quote via the Geldsupermarkt comparison website.

There are now major concerns that car owners across the country could be unknowingly driving with disability insurance if they have not declared the practical function as a change.

‘We were contacted by a desperate driver after his insurer, Allianz-owned Flow, canceled his policy following an accident because he had not mentioned his car’s tow bar as a change when purchasing cover,’ explains Chris Rosamond, current affairs programme. out. editor at Auto Express told us.

‘He had purchased the Flow insurance through MoneySupermarket and selected the ‘unchanged’ option when requesting quotes as the help link on the website did not mention that the tow bar was a change.’

The price comparison site’s text in the pop-up help window in the change section of the online form reads: ‘What does this (change question) mean?

‘If you or a previous owner have made a change from the original manufacturer’s specification, such as alloy wheels, air conditioning, bodywork, exhaust system or tinted windows, please add it here.

“If you’re not sure if your car has been modified, check the history to find out.”

Auto Express found that competing insurance comparison websites’ guidelines on what constitutes a change are also vague.

Others simply stated that ‘alterations are changes to the original specification of the car’ and that these can be ‘mechanical or cosmetic changes inside or outside the car’.

Rosamond says some comparison websites do not provide easy or obvious routes to information about whether a tow bar is a relevant modification to a car’s original specification.

Furthermore, he warns that there is no clear link to information about the potentially devastating consequences of failing to comply with the requirement to notify insurers of something as simple as hitting them.

‘The driver who contacted us told us he was at his wits’ end, adding that, after a routine car accident, his insurer had refused to honor his insurance at the last minute, leaving him at potential risk of had six figures. expense and incredible stress and anxiety for him and his family,” Rosamond said.

‘He said his previous insurer had raised no concerns when he informed them about fitting a tow bar.

‘This, combined with the fact that no towbar was mentioned in the modification part of the purchase process on GeldSupermarkt, meant that he had no reason to click ‘yes’ when asked about the modification.’

After a nine-month dispute with Flow – a subsidiary of Allianz – the Financial Ombudsman ruled in favor of the insurance company.

However, the Financial Conduct Authority’s Consumer Duty rules – which came into force in July 2023 – state that ‘important information should not be hidden in long-term terms’.

An Allianz spokesperson on behalf of Flow told This is Money: ‘We understand the distress this accident has caused. Making any changes to your vehicle could have serious consequences for your car insurance policy if not declared and could result in a policy being declared invalid.

‘The policy chosen did not allow for any changes and if we had been informed that a tow bar had been fitted we would not have taken out insurance.

‘The FOS has assessed this case and its binding decision found that the outcome we reached in this case was fair and reasonable.’

A spokesperson for MoneySupermarket said: ‘We are confident that the supporting information we provide throughout our customer journey meets the FCA’s consumer rights requirements.’

However, Auto Express says it is not yet completely convinced.

That’s why the car magazine and website has written to the FCA asking for an investigation into the information about changes on insurance websites.

“We believe the current wording typically shared on insurance websites regarding ‘changes’ is a trap for the unwary,” Rosamond added.

‘Insurance sales and comparison sites need to provide more clarity and detail about what constitutes a change – especially in relation to towbars, as we have seen – and provide specific information on the potential risks of an incorrect declaration.

Auto Express also believes that it is unreasonable for insurers, the FOS or FCA to expect an average customer to know that fitting a detachable towbar is the type of change that could lead to a canceled policy.

Rosamond continued, “We also believe that if an insurance company offers a policy that it knows does not cover cars with tow bars, it has a responsibility to make that exception clear to potential customers before they take their money.

‘We would like potential customers to also be asked whether their cars are fitted with a towbar before a policy is even issued.’

Allianz/Flow told Auto Express it would not seek to recover third-party costs from the driver – even though it was entitled to do so following the Ombudsman’s decision, but Rosamond wants the insurer to go further and cover the driver’s costs .

Rosamond concluded: ‘We told the insurer that we hoped that cover would be restored to the driver, and that the third party claims in his case would be settled.

‘We also said that we believe that Allianz/Flow does not appear to be acting in good faith given the lack of clarity on the information provided regarding the fitment of the tow bar at the point of sale for its policy. Indeed, it seems to us as if Flow committed a fine-print violation – one that has no bearing on the claim itself – simply to avoid a payout.

“We are waiting for responses, but it is clear that something needs to change so that no other driver has to go through a similar ordeal.

‘In the meantime, we urge all motorists to inform their insurers if any changes have been made to their car – no matter how minor they may seem, and whether they made them themselves, whether it was a previous owner or even the supplying dealer – to avoid getting caught up in the same way.’