Insurance for Vehicles with a Chip

Hmmm, I would not like to try and fight that one olcoolone. Deliberate non-disclosure is making a false statement. You are giving the insurance company an easy out by breaking your contract with them.

KK

I beg to differ.

Failing to divulge any form of modification (especially a performance enhancing one) has the propensity to render one's insurance invalid. It's in the product disclosure statement/insurance agreement that you sign up to.

So, you clean up a $200,000 Benz and write off your own vehicle at the same time. Your Insurance Company hangs you out to dry and the Insurance Company for the Benz comes after you. You lose your house and end up penniless.

Not a risk I'd even consider.

Jim.

Yes they ask specifically what modifications are done to the vehicle. In the event of accident it is probable I wont get a chance to remove it and just as likely that when the damage is being assesed by the insurance assesor that the device will be spotted. I think non disclosure would be good enough reason to have my claim rejected after alll accidents are expensive and they dont like paying for the damage either if ots not necessary. Of course if the vehicle is stolen I will bear the loss also of the steinbauer chip if its value is not added top the accessories, I only had it fitted to help overcome the vehicles aversion to hills as it seemed cheaper at this stage to do that rather than sell the car and start again.

So guess I am trying to shortlist some chip friendly insuramce companies as they tend to react as though I had just dropped in a V8 chevy.

In almost all policies - Non disclosure of any kind is sufficient reason to deny a claim regardless of whether you can prove that it was not a contributory factor.

You would spend 5 times the insurance payout fighting it in court and probably not win costs.

It is clearly stated in almost all policies about non disclosure and the consequences.

Beware the tester of this insurance clause.

There is a clause in the Commonwealth Insurance Act that basically says that if an insurer refuses to pay a claim based on anything that did not contribute to the claim, then they are breaking the law. This has been tested many times and the insurers have lost. I read this in a Trade Magazine at the motor vehicle dealership I was working at.

One of the test cases was an insurance company refusing to pay on a claim because the driver had higher than the legal limit of blood alcohol at the time of the crash. They lost because the claimant successfully argued that regardless of his blood alcohol reading, the accident was not caused by any fault on his behalf. The insurer lost and had costs awarded against them.

The article cited many scenarios and a modified vehicle was amongst them. the fact that the mod was subject to non-disclosure did not alter the fact that the mod did not cause the accident. Again, the insurer lost.

The moral is, don't take a refusal by an insurer as the end of the road if you've been in an accident. Fight the bastards.

I'll get in touch with the mob I worked for and see if the magazine is still in the smoko room. If so, I'll get more details of the exact wording of that clause.

Cheers

Russ

I think that you will find some where in your insurance contract a catch-all clause that asks you to disclose anything that may effect the policy. Failure to disclose may void your policy completely.

KK

Questions like this are interesting as the answers may not be clear cut. First up, I say disclose everything you are required to disclose to the insurer, and a chip is a modification and therefore you are obliged to tell them.

Notwithstanding, if you had an accident as described, whilst they may have grounds to knock-back the claim a smart lawyer may argue the case depending on what caused the accident.

For example, if a wheel fell off your vehicle (or pick a scenario) it is unlikely the chip was a contributing factor....however if speed was a factor then forget it..they'd argue the chip enhanced the vehicles power.

I say, don't put yourself in this situation.....disclose all ...

Cheers

The underwriting requirements are exactly the same for both Third Party Property Only & Fully Comprehensive insurance policies.
The insured vehicle must be RWC & legal.

AAMI nice people 24 hour quotes and claims hotline. I have just been advised that they are unable to offer cover on my vehicle. A on paper increase in power iof 15% in the hands of a rodeo driver not used to 3 digit kw power seems to be of concern to insurers. After vehicle questions there is modification questions at which point the insurance is declined but I do appreciate your information. I probably need to find softer less alarming words other than power increase to descriibe what it does.

I did specify mine as a D'tronic Engine Management System. ;)

QBE insurance took the words engine management system without a problem except the quote was expensive. I ended up with insurance at GIO extra $100 excess should have checked before I bought the chip.

Possibly...but is it any better that people are dishonest with the Insurance Companies in order to get a cheaper premium or cover at all? It is a way-street...

At the risk of sounding like I am defending insurance companies (they are big enough to do that themselves!), both parties have a mutual obligation to each other and for the most part you'll find 99% of claims are paid without issue... they wouldn't see any business if this didn't happen...

Noticed an error...

Possibly...but is it any better that people are dishonest with the Insurance Companies in order to get a cheaper premium or cover at all? It is a way-street... ...it is a (two-way) street...