If you change anything on your car that can affect its safety, or performance, or the odds of it being vandalised or stolen, then you must tell your insurer. This can even apply to fitting new alloy wheels, built in entertainment systems or satellite navigation. However, the Financial Ombudsman Service says car insurers must prove that there has been a significant change to the insured risks before cover can be withdrawn.



In one case, a car owner claimed after a Mercedes he bought second hand for 22,000 pounds was badly vandalised, causing 6,000 pounds of damage. The problem was that he was not aware that some of the car's features resulted from modifications that were requested by the original owner. When the insurance assessor noticed modified seats and headlamps, it refused to pay out until he paid an extra 1,000 pounds on his premium and the claims excess.

Being over a barrel, the driver agreed, but thinks it was very unfair. He said, "I should not have been penalised as I did not know that the car had been modified." It is clear that insurance companies differ in their policies over what modifications they expect drivers to inform them about.

Many insurance brokers have also seen other examples of controversial decisions. A spokesperson for the British Insurance Brokers Association, commented that whilst drivers have a duty to disclose important changes, some insurers push the definition too far. "We have even seen silly situations where an insurance company has tried to throw out a claim on the grounds that the car had a roof box."

One of the big name insurers has confirmed that it has several hundred such disputes each year, which on the evidence hardly seems surprising. The insurer exempts any modifications made before a car leaves the factory, but requires any later alterations to be declared.

There motor underwriting strategy manager said, "We price the insurance risk on the information the owner of the car provides and if that information proves to be incorrect we are within our rights to void or reassess the policy." But some insurers do admit that some modifications, like tweaks to the engine, may be impossible for many people to detect. In the end unresolved disputes like that can end up at the door of the Financial Ombudsman Service. The Ombudsman's, says the onus is on the insurance company to explain their actions. "We expect the insurer to justify why the modification was relevant. It has to be something that increases the risk they are taking on."

Which? the consumer group, tells anyone buying a second hand car to check with the seller if there have been any modifications and they are still not sure, to consult a local dealer. But to be honest, few would even think about the necessity to declare something like satellite navigation.

But please remember if there is one item you must not economise on, it is your child's safety seat. These are absolutely essential from the day the baby arrives and right through the following ten to twelve years. There are laws and regulations governing their use - so make sure you are aware of the legal requirements.