Tell insurance about chip or not?

[Uomo]

Hey guys,

I am thinking about getting the ol'GTI a super chip.

Just wandering do you guys tell your insurance or not?

[VW Convert]

Hey guys,

I am thinking about getting the ol'GTI a super chip.

Just wandering do you guys tell your insurance or not?

Depends on whether you are a gambler or not. Tell them and pay a higher premium or keep quiet and take a chance on being wiped if you make a claim.

Feeling lucky?

Cheers

George

[anarchycamp]

What chip? theres nothing there.....

[BlackVr6ix]

don't tell them, it will just increase your premium unnecessarily.

**EDIT** Claim can only be denied if it can be proved that the chip was what caused the incident.

[Lima]

Ring around, some insurers won't increase your premium at all, whereas others won't cover it all.

I tend to think you might be okay if you keep it quiet, as mentioned, with the Mk5 it is a reflash only so nothing physical is altered.

If you want to keep it quiet from your insurer, perhaps the more pertinent question should be to you ECU reflash supplier, in that what happens if your car get nicked and you need to reflash the replacement car?

[VW Convert]

**EDIT** Claim can only be denied if it can be proved that the chip was what caused the incident.

This is not true actually, if you read your policy and or proposal form there is a clause regarding non disclosure. A typical policy would state words to the effect of:-
"If you make a misrepresentation to us or you do not comply with your duty of disclosure and we issue your policy with terms and conditions that are different to the terms and conditions that would have been issued had there been no misrepresentation or your duty of disclosure had been complied with, then :
We may reduce your cover...etc..etc.. or,

Cancel your policy or,

Treat your policy as if it never existed etc. etc....."

Every policy has such a clause and when you take out insurance, you sign a declaration acknowledging this thereby making it a part of the insurance contract.

The insurer would argue that the chip would have affected their decision to accept the risk and it is important that forum members make their decisions armed with correct information. It is of course unlikely that an insurer would find that the chip has been flashed but you never know.

Cheers

George

[BlackVr6ix]

I've only been doing insurance for a year now so i dont know everything, BUT im 99% sure that none of my insurers have denied a claim due to a chip.

RELEVANT LINK

What caused the loss?
Your insurer may say that you (or a third party) "were in breach of the policy" and this is the reason they are refusing to pay the claim. The law says an insurance company can only refuse your claim on this basis if your breach of the policy actually caused the loss.

Here's an example of when this might happen :

Your insurer refuses to pay your claim after a car accident because you were "over the limit". However, your car was hit from behind by another car while you were stopped at a set of lights. The accident would have happened whether or not you were drunk or sober. Because the accident was caused by the negligence of the other driver, your insurer cannot refuse to pay because you were over the limit.

[Lukev85]

i reckon dont say anything, it will only cost more if u do. No onw will know there is a chip in the car if you end up having to make a claim, and from my experience from NRMA they dont ask

[VW Convert]

I've only been doing insurance for a year now so i dont know everything, BUT im 99% sure that none of my insurers have denied a claim due to a chip.

That may all well be true, but it becomes a legal minefield and by not disclosing the modification you just give the insurer one more avenue not to pay. Of course, no insurer is going to refuse to pay in a case where the insured is totally innocent, but where it becomes an issue is if there is any sort of fault on the part of the insured.

One thing for sure, you don't want to be relying on the law to give justice, the old saying "The law is an ass" is very true, once the lawyers get involved anything can happen.

Anyone who wants to chip their car just has to ask themselves if they are prepared to take the risk of not disclosing it?

Cheers

George

[datracer99]

I'm insured with AAMI - there is no increase in premium if the car is chipped. They only increase if you start changing engine internals.
A friend of mine ran his Pug 206 GTI off the road at 120km/H in a 50 zone, and got a full payout from AAMI without any problem. Premiums are pretty competitive too.

[99gti]

My sugestion is to give your insurer a call and say I'm looking at installing software for the car that betters it's fuel consumption. Will this affect my policy?



You have disclosed and unless they ask you if it increases horsepower, you wouldn't be obliged to tell them.

[Uomo]

hahah...thanks all for replies!

I am with AAMI, so i think it might be ok.
I called today and asked about installing AWE TBE and they said no increase

[No457 Snowy]

I just went through this scenario with NRMA after I told them of my intentions to upgrade the ECU. They flatly refused to cover the car if I went ahead and I was advised my policy would be cancelled if I did it.

Not being a gambler, I cancelled the policy for them and went with Shannons who glady cover all my mods and not for much more $$$ and I can pay monthly with no penalty.

Been with the NRMA for 20 years, and not even a Windscreen claim, they can get stuffed.


Cheers,

Snowy

[anarchycamp]

I just went through this scenario with NRMA after I told them of my intentions to upgrade the ECU. They flatly refused to cover the car if I went ahead and I was advised my policy would be cancelled if i did

WTF??? I know 2 people (one GTI and one A3TQ) with tuned ECU who have policies with NRMA and have declared that the ECU is tuned.

[REDMKVGTI]

Pfft, if you have an accident as if they're going to check the ECU