Tell insurance about chip or not?

[No457 Snowy]

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.

I made several calls to them about this before cancelling my policy and changing to Shannons and spoke to several of the staff including their supervisor/managers,..... they won't cover ECU upgrades on Turbocharged vehicles.

I can't imagine why they would check either, but at least now I know I am covered regardless of whether they do or not and everything is up front.


Snowy.

[moguzhan]

theres no point telling the insurance you got flashed.

you dont tell them its "chipped" they automatically think its been modified like a wrx or skyline.

you can tell them its "flashed" and they will have no bloody idea what you're on about.

the flash hardly makes the car "that" faster anyway.

the repairer will most likely reflash the ECU if theres engine damage anyway and you will lose your flash.

insurers know that most turbo drivers are going to be under 30 and likely to drive a modded wrx, skyline or jap turbo and hence wont even touch them.

a vw golf gti or jetta with a small mod like a flash with an air intake and exhaust is hardly going to make it a supercar where you're going to lose control and make quarter mile drag runs against a v8 or rotary that produces 500hp.

my 2 cents...

[No457 Snowy]

theres no point telling the insurance you got flashed.

you dont tell them its "chipped" they automatically think its been modified like a wrx or skyline.

you can tell them its "flashed" and they will have no bloody idea what you're on about.

the flash hardly makes the car "that" faster anyway.

the repairer will most likely reflash the ECU if theres engine damage anyway and you will lose your flash.

insurers know that most turbo drivers are going to be under 30 and likely to drive a modded wrx, skyline or jap turbo and hence wont even touch them.

a vw golf gti or jetta with a small mod like a flash with an air intake and exhaust is hardly going to make it a supercar where you're going to lose control and make quarter mile drag runs against a v8 or rotary that produces 500hp.

my 2 cents...

Yep, you have to be very careful about how you try to explain it to them for sure. I found the NRMA staff kept asking what does it do? etc, etc. Then invariably they had to go and discuss it with their supervisor, then it was just a case of "Computer says NO".

On the other hand, the guy from Shannons I spoke to was a car nut and understood all the mods, just like talking to someone else into cars, and they are now all listed on my policy including "APR ECU Upgrade".

Actually if I was to do it over again I would just say nothing, the NRMA didn't deserve my honesty, after taking my money for 20 years as a customer with no claim history they couldn't make a sensible judgement call.


Cheers,

Snowy.

[Mr R32]

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

In many cases, its all on the day and in the circumstances. Depends on who you get at the insurer when you take out/renew your policy and if you make a claim, the circumstances of the accident. Sometimes there's no logic in any of their decisions. I had a mildly modified Honda for years under a fleet insurance policy with my employer and had disclosed all mods (wheels/tyres/suspension/swaybars/exhaust/ICE) - they were even separately insured under the policy. When I resigned and had to opt out of the fleet policy so I asked if I could re-insure with a separate policy with them. I was told that they don't insure modified vehicles at all. I'd never made a claim and they'd been taking my $$$ for 7 years. I even spoke with a supervisor, blah, blah, blah and got the brush off (wonder if I was ever insured the whole time). Point is, they are fickle, can't be trusted, are only interested in taking premiums and aren't minded to pay out on claims. For my 2 cents, I agree with the above comments; the failure to disclose is (or in their view may be) relevant to the insurer's acceptance of the underlying risk - had you disclosed it, they would have refused you insurance and therefore decline the claim on the basis that the policy would never have been written. Sure, honesty may not be the best policy (in the sense that it costs you more) but ultimately there's too much riding on it not to disclose it. Better to pay a little more premium and sleep at night knowing you get a cheque if your pride and joy is written off. Isn't that what insurance is all about?