Many UK drivers could unknowingly invalidate their car insurance by failing to declare a common feature: a tow bar. This issue arises due to unclear information provided by insurance comparison websites, often leaving customers unaware that a tow bar counts as a “modification.”
Auto Express recently highlighted the case of a driver whose insurer, Flow (owned by Allianz), refused to cover a claim and cancelled his policy after a collision because he hadn’t listed his car’s tow bar as a modification. The driver purchased the policy through MoneySupermarket and selected the "unmodified" option, as the website's guidance didn’t mention tow bars specifically.
Comparison websites often provide vague descriptions of modifications, with some simply stating they include “changes to the car’s original specification.” This lack of clarity has left drivers at risk of policy cancellations and unexpected costs. In the highlighted case, the driver faced a six-figure bill due to the insurer’s refusal to pay.
Tow bars are a common addition to vehicles, especially for drivers who tow caravans, horseboxes, or boats. While some insurers, like AXA, state that tow bars don’t affect accident risk, they still require customers to declare all modifications, including roof racks and bike carriers. However, many policy documents fail to reference tow bars explicitly, creating further confusion.
The Financial Ombudsman Service (FOS) ruled in favour of Flow in the driver’s case, citing the lack of disclosure. However, Auto Express argues this decision is unfair given the unclear guidance on modifications. The Financial Conduct Authority’s (FCA) Consumer Duty rules, introduced in July 2023, require insurers to ensure critical information isn’t hidden in terms and conditions.
Chris Rosamond, Auto Express’s current affairs editor, described the issue as a “trap for the unwary.” He has called on the FCA to investigate and push for clearer information on insurance websites. Rosamond also urged insurers to explicitly ask customers whether their car has a tow bar during the quote process.
For now, drivers are advised to inform their insurers of any modifications, no matter how minor they may seem, to avoid falling into this costly loophole. This includes features added by previous owners or dealerships. Without clearer rules and guidance, many drivers remain at risk of invalid insurance due to oversights that could have devastating financial consequences.
