A 21 year old Ontario man had his policy cancelled following a crash which “totaled” his vehicle. At the root of the issue was an unreported CAD$2,000 exhaust upgrade.
The individual leased his 2020 Subaru BRZ and was later involved in a severe car accident in mid-March. A little while later the insurer deemed the vehicle a total loss, a claim worth approximately CAD$35,000. However the driver later found out that the insurer will not cover the claim due to unreported modifications and upgrades.
The modifications were deemed to improve or alter the performance, appearance or value of the vehicle. The insurer stated that any vehicle owner must inform their insurance carrier of any modifications as it can alter the risk assessment assigned to the policy.
This story has a happy ending. Due to the investigation by the TV station and the request for comment, the decision was reversed and the claim was paid. However, the next policyholder might not be so happy.