We regularly hear about insurers refusing to pay claims or making unusual or confusing decisions. A recent example prompted us to clarify whether Paint Protection Film (PPF) is a modification and whether it should be declared to your insurer as such.
What is Paint Protection Film?
There are plenty of measures that drivers can take to protect their vehicle from harm. One of those is Paint Protection Film (PPF).
PPF is a clear, thermoplastic film that can be applied to the surface of a new or used vehicle, to protect it from chips, scratches, splatters, and other minor damage. PPF is designed to offer long-term protection, helping to maintain the condition of your vehicle and protect its resale value.
Often described as 'self-healing', the structural properties of PPF mean it can repair minor scratches and scuffs over time when exposed to heat, such as from sunlight.
Is PPF a modification?
We have seen instances where a direct insurer has stated to a car owner that the installation of PPF would mean that they automatically cancel the policy, midway through its term.
This puzzled us, as in most cases the owner of a car spends a significant sum of money to protect their vehicle with PPF – in some cases as much as £10,000 for full car coverage. This means that they are less likely to make a claim for damage to paintwork, as the film provides protection from minor damage such as parking scrapes. It is also a very good indicator that the owner cares about their vehicle and is likely to take better care generally – both positive factors.
It is important to confirm that PPF is a modification, unless installed by the manufacturer during the manufacturing process – and this is extremely rare. Most owners opt to have the work done once the car is delivered. This is no different to other vehicle modifications, and as such it should be declared.
If you chose not to declare PFF, it is becoming apparent from our research that some insurers are declining to pay claims.
I'm a Lockton policyholder – is my car covered?
It is rare for us to make a categoric statement around policy cover, however in this instance we believe that complete transparency is vital.
On this basis, we can confirm that under our scheme policies underwritten by Aviva, a claim will NOT be declined purely on the basis that you have not declared that your car is protected by PPF, whether in full or part.
If you haven't told us, then the insurer may decide that the PPF itself will not be insured, either to be replaced following accidental damage or as part of a total loss settlement, including theft.
If you have told us, then we will adjust the insured value of your vehicle to include your PPF.
Situations like this highlight the role of an insurance broker. We used the word “direct” earlier and this is where you deal directly with the insurance company. There is nobody to act on your behalf, to analyse a policy wording or to challenge a refusal to provide cover or settle a claim which is valid.
Future articles will cover the role of a broker, and we will also go under bonnet and discuss modifications in more detail.
If you have any questions, then please reach out to a member of the team.