Misfuelling could prove costly

Research from the British Insurance Brokers' Association (BIBA) has revealed that many motorists accidentally filling up with the wrong fuel at the pump may not be covered by motor insurance.

Misfuelling is on the increase and is one of the top ten causes of vehicle breakdown, which affects 150,000 drivers each year in the UK, according to the AA. The cost of repairs ranges from £150 to £300 for a fuel drain, to over £5,000 if the car is driven causing serious damage to the engine. BIBA is urging consumers to purchase an adequate motor insurance policy from a broker which protects against just such an event and not buy solely on price alone.

The survey of major UK insurers revealed that reference was made to misfuelling in only 22% of comprehensive motor policies, leaving 78% of drivers unaware if their claim would be met. 40% of insurers stated they would not meet a misfuelling claim, when contacted by BIBA.

The insurance industry has a varied attitude towards misfuelling as BIBA's survey shows. All policies are different and the research highlights the need for consumers to fuel their car correctly, especially if they change to a new car, use a hire vehicle or have multiple cars in the household.

In the event of misfuelling the motorist should not start the vehicle, but instead notify the petrol station and breakdown company immediately. The possibility exists that an insurer may refuse to pay out in the case of a motorist who knowingly drives their vehicle with the wrong fuel in it because the policyholder may be deemed to have failed in their duty of care.

Graeme Trudgill, BIBA Technical and Corporate Affairs Executive, said: "Nobody goes out to put the wrong fuel in their car, if the motorist is innocent the insurance industry would normally treat this as an accidental damage claim.

"However, if the policy contains a misfuelling policy exclusion, then the motorist is unlikely to be able to claim at all."

Worth pointing out is that the consumer has the right to complain to the Financial Ombudsman Service, if the exclusion was not brought to their attention at the point of sale.