The consumer’s issue:
“In March 2018, I bought a new 18-plate executive vehicle on a lease agreement. When taking out the lease, I also purchased several insurance policies, one of which was to cover tyres and alloy wheels. This was to avoid any potential damage charges on the return of the vehicle.
At the end of my contract, I was unexpectedly billed for damage to all four of my car’s alloys. This was confusing, as the policy I had taken out should have covered these costs. The finance provider said the dealership did not sell any such policy to me, but it is clear under the “what is covered” section of the agreement that wheels and tyres up to 22 inches in size are included.
To resolve my complaint, I would like the dealership to pay for the cost of repairing the damaged alloy wheels (amounting to around £440), as this should have been covered under the policy sold to me.”
The accredited business’ response:
- We have never sold a policy that covers and repairs alloy wheels. We do however, offer an insurance product for tyres and vehicle keys.
- The invoice supplied at the time of purchase clearly describes the details of the insurance product taken out by the consumer.
- The tyre policy the consumer referred to simply stipulates the size of the alloy wheels that are covered under the policy, so it can be calculated correctly. It is not a reference of what repairs are applicable.
- We therefore believe that the policy was fully explained to the consumer, and do not deem it to have been mis-sold.
The adjudication outcome:
- The adjudicator examined the tyre and alloy policy the consumer had purchased, as well as the accompanying terms and conditions of the policy.
- He noted, as the consumer said, that it did state under “what is insured”, that wheels and tyres up to 22 inches in size are covered. There was however, no clarification as to what the term “wheel” meant in this context, and it was unclear if this use of the word excluded aspects, such as alloys and trims. There is further confusion when reading “what is not insured”, as there is no mention of alloys, trims or caps.
- However, on the same page, it is explicitly mentioned that the policy was a tyre insurance for non-flat tyres, and provided coverage for tyres against accidental and malicious damage.
- The adjudicator noted it was clear from the intention of the wording, the policy would only cover the tyre and not the alloys.
- This is further seen in the actual terms and conditions of the policy, which explicitly stated under what would be covered, i.e. “four tyres fitted to your vehicle and one spare tyre”. There is no reference to the alloys or any other facet of the wheel, thereby indicating the policy in question would only cover the tyres.
- Finally, the adjudicator looked at the sales invoice which showed a tyre and key insurance policy was purchased but, there was no indication of any alloy insurance.
- The adjudicator concluded it is clear the manufacturer is able to provide alloy insurance. Nevertheless, it is unlikely the dealership had sold an alloy agreement to the consumer at the time of sale.
- Any repairs to damaged alloy wheels were therefore the consumer’s own financial responsibility, meaning their complaint was not upheld in their favour.
Conclusion:
- Both parties accepted the adjudication outcome, and the case was closed.
