Leaving keys in vehicle 'can invalidate insurance'

Drivers who leave their keys in their vehicle may invalidate their insurance cover, it has been reported.

According to the Financial Ombudsman Service FOS, almost all motor insurance policies include a clause excluding cover for theft, attempted theft or malicious damage in such circumstances.

The FOS says it is "frequently called on" to rule on disputes where the consumer believes the insurer has applied exclusion clauses unfairly in order to turn down a claim.

When deciding such cases, the service reveals that it considers all the circumstances of the incident, particularly where the car was parked at the time of the incident, where the owner was in relation to the thief, and whether reckless disregard for the risks had been shown.

Mitigating circumstances may be taken into account, the FOS said, while the manner in which the insurance policy was sold and whether the relevant clause was brought to the driver's attention may also be a factor.

The FOS is a public sector institution established to settle individual complaints between consumers and financial services providers out-of-court.

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2009-12-22 13:39:06 © Moneyextra.com