Question:
Doesn't the insurer have to prove that the defect or modification has contributed to the accident?
ie if you run into the back of someone and have bald tyres they can refuse based on your car being unroadworthy.
If you have been hit from behind and happen to have unroadworthy tyres they cannot refuse you claim.
I would argue if you car was stolen they cannot refuse a claim based on minor mods, but only have to pay up based on the standard vehicle.
https://insurancelaw.org.au/factshee...sed-factsheet/