Thanks Alex, thats just the thing. They say they have the right to refuse the claim, I just don't know anyone personally where they have had their claim refused. I do know many people with modded cars.
Back in 1996 when I owned a N14 SSS with the usual bolt-ons,dark tint, lowered, cat back exhaust ,intake pod and 17" sparco's, I t-boned a lady that ran a stop sign. I had no problem in that instance because I was not at fault and she admitted fault.
I know I am not going to get a definitive answer on this one, just like people to share their experiences.