Lots of things sound like they technically make insurance invalid, but I know loads of people who've crashed and their cars have only ever had a casual glance by an inspector. Even one mate with lowering springs, big wheels, big exhaust, induction kit etc, nothing declared and they still paid him out for his car (but not the mods) when he crashed at fault into the back of someone else. When I crashed my car they didn't even send an inspector to look at it. If they spent hours and hours tearing every car apart trying to find reasons not to pay out, can you imagine how much that would cost them? I think they just prefer to pay out and put your premiums up for the next 5 years to get their money back.
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