insurance valuations

[mr.tourette]

Currently going through the annual rigmarole of car insurance shopping, as we know the used car market is pretty buoyant and as such the valuation that is generally autofilled is quite a bit out ..example, my daily is filled out at 5k, to buy a comparable car in the event of a total loss would be at best 8k, probably more like 9 though, when I alter this in quote it puts the policy up around 40 quid per car so 80 in total....thing is if I should make a claim what are the actual chances they are going to pay up over what THEY consider market rate which is obviously completely unrealistic in the current market.
Buggered if i want to cough up an extra 80 quid to these bandits for what may in effect turn out to be nothing in terms of extra cover..do i just leave it at their estimated value and pay less and argue the toss should i need to..I can imagine the response "sorry sir but you did fill out the application saying the value was 5k" or pay the extra in the hope should the worst happen I can prove that I can't actually buy an equivalent car for their underestimated value and need closer to my declared (realistic) actual market value.

 

[Argyll Andy]

I posted a response something similar in another thread a while back but can’t remember the exact details so the figures will not be accurate

My daughter insured her car at renewal, value auto filled the value box at say £7K. She then had a total loss 10/12 weeks later and was paid out £8250 by her insurance company. Explanation was that was the current market value and what they were duty bound to pay out.

I don’t know if increasing the value at renewal time would’ve increased her premium but they never quibbled once about paying out a different amount to the initial value submitted

 

[mr.tourette]

Thats interesting Andy, Im not sure how they can get away with increasing the premium with me filling in a value different to their estimate if they are going to pay out only market value anyway regardless of what my opinion is on that and what price i put in the box, seems like banditry to me

 

[Mr Tidy]

That's really unusual, unless it is a policy that has an Agreed Value - usually only available on Classic Car Schemes.

All the others just pay "Market Value" at the time of an incident - whatever they determine that to be!

I've never known the estimated value to change the premium by that sort of amount.

When I was working in that industry back in the late 70s value was only an issue if it was more than a specific sum - I think it was £20K in 1978, and there weren't too many cars that cost more than that at the time. For those that did it cost a few quid for each £1,000 over the £20K.

I think I'd be getting quotes from other insurers - I seem to end up having to do that most years anyway.

 

[Argyll Andy]

Just my logic but………..

I suppose the figure that auto populates the box is what they class as market value and by not changing it you’re accepting that you’re insuring it at the market value on that day. If you then make a claim and the auto value on that day is higher they’re paying out what’s “in the box”

If you change it to a higher figure then you’re saying your cars not valued at market value but higher so maybe the additional surcharge/payment is because you’re stating your car is worth more therefore attracting a bigger premium.

Where that theory possibly falls on its @rse is in the event of a claim if you paid the higher premium would they pay you out the figure you entered because of the additional premium or would they still pay you out the market value in the box?

But knowing the insurance industry you’ve probably hit the nail on the head with banditry

 

[Nanu]

Really there should not be a figure for market value. The insurance company should replace like for like and they pay the dealer whatever it costs. Isn't that market value?

 

[mr.tourette]

Indeed..normally I just crack on with this stuff and pay little attention as in previous years market value in those autofills are generally in the ball park but what with the buoyant market they seem quite off now..as i said to replace my daily at the moment like for like I'd be looking to 8-9k so a 5k valuation from the insurer wouldn't even get close never mind once they knock the excess off too..its all a bit sodding annoying tbh

 

[mr.tourette]

Just my logic but………..

I suppose the figure that auto populates the box is what they class as market value and by not changing it you’re accepting that you’re insuring it at the market value on that day. If you then make a claim and the auto value on that day is higher they’re paying out what’s “in the box”

If you change it to a higher figure then you’re saying your cars not valued at market value but higher so maybe the additional surcharge/payment is because you’re stating your car is worth more therefore attracting a bigger premium.

Where that theory possibly falls on its @rse is in the event of a claim if you paid the higher premium would they pay you out the figure you entered because of the additional premium or would they still pay you out the market value in the box?

But knowing the insurance industry you’ve probably hit the nail on the head with banditry

This is the bit thats the problem mate..tbh i wouldn't mind paying the extra knowing that id be getting extra cover but there's no explanation and its not an agreed price policy so why the increase..I honestly hate this bollocks every year paying out on 3 or 4 policies between cars and bikes..never made a claim in 30 odd years but have to put up with misdirection and bullshit with no clarity on whats going on

 

[Argyll Andy]

paying out on 3 or 4 policies between cars and bikes

What about one of those multi vehicle policies as I know some of them lower the risk as you can’t be driving the 4 vehicles at the same time?

 

[mr.tourette]

paying out on 3 or 4 policies between cars and bikes

What about one of those multi vehicle policies as I know some of them lower the risk as you can’t be driving the 4 vehicles at the same time?

No good mate.. looked into 5 different multicar ones.. All more expensive than buying individual for some reason. There's only so many times you can fill in these forms before you're looking for rope and the nearest tree and the comparison sites don't seem to do multi car quotes

 

[Argyll Andy]

paying out on 3 or 4 policies between cars and bikes

What about one of those multi vehicle policies as I know some of them lower the risk as you can’t be driving the 4 vehicles at the same time?

No good mate.. looked into 5 different multicar ones.. All more expensive than buying individual for some reason. There's only so many times you can fill in these forms before you're looking for rope and the nearest tree and the comparison sites don't seem to do multi car quotes

That’s a bu99er bud, it was the only other thing I could think of, stay away from the rope…………….

 

[mgrlane]

When I worked for an insurance broker 10+ years ago the following were true.

All the others just pay "Market Value" at the time of an incident - whatever they determine that to be!

Be prepared to haggle with them because as true as day turns to night, insurance companies will try to pay the least amount or nothing out.

If you change it to a higher figure then you’re saying your cars not valued at market value but higher so maybe the additional surcharge/payment is because you’re stating your car is worth more therefore attracting a bigger premium.

The extra costs could be for a number of things- some companies might not cover over a certain value so they had to underwrite it through another company- hence the increase in price. Other companies would discount for being under a certain amount.

If you are valuing a car at 10k it's always worth putting the value thorough as 9,999 to negate any increases for that extra pounds.

I used to speak with people who would value their cars as significantly higher than market rate and in the end there was no point talking with them to bring it down- they were going to get market rate anyway....

Agreed Values and "like for like" on mod's is always worth looking into. An example of this is I have a black series bonnet on my AMG- it's worth 1.7 or 2k on a good day. I get front ended and I am only getting a standard bonnet back without "like for like". And we can forget about new PPF as that's only going to happen out of my own pocket.