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Steveo1

Car insurance

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Hi All. 

 

Just a quick one.

 

Having a chat at work about car insurance and the topic of the value of the car your going to insure. 

 

I say the value of the car your going to insure is the amount you paid for the car when you bought it.

 

My boss says it’s what the value of the car is when your insurance is due for renewal, so every year you need to get a new value for you car when your insurance is due.   

 

It has come about as the Machinist where I work has just renewed her insurance and she paid £5500 for the car 2 years ago, as its now not valued at that she is insuring it with a value of £4000. 

 

I know they I’ll only give you the book price if it’s written off but I’ve always insured for the value I paid for the car. 

 

Hope this makes sense. 

 

Can anyone confirm which of us is right. 

 

Cheers Steven. 

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I insure it at the value that I either paid for it or the value that I feel it'll fetch at sale (within reason)

 

Fully agree; going with the insurers value is only going to leave you out of pocket, IMO, more so if you're someone who takes care of their car and does all necessary work etc

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Best to insure it at market value/the cost it will be to replace your car if something happens. If you bought a car cheap (a good deal) , would you say it was worth less than market value when insuring it . . . .  . i think not.

 

Unless you are insuring a car with a guaranteed value pay out value, it makes no difference to what you say as its subject to market conditions. 

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In my experience having written off a couple of bikes in my time. The value price is irrelevant they will only give you what the market value says it's worth for it's age, unless you say it's worth a lot less then market 

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The question they ask is ‘what is the car worth’. That doesn’t mean ‘what do you wish it was worth’ or ‘what did you pay for it years ago’. They want to know approximately what the current market value is.

 

I have no idea why they even bother asking, but whatever you tell them isn’t what your car is insured for. Your policy will state that you get ‘market value’ back in the event of a total loss, which means market value at the time of the loss, not market value at the time they last asked you.

 

(obviously the above refers to standard policies, not pre-agreed value insurance sometimes used on classic cars)

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I had a prolonged run in with our insurers after a driver came straight out of a slip road into the path of her indoors.  Total write off of course but then the fun started.  The offer was derisory to say the least. Having been involved many years ago in the car business I was however able to take them on.  Cut to the chase, after demanding to know what their estimate was based on, they e-mailed me copies of various similar cars for sale in Auto Trader!  This was an independant firm of assessors used by our insurers and when I finally managed to actually speak to them on the phone it rapidly became apparent that they were simply insurance men who wouldn't know a camshaft from a calm day.  Upshot, I went directly to the insurers informing them that I was quite happy to go to court and they asked how much I wanted to close the case.  Up £1200 later it was agreed, though still nowhere near the cost of a like for like replacement.

For anyone involved in a no fault accident where the other driver admits liability.  Do not make our mistake of going through your own insurers.  Deal directly with those of the other party.  You will almost certainly get a better settlement., but I agree totally as to why they ask you the value of your car as there is no way that's what they will pay out.

Missus came out of this with only a few cuts and bruises.

IMG_20151015_105355.jpg

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Certainly makes you think.  This was 40mph.  Just another 5 or 10 would have been another story.  Didn't want to give more detail on my far too long thread, but after they gave me the examples on Autotrader which I disputed, they had the audacity to email me two more examples on Gumtree within my locality, which spec wise bore no resemblance to her car at all.

 

If I may repeat an old Irish saying. 'God keep my feet out of them'.:oops:

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