Car purchase price and insurance companies

On Sat, 09 Jun 2012 18:26:16 +0100, R D S wrote:


You are not telling them what it's worth, only what *you* think it's
worth. If your estimate is less than the market value, that's all they
will pay out. If your estimate is above market value, they won't pay your
valuation.

For new cars, you can get insurance that pays out the price of a new car
if it's written off in the first year. You can also negotiate an "agreed
value" policy for an increased premium.

For any other situation, many insurers will make a first offer that is
10% or so below a fair value on the basis that most folk will haggle; it
gives them the room to increase the offer, and a bonus to them if you
don't.

It's a fact of life that most owners think their car is worth more than
it is. Also, the insurer isn't obliged to pay the cost of replacing your
car, only what the car is worth in cash terms. IOW, what you might expect
to get if you sold it.

Usual advice is to find identical cars in your area advertised for sale,
and pass that on to the insurer.

FWIW, when my Focus was written off, I got an offer around 20% higher
than I expected, so was very pleased.

Chris

--
Remove prejudice to reply.

On 09/06/2012 19:22, Chris Whelan wrote:

I get that but they ask what the car is 'worth', what's the point?

I should be able to insure a car for what I want to be repaid in the
event of a loss, the insurance company can then quote a premium as they
see fit.

In her case the car was a Y Reg Civic in exceptional condition, in order
to replace it like for like she would have to pay top buck again (after
struggling to find one in such good order at that age) or buy something
newer.
She got about £800 which was about half what she paid for it, not good.

On Sat, 09 Jun 2012 20:14:17 +0100, R D S wrote:

[...]


Looking at what they are going for, that is a bit low. I'd have expected
around £1,200.

Chris

--
Remove prejudice to reply.

Zurich paid out the market value of my Cavalier when I wrote it off in
2000, just over £4000 for a 5 year old car in good condition.

But it ain't cheap insurance...    ;-)
--
Gordon H
Remove "invalid" to reply

they pay out the present market value for a car in similar condition, so
find lots of ads that match that description and send them.

What was paid for the car has no relevance at all to what the ins. will pay
out.

wrote:


Yup, I got 5% less than I'd paid for my A6, 14 months & 28000m later.