Car purchase price and insurance companies

In people's experience, are some car insurers more likely than others to honour the purchase price when they are shelling out to replace a car?

The mother in law recently wrote her car off, her fault (debatable but that's a long story) so claimed against her fully comp insurance.

She hadn't had her car long and had paid over the odds for it, but it didn't matter (until she came to claim) as it was exactly what she wanted and was mint.

The amount she got back was pitiful, i'd have fought them on it but they managed to convince her it was fair.

I know others who have found themselves in a similar position, what's the point in them asking what the car is worth when taking out insurance?

Reply to
R D S
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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

Reply to
Chris Whelan

In message , R D S writes

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... ;-)

Reply to
Gordon H

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.

Reply to
R D S

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.

Reply to
Mrcheerful
[...]

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

Chris

Reply to
Chris Whelan

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

Reply to
Duncan Wood

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