Car insurance - how much difference does car value make?

humbug12

Just renewed my policy for my 3 year old car and noticed that the insured value is still £18k which reflects the new price. Checking Parkers Guide suggests my car is worth around £10k.

I realize that different insurers may factor that differently, but how much difference (min/max) should I expect that to make if I had reinsured with the lower valuation assuming other factors (voluntary/mandatory excess, etc) remain the same?

Quentin

Do some dummy quotes on line with various valuations and see what difference if any it makes to the premium.

Unless you have an agreed value policy you would only get the market value in a write off claim.

InsideInsurance

The minimum impact it will have is simply to decide if they allow you to have a TPFT policy or not and/or be one of the criteria in deciding if you must have a tracker fitted.

The maximum impact it could have is to impact premium and also create a secondary upper limit for any total loss, so if you were in the minority that under value their vehicle it is your valuation rather than market value that is applied but this would be rare these days (if it happens at all)

As to the percentage impact, take Quentin's advice and do some dummy quotes and see how prices move for a single insurer. I would be surprised if it is massively significant

forgotmyname

I have noticed that some insurers wont cover cars if you put the value below £2000.

So you may get some that do the opposite, They wont quote for 3 year old cars over £10,000.
But whilst one may drop off the list anotherm,ay appear.
They all have their own preffered client list.

Try a dummy quote but not your real details. See if lowering it actually lowers the quote.

How does adding an accident prone driver to my clean record lower my premium?

System

I was told years ago that my premium was higher because the car was not worth much. Their argument was I would take less care.