Car value for insurance quote

flyer22

Hi there

Does anyone know which value you are supposed to use for a car insurance quote. I did an online valuation and got five different values:

1 original price new
2 franchise price current
3 independent dealer price current
4 private sale current
5 part ex current

Don't want to under insure or over pay - is there an industry standard?

Any help greatly appreciated?

Many thanks flyer22

DUTR

The premium shouldn't vary too much, choose the one closest to how you purchased the car.

phill99

You can't use the one closest to tje purchas price as that maybe 10 years ago.

Havibg just had a vehicle stolen, they used the current dealer prices to value it. That will probably be your best option.

DUTR

phill99 wrote: »

You can't use the one closest to tje purchas price as that maybe 10 years ago.

Havibg just had a vehicle stolen, they used the current dealer prices to value it. That will probably be your best option.

Perhaps I misunderstood the Op's question, I assumed they have recently purchased the car, if not then I agree like you say it is the current retail value (which they usually included on the renwal invitation).

dacouch

DUTR wrote: »

Perhaps I misunderstood the Op's question, I assumed they have recently purchased the car, if not then I agree like you say it is the current retail value (which they usually included on the renwal invitation).

Even if they had just purchased the car your post was incorrect, you insure for the current dealer prices for used cars and the the current new car for the first year or two of ownership from brand new depending on your insurer

InsideInsurance

DUTR wrote: »

I agree like you say it is the current retail value (which they usually included on the renwal invitation).

Most insurance documentation either just gives the customers own answer or most often just states "current market value" - it deals with the issue of the fact the vehicle depreciates over the course of the policy year.

As to what you should put in... realistically what you think the car would cost you to replace it today. I wouldnt over analyse it, most insurers dont use it for anything much more than triggering if you can have TPFT cover or if you need a tracker etc.

Of course, that said, if you have a new Mercedes AMG GT for £120,000 not mis declare it as £1,200 to enable you to buy TPFT cover.

DUTR

dacouch wrote: »

Even if they had just purchased the car your post was incorrect, you insure for the current dealer prices for used cars and the the current new car for the first year or two of ownership from brand new depending on your insurer

It must be have a go at DUTR day again today
Like I put earlier it depends how and when the person got the car.
My renwal like you say shows current retail value and then there is a figure which is closeish to the going asking prices, as it is likely they are only going to replace at the current retail price or thereabouts.

dacouch

DUTR wrote: »

It must be have a go at DUTR day again today
Like I put earlier it depends how and when the person got the car.
My renwal like you say shows current retail value and then there is a figure which is closeish to the going asking prices, as it is likely they are only going to replace at the current retail price or thereabouts.

It makes no difference how or where the customer purchased the car.

The Insurers are obliged to pay the dealer price for a used car.

It makes no difference if you purchased the car at an auction for £1k less than the used dealer price.

DUTR

dacouch wrote: »

It makes no difference how or where the customer purchased the car.

The Insurers are obliged to pay the dealer price for a used car.

It makes no difference if you purchased the car at an auction for £1k less than the used dealer price.

Like I say, it must be have a go at DUTR day today
I agree it makes no difference where the car was purchased, I agree the current retail value is the price insured or thereabouts.

I do find it odd that the OP has been given that many selections as at the end of the day the thereabouts retail is what will be the insured amount.

ETA unless this is a question for a GAP policy.

Richard53

InsideInsurance wrote: »

I wouldnt over analyse it, most insurers dont use it for anything much more than triggering if you can have TPFT cover or if you need a tracker etc.

But they won't pay out more than the insured value, so the value you set needs to be at least a reasonable replacement cost. No?

audigex

You can set it as high as you like, it's your valuation. That doesn't make any difference as to whether you'd actually get that amount.

It does seem to make a small difference to the premium for some insurers (using a quick comparisons site straw poll), but not a huge difference. Presumably they adjust slightly based on your estimate of the car.

I just put in the high end of the current approximate value: but I have gap insurance for another year so it doesn't make much odds to me.