We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Car value when getting insurance quote
then I inserted the actual price I paid at the dealers , and it increased the premium by just £2 more but I noticed in the car insurance documents the car value still says ‘market value’ and not what I put down.
so why the difference ? £2 in this case is neither here and there but I still don’t understand the significance of this question
Comments
-
They will usually only pay out the "market value", which by necessity can only be an average. And it will almost certainly be less than you paid for it originally (is this what you mean when you say they undervalued it? The market value is not what you paid for it. Gap insurance is specially designed to cover the difference between what you paid and what the "market value" is, if you want to pay extra for it). If the worst happens and your car is written off, and you dispute the value they offer, you can negotiate with them - if you can provide reasonable proof that your car is indeed worth more than what they've offered.That's also the reason why you can buy an "agreed value" policy, often used for rare, unusual or classic cars.0
-
I haven’t bought the car yet so the figure I will pay if I buy is a ‘new’ figure and not what they value the car by.Will look at GAP insurance thanks0
-
shaggy said:I tried a little experiment with my insurance quote - the insurance company massively undervalued my car when they auto inserted a random figure so I got a quote of £402 with this arbitrary figure
then I inserted the actual price I paid at the dealers , and it increased the premium by just £2 more but I noticed in the car insurance documents the car value still says ‘market value’ and not what I put down.
Remember, they base their figure on industry-standard price guides, which are compiled and regularly updated from thousands of sales nationally.
Ultimately, if you disagree with their valuation in the event of a write-off, you can escalate it to the financial ombudsman, who will adjudicate - and explain exactly why they reach whatever decision they reach.
https://www.financial-ombudsman.org.uk/businesses/complaints-deal/insurance/motor-insurance/vehicle-valuations-write-offs
0 -
i simply put the price i am paying for the car in a few days when I collect at the dealers, which is massively different to what they value it at - which again brings me back to the original question --- why ask this question at all when insurance companies will give you whatever market value of the car is in the event of a claim0
-
shaggy said:i simply put the price i am paying for the car in a few days when I collect at the dealers, which is massively different to what they value it at - which again brings me back to the original question --- why ask this question at all when insurance companies will give you whatever market value of the car is in the event of a claim
1 -
Car_54 said:shaggy said:i simply put the price i am paying for the car in a few days when I collect at the dealers, which is massively different to what they value it at - which again brings me back to the original question --- why ask this question at all when insurance companies will give you whatever market value of the car is in the event of a claim0
-
Car_54 said:Will they give the market value if your declared value is lower?
Yes, I think so. I changed cars part way through a policy and the renewal documents came through with the car valued at £0. I queried this and on the web chat, the insurance co said it doesn't matter as its the current market value in the event of a claim. I have got a transcript of the conversation saved though0 -
When you apply for insurance an insurance policy you answer a series of personal questions. Sex - Age - Occupation - How long driving and convictions Etc. Etc. They then ask for details of the vehicle and any additions AND THE VALUE. From all this information they arrive at a figure. You pay your premium accordingly. At the end of the year (renewal) then there is a revaluation. If you are asked when making the insurance application for a valuation if you say £50k then you reasonably expect the premium to be based on that valuation not some mythical figure, say £10k the insurance company dream up when you make a claim. If the premium for year is say £1,000 you do not see it reduce each year with a right down value, invariably it goes up. I have seen vehicles written off by insurance companies for £500 that have been in excellent well maintained condition with many more years of motoring that have been hit by another vehicle when lawfully parked.
0 -
When I renewed my bike insurance I 'valued' my bike at 10K and told the person from the renewal team this when going through the proposed policy. They then told me the renewal price worked out cheaper if I left the value at the previous years cover which was 11K.
It was a mystery to me but quite acceptable and one of the more knowledgeable insurance people on here told me I 'may' have fallen into a lesser risk category based on an 11K value instead of a 10K one. There are lots of different factors taken into account when producing a cost for insurance but that was a new one for me.0 -
But the question really is why an insurer asks for YOUR valuation figure yet 24 hours later when the vehicle is written off/stolen or whatever reason the price they will pay you in settlement is so much lower than the valuation. You are insuring and paying a premium to ensure that you get the figure you valued it at. If I take my wifes engagement ring to be valued for insurance and they say £1,000 then I insure/pay a premium based on that figure. If it is stolen/lost etc the insurer does not offer me £500 they pay me the **insured value** why should your car be any different? The premium you pay is based on the valuation.
1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.7K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards