New Car: what is Car price for insurance

CoLSage

Hi Forum ppl,

Im buying a new car- cash (90%) & credit card(10%)

The list price of the vehicle on the 'Confirmation of registration' mentions a car price that is different from the quoted price.

I asked the salesperson, he said ''The price shown on the form will be the P11D price used if the car was a company car and is used to calculate the tax paid by an employee (does not affect you)''

Im an individual buying car for personal use not though company.

Please help me understand what he means by it.

Also what should be the car price that should be declared while getting insurance?
The quote mentions vehicle price + cost of special color+ ved+registration+delivery+ some accessories purchase

 

DullGreyGuy

It should be the total price you are paying excluding any interest being added for finance so in your case the cash + the amount being added to the credit card; it should include things like the optional extras of a special colour and accessories etc.

CliveOfIndia

In my experience it's quite rare for an insurance company to ask you to state the value - every time I've done it, you stick the reg. number in and it gives you a value.  This will be "market value" which will almost certainly be less than you paid for it, especially if it's a brand new car.  This where Gap insurance can be worthwhile - it'll make up the difference between the "market value" payout the insurance would give you and what you actually paid for it.

Even if you do get the chance to specify your own value, be aware that, should the worst happen, the insurance will usually only pay out "market value" anyway.

The only exception to this is where you go for an "agreed value" policy, which is fairly expensive and usually only applicable to classic or very rare cars.

CoLSage

Thank you @DullGreyGuy
Should the total car price include accessories like mats, boot liners etc , when i declare that for insurance?

Also do you know why dealership chose to show P11D price on Registration? Theres a difference of almost £1000 between this P11D price & actual price paid (minus taxes & additional accesories for the car)
Are they doing something questionable?

Would insurance companies (motor insurance & gap insurance) insist that we declare same price as confirmation of registration?

DullGreyGuy

things like mats and liners that are exclusively for use in the car should be included as they are covered by the insurance. Delivery charge and VED are the questionable ones.

I wouldnt get too hung up on it, most insurers ultimately map it to fairly wide buckets (a former insurer it was under £40k, over £40k and under £100k or over £100k) and so a few hundred (or even thousand) are unlikely to make much difference.

The P11D should be the list price as that, rather than the negotiated price, is what is used for calculating BIK as you pay your marginal rate on a percentage of that valuation. Without seeing the document I'd imagine they are trying to be helpful to company car drivers but as a consequence are confusing non-company car drivers. 

CoLSage

DullGreyGuy said:

things like mats and liners that are exclusively for use in the car should be included as they are covered by the insurance. Delivery charge and VED are the questionable ones.

I wouldnt get too hung up on it, most insurers ultimately map it to fairly wide buckets (a former insurer it was under £40k, over £40k and under £100k or over £100k) and so a few hundred (or even thousand) are unlikely to make much difference.

The P11D should be the list price as that, rather than the negotiated price, is what is used for calculating BIK as you pay your marginal rate on a percentage of that valuation. Without seeing the document I'd imagine they are trying to be helpful to company car drivers but as a consequence are confusing non-company car drivers. 

Thank you @Dul@DullGreyGuy for clarifying my confusion on insurance.

Now on P11D is almost £1000 less than the price they are charging me. Im confused why are they even mentioning it, if it is not applicable to me?

What is the significance & guidelines on specifying list price on Confirmation of Registration document?
Thanks 

Grumpy_chap

There is a risk of over-thinking this.

The P11D is a standard figure stated for taxation purposes.  It can be ignored by the OP as not applicable.

All the OP needs to declare is what the OP is paying for the car

Car_54

CoLSage said:

What is the significance & guidelines on specifying list price on Confirmation of Registration document?
Thanks 

The "P11D price" is simply the manufacturer's (or importer's) list price on the day of sale, including any factory- or dealer-fitted extras.

As well as its use for calculating benefit in kind for company cars, DVLA also need to know whether it is over £40,000 as this triggers a VED surcharge for the first 5(?) years.

CoLSage

CliveOfIndia said:

In my experience it's quite rare for an insurance company to ask you to state the value - every time I've done it, you stick the reg. number in and it gives you a value.  This will be "market value" which will almost certainly be less than you paid for it, especially if it's a brand new car.  This where Gap insurance can be worthwhile - it'll make up the difference between the "market value" payout the insurance would give you and what you actually paid for it.

Even if you do get the chance to specify your own value, be aware that, should the worst happen, the insurance will usually only pay out "market value" anyway.

The only exception to this is where you go for an "agreed value" policy, which is fairly expensive and usually only applicable to classic or very rare cars.

CliveOfIndia
While getting quotes, im being asked price, since its a new car they wont have registration details
Though im not fretting about list price & insurance now at all.

Im more worried about the list price, p11d explanation sales guy is giving and a difference of almost £1000 in the list price vs the invoice price

CoLSage

Grumpy_chap said:

There is a risk of over-thinking this.

The P11D is a standard figure stated for taxation purposes.  It can be ignored by the OP as not applicable.

All the OP needs to declare is what the OP is paying for the car

Where do i declare that? 
For motor insurance
For gap insurance
Anywhere else?

And what should be declared?

The quote mentions vehicle price + cost of special color+ ved+registration+delivery+ some accessories purchase+fuel

They discounted the price of vehicle by the amount of accessories +fuel; a massive discount of £100.

Car_54

CoLSage said:

Im more worried about the list price, p11d explanation sales guy is giving and a difference of almost £1000 in the list price vs the invoice price

The 'list price' is the recommended retail price: the law prevents the manufacturer from dictating what price the dealer actually charges.
In 'normal' times most people paid less than list, but we are not living in normal times.