996 Agreed value insurance?

996 Agreed value insurance?

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Discussion

Sbloxxy

Original Poster:

120 posts

228 months

Thursday 14th June 2018
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Just bought a 2003 996 C4 and I'm debating on whether I should arrange an agreed value insurance policy rather than a more conventional one. Its to be used as a second car but I'm conscious that values seem to be creeping up.
What's everyone else doing in this respect?

skinny

5,269 posts

236 months

Thursday 14th June 2018
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I would.
I got an indication of value from my insurance co today as I have an expensive body repair after a lorry hit me.

Their guide says £10k for my high mileage (113k) 996.

I paid just under that 3 years ago and prices have definitely gone up a couple grand, I definitely couldn't replace it with anything near a like for like for that money.

Edited by skinny on Friday 15th June 08:08

EGTE

996 posts

183 months

Friday 15th June 2018
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These guys seem to be more realistic, for sure.

https://cazana.com/uk

Fastlane

1,185 posts

218 months

Friday 15th June 2018
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My 2001 49k mile, Zanzibar Red, aerokitted 996.1 C4 is insured with A Plan for £25k agreed value. 3k miles/year, £260. Even at £25k I'd struggle to find a car as nice, and not in Zanzibar...so it's a no brainer.

mikey P 500

1,240 posts

188 months

Sunday 17th June 2018
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Never understand agreed value, the whole point in insurance is they would have to pay you market value to get another one like it. That's why you have fully comp, agreed value is just paying extra for something they do anyway.

Dammit

3,793 posts

209 months

Sunday 17th June 2018
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Market value is the average of recent hammer price's at auction for roughly the same model, doesn't account for the condition of the car or any upgrades you have fitted.

I'd likely get ~15k for my car, based on that, and I might need to be lucky.

That's nowhere near enough to buy the same car.

edc

9,252 posts

252 months

Sunday 17th June 2018
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If the market is going up then an agreed value could pay you less depending on where you legged the price. I have an agreed value in my car and it's about 35% more than I paid for it.

skinny

5,269 posts

236 months

Monday 18th June 2018
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mikey P 500 said:
Never understand agreed value, the whole point in insurance is they would have to pay you market value to get another one like it. That's why you have fully comp, agreed value is just paying extra for something they do anyway.
Yes, in theory. Have you ever had to find out the total loss value of your car from your insurance tho?

rabbitstew

142 posts

159 months

Monday 18th June 2018
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mikey P 500 said:
Never understand agreed value, the whole point in insurance is they would have to pay you market value to get another one like it. That's why you have fully comp, agreed value is just paying extra for something they do anyway.
Exactly this. Its not "auction price" or "trade price" its the price you would have to pay to replace like for like - either from a private seller or a main dealer. The whole idea is that you should not be in a worse position and should be put back in a car as similar as your one as possible. (i.e. same make/model/year/mileage/spec).

My family have had 2 instances in the past where cars have been unfortunately total loss write offs, both non fault. In both occasions the insurance company offered an initial "low ball" offer on the chance we might accept. We then looked on autotrader and sent the insurance companies actual adverts for the same make/model/spec/year/mileage car and on both occasions the insurance companies didnt question it and paid out the market value for both of the cars.

The only time I can see an agreed value being of use is if a particular car is worth drastically more than another identical car - maybe due to its history or previous owners or it has some modifications which would be expensive to recreate. Or if its a rare car in which case the owner may well struggle to find a replacement.


Dammit

3,793 posts

209 months

Monday 18th June 2018
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"Market value" would not be anywhere near enough to buy my car over again, however.

C4ME

1,195 posts

212 months

Monday 18th June 2018
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A recent conversation I had with an insurance broker over insuring a 993 brought up something I was not aware of and I am still not sure if their advice was right. I wanted to insure the car as market value not agreed value. They told me if I insured the car as market value they would only pay out up to the value I was declaring the car to be worth on the insurance form even if the market moved up in value as a whole. It was up to me to ensure the car was adequately insured if it became worth more by revising my insurance. The company in question run a specialist Porsche policy.

This seemed to defeat the whole purpose of market value as I would always be better off with agreed value.

chriscoates81

482 posts

133 months

Monday 18th June 2018
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C4ME said:
A recent conversation I had with an insurance broker over insuring a 993 brought up something I was not aware of and I am still not sure if their advice was right. I wanted to insure the car as market value not agreed value. They told me if I insured the car as market value they would only pay out up to the value I was declaring the car to be worth on the insurance form even if the market moved up in value as a whole. It was up to me to ensure the car was adequately insured if it became worth more by revising my insurance. The company in question run a specialist Porsche policy.

This seemed to defeat the whole purpose of market value as I would always be better off with agreed value.
Surely if that's the case, then everybody would get the value that they type in on the initial page of insurance quote.

C4ME

1,195 posts

212 months

Monday 18th June 2018
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The difference seemed to be that for agreed value you had to get a valuation and submit photos, etc and they agreed that value when taking out the policy, whereas for market value they took your declared value at face value as their max liability and then would argue the true worth at claim time (but still capped by your declared value).

mikey P 500

1,240 posts

188 months

Monday 18th June 2018
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skinny said:
Yes, in theory. Have you ever had to find out the total loss value of your car from your insurance tho?
Yes once about 12 yrs ago, fault claim on a Toyota MK4 supra, their first offer was £1k more than the car had cost me earlier the same year, but the company hinted if I found some adds of more expencive examples and summited them they could raise there offer (which i did and was allowed to cash first cheque in mean time) got another £1500 extra based on the cost of 4 adds that were higher still. I found them to be very fair. (Have also worked in insurance and people rarely argue about cost of car of you are realistic, it's the personal compensation that makes the cost of the cars seem very small. Also a guaranteed value still has to be independently assessed as you can't insure something for more than it's worth anyway.

Edited by mikey P 500 on Monday 18th June 18:27

jonny996

2,623 posts

218 months

Monday 18th June 2018
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Who gives you the valuation?

skinny

5,269 posts

236 months

Monday 18th June 2018
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Hmm. Mine told me they would only use glassers gus's which gave a monthly indication of what cars actually sold for so it wouldn't matter if I showed them adverts with higher priced cars for sale, they could not go above the top guide price which for my mileage was £10600 for my 113k mile 3.4. I said I wouldn't be able to pick up an equivalent for less than £12k with my options etc but they didn't appear to assign any value whatsoever to those

hyphen

26,262 posts

91 months

Monday 18th June 2018
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I'd be more worried about values going down.

See a fair few 996's and 911's in general in London, and ULEZ charges are coming.

edc

9,252 posts

252 months

Monday 18th June 2018
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skinny said:
Hmm. Mine told me they would only use glassers gus's which gave a monthly indication of what cars actually sold for so it wouldn't matter if I showed them adverts with higher priced cars for sale, they could not go above the top guide price which for my mileage was £10600 for my 113k mile 3.4. I said I wouldn't be able to pick up an equivalent for less than £12k with my options etc but they didn't appear to assign any value whatsoever to those
Sounds about right. When. I got paid for my first Boxster indent in copies of all service history and receipts, photos and a selection of top priced adverts which were as close to my spec and mileage. That got me a small bump to the top price of their CAP or Glasses guide. Market valuation doesn't care for whether you can actually buy one for that. When they say market valuation what is really meant is a trusted and reliable source for sale prices, not 'overpriced' for sale adverts.

rabbitstew

142 posts

159 months

Tuesday 19th June 2018
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chriscoates81 said:
Surely if that's the case, then everybody would get the value that they type in on the initial page of insurance quote.
I had an interesting conversation with one insurance company when I renewed my motorbike insurance last year. I only insure them third party only, so the insurance company will never have to ever pay out on them if they are crashed or stolen. But if I increased the "declared value" of the bikes by £500 my premium went up. The insurance person could not give me any justification or reason as to why their company did that.