Opinion sought on valuation for insurance renewal

Opinion sought on valuation for insurance renewal

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Discussion

PH5121

Original Poster:

1,963 posts

212 months

Tuesday 1st September 2015
quotequote all
Every year on my insurance renewal the broker asks the value of my 911.

For many years I put down £25k, then last year I increased it to £30k. My 993 insurance renewal is due in a few weeks, and I don't know what realistically to put, has the market continued to inflate the values in the last year?
My car is a 1995 Carrera 4 (1996 model) with varioram, hollow spoke 18 inch wheels, it has working A/C and hard back seats. It has done 62000 or 63000 miles. It is guards red with marble grey leather / black interior.

It is clean and tidy with no rust, but could do with a front pu repaint due to stone chips to make it A1.

What is a realistic value? The Porsche Owners Club offer a valuation service, but I believe that the turn around time is months rather than weeks.

FalconWood

1,356 posts

196 months

Tuesday 1st September 2015
quotequote all
Get into the buy section and find a similar car and mileage etc then use that asking price. It may be a little high but will be close enough for insurance purposes I suspect.

supersport

4,040 posts

226 months

Wednesday 2nd September 2015
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Paul, try John Glynn he gives good valuations and has a decent turn around. The Club valuations take ages and are way out.

You could also just get Strasse to give you a valuation, many companies accept an Indies valuation.

g7jhp

6,959 posts

237 months

Wednesday 2nd September 2015
quotequote all
There's a fair spread of 993 Coupe on PH but I'd say circa £45k at present asking prices.

A 66k mile 1995 993 C4 at Graypaul for £50k

You could always go with that and update with an official valuation. Fair chance most insurers will ask you to give example at the time of any claim based on current market anyway (unless you get an agreed value).

Koln-RS

3,849 posts

211 months

Wednesday 2nd September 2015
quotequote all
The correct insurance valuation would be the cost to replace 'like for like'. And, you'd need to get that in writing from a reasonable authority.

If your 993 is also a Coupe, with full history, then it is a very sought after specification and, with that mileage, you would probably be looking at around £50k(ish) to find a similar example from a good source.



Dicky Knee

1,026 posts

130 months

Wednesday 2nd September 2015
quotequote all
My car was written off 18 months ago and in dealing with the insurer I was told that the value amount you state on the paperwork does not imply that you will get paid out that amount (I assume it is different with an 'agreed value' policy). They determined the payout amount based on 3 valuation services (like Parkers or Glass I assume). I think they started with an offer of £27000 against my insured 'value of £33000 and we ended up at £29500 which would have more or less bought me a replacement. I could have appealed firstly to the insurers MD and then on to the Insurance Ombudsman but it just wasn't worth the hassle. While we were haggling they did ask me to provide evidence that I couldn't replace the car for the amount they were offering and I used comparisons from Auto Trader and Pistonheads. Then we got into the argument about asking price vs actual price. So a formal valuation may help but its not guarantee. Maybe an agreed value policy is the way to go.

coccodrillo

35 posts

105 months

Wednesday 2nd September 2015
quotequote all
Dicky Knee said:
Maybe an agreed value policy is the way to go.
Does anyone know how an agreed value policy works in a rising market?

Is the 'agreed value' fixed firm for that policy year or is it a minimum value? Say you fix the value at £50k but values have risen by 10% when you need to claim - your replacement cost is now £55k, but will the insurer only pay out the agreed amount of £50k?

EJH

932 posts

208 months

Wednesday 2nd September 2015
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coccodrillo said:
Does anyone know how an agreed value policy works in a rising market?

Is the 'agreed value' fixed firm for that policy year or is it a minimum value? Say you fix the value at £50k but values have risen by 10% when you need to claim - your replacement cost is now £55k, but will the insurer only pay out the agreed amount of £50k?
It's firm for the year; in the current market it's quite important to update each year as (whilst I bought my car, some time ago, to use) values are changing each year.

uktrailmonster

4,827 posts

199 months

Wednesday 2nd September 2015
quotequote all
coccodrillo said:
Does anyone know how an agreed value policy works in a rising market?

Is the 'agreed value' fixed firm for that policy year or is it a minimum value? Say you fix the value at £50k but values have risen by 10% when you need to claim - your replacement cost is now £55k, but will the insurer only pay out the agreed amount of £50k?
That's a good question. I presume because it's an "agreed" value, that it's fixed until you agree a revised value. What I would do if prices were obviously going up significantly is call the insurer and ask for the agreed value to be revised. I'd expect to have to provide a legitimate valuation to prove my case and almost certainly have to pay a premium on the policy for the revised value. I can't imagine being able to claim for more than what the "agreed" value was on the policy.

Agreed value is definitely the way to go on a classic Porsche though, you will almost certainly get less back on a market valuation basis.

Edited by uktrailmonster on Wednesday 2nd September 13:28

mollytherocker

14,365 posts

208 months

Wednesday 2nd September 2015
quotequote all
EJH said:
It's firm for the year; in the current market it's quite important to update each year as (whilst I bought my car, some time ago, to use) values are changing each year.
I upped mine mid year with Classicline. They took some more money off me of course!

A friend of mine has upped his 3.2 at least twice in the last year!

At the end of the day, you pay the premium for the agreed value against the risk. Insurance cos are happy to up the values if they get more money of you!

chriscoates81

482 posts

131 months

Wednesday 2nd September 2015
quotequote all
I'm assuming with agreed value, that if the market plummeted then the company would give back some of your premium as it's worth less.

mollytherocker

14,365 posts

208 months

Wednesday 2nd September 2015
quotequote all
chriscoates81 said:
I'm assuming with agreed value, that if the market plummeted then the company would give back some of your premium as it's worth less.
How is it worth less? You have an agreed value.

danielw

210 posts

247 months

Wednesday 2nd September 2015
quotequote all
mollytherocker said:
How is it worth less? You have an agreed value.
My 996 is on an agreed value policy and my insurer contacted me during the year to ask if i'd accept a lower agreed value in which case they would refund me a small part of my premium...

mollytherocker

14,365 posts

208 months

Wednesday 2nd September 2015
quotequote all
danielw said:
mollytherocker said:
How is it worth less? You have an agreed value.
My 996 is on an agreed value policy and my insurer contacted me during the year to ask if i'd accept a lower agreed value in which case they would refund me a small part of my premium...
Yes, and in that case you are agreeing a new value. Nothing wrong with that.

FalconWood

1,356 posts

196 months

Wednesday 2nd September 2015
quotequote all
coccodrillo said:
Dicky Knee said:
Maybe an agreed value policy is the way to go.
Does anyone know how an agreed value policy works in a rising market?

Is the 'agreed value' fixed firm for that policy year or is it a minimum value? Say you fix the value at £50k but values have risen by 10% when you need to claim - your replacement cost is now £55k, but will the insurer only pay out the agreed amount of £50k?
I have Agreed Value on my cars as follows. Every December a formal valuation from a dealer or independent ( in my case a letter from a nearby independent who knows the market for my sort of cars and he writes to that effect) then every three months I look at closest cars to mine on the market and then discount them by 15%, advise my insurer in writing and then my insurer accepts this as the new AV and changes my policy, adjusts the premium and all done. Easy.

FalconWood

1,356 posts

196 months

Wednesday 2nd September 2015
quotequote all
EJH said:
coccodrillo said:
Does anyone know how an agreed value policy works in a rising market?

Is the 'agreed value' fixed firm for that policy year or is it a minimum value? Say you fix the value at £50k but values have risen by 10% when you need to claim - your replacement cost is now £55k, but will the insurer only pay out the agreed amount of £50k?
It's firm for the year; in the current market it's quite important to update each year as (whilst I bought my car, some time ago, to use) values are changing each year.
Not the case with my insurer, changes every three months.

harrykul

2,770 posts

225 months

Thursday 3rd September 2015
quotequote all
Had my 95 C4 valued by John Glynn a couple of weeks ago. Good service, quick turnaround, and would happily recommend. The jump in value on what I had it covered for last year meant I had to pay another £130 or so.

EJH

932 posts

208 months

Thursday 3rd September 2015
quotequote all
mollytherocker said:
I upped mine mid year with Classicline. They took some more money off me of course!
A friend of mine has upped his 3.2 at least twice in the last year!
At the end of the day, you pay the premium for the agreed value against the risk. Insurance cos are happy to up the values if they get more money of you!
I didn't know this was possible. I'm also with CL and was wondering if you could advise, broadly, as to what % of your premium they charged / admin charge to revise the AG?

I know it's a lowly 3.2 Cabrio I have but I rather like it, know where it has been for the last 9 and a bit years (and have paid the bills to prove it)...and it only had one owner before that. If the worst happened, I suspect it could be difficult to replace (hence my love of AG).


FalconWood said:
Not the case with my insurer, changes every three months.
As above, I didn't know this could be done; my apologies!

jackliebling

504 posts

172 months

Thursday 3rd September 2015
quotequote all
why not buy some kind of GAP policy?


mollytherocker

14,365 posts

208 months

Thursday 3rd September 2015
quotequote all
EJH said:
mollytherocker said:
I upped mine mid year with Classicline. They took some more money off me of course!
A friend of mine has upped his 3.2 at least twice in the last year!
At the end of the day, you pay the premium for the agreed value against the risk. Insurance cos are happy to up the values if they get more money of you!
I didn't know this was possible. I'm also with CL and was wondering if you could advise, broadly, as to what % of your premium they charged / admin charge to revise the AG?

I know it's a lowly 3.2 Cabrio I have but I rather like it, know where it has been for the last 9 and a bit years (and have paid the bills to prove it)...and it only had one owner before that. If the worst happened, I suspect it could be difficult to replace (hence my love of AG).


FalconWood said:
Not the case with my insurer, changes every three months.
As above, I didn't know this could be done; my apologies!
It wasn't much, about £50 I think?