Insurance quandry

Author
Discussion

suigeneris

Original Poster:

62 posts

118 months

Saturday 26th November 2016
quotequote all
Really want a Scuderia. However, no "specialist" insurer (RKH, Locktons, Pace Ward, etc) will cover me currently due to a few claims in the last 3 years that arent quite far enough back yet, so I can only get high street insurance. I'll have to pay a much higher premium (which I accept), but the quandry is over the fact this wont have "agreed value" so worst case scenario, if I prang it and its not a write off I'd be tied to a non Ferrari approved repairer (Bob down the road with a body shop) and if its a write off wouldnt have an agreed value (although ironically this is less of a concern as these are edging up slightly in value so "market value" should be close to whatever I pay).

Quandry is, its a lot of money when its not on specialist agreed value insurance, so its gotten me looking at cars 1/2 the price like a good Gallardo Spyder, which I've had before and is a great car (certainly better than nothing for a year!!) and is within more of a comfort zone given this insurance, but its not nearly as special as a Scud. It may be false comfort given the value though and may even be safer with the Ferrari given values are increasing vs Gallardo's being flat.

Has anyone else found themselves in a similar position before? Should I not be concerned as (other than different levels of customer service and fact I'm paying a much higher premium for a year) insurance is insurance..?

FalconWood

1,359 posts

197 months

Monday 28th November 2016
quotequote all
suigeneris said:
Really want a Scuderia. However, no "specialist" insurer (RKH, Locktons, Pace Ward, etc) will cover me currently due to a few claims in the last 3 years that arent quite far enough back yet, so I can only get high street insurance. I'll have to pay a much higher premium (which I accept), but the quandry is over the fact this wont have "agreed value" so worst case scenario, if I prang it and its not a write off I'd be tied to a non Ferrari approved repairer (Bob down the road with a body shop) and if its a write off wouldnt have an agreed value (although ironically this is less of a concern as these are edging up slightly in value so "market value" should be close to whatever I pay).

Quandry is, its a lot of money when its not on specialist agreed value insurance, so its gotten me looking at cars 1/2 the price like a good Gallardo Spyder, which I've had before and is a great car (certainly better than nothing for a year!!) and is within more of a comfort zone given this insurance, but its not nearly as special as a Scud. It may be false comfort given the value though and may even be safer with the Ferrari given values are increasing vs Gallardo's being flat.

Has anyone else found themselves in a similar position before? Should I not be concerned as (other than different levels of customer service and fact I'm paying a much higher premium for a year) insurance is insurance..?
Seems odd thinking about scenarios that might arise if you prang it or write it off!!! Surely you don't intend to do either so just get it bought and he sensible/careful how you drive!!

sone

4,587 posts

238 months

Monday 28th November 2016
quotequote all
I found the specialist insurers to be a lot more expensive than the high street insurer which is a little strange as I believe some use the same underwriters.
Is there not a gap insurance offer available to give some reassurance?

DarrenKMC

202 posts

102 months

Tuesday 29th November 2016
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Yes I'd be wary of basing potential worst-case scenario's on each cars future value! I agree the Scud is certainly the stronger investment long term but impossible to guess what's going to happen in the shorter term.
Again I don't believe cars like the Scud will drop off but you never know, if you can afford to do it then go for it and be as sensible as you can! wink

On the worst-case scenario front, your insurer cannot force you to have the car repaired at their 'approved' shop, you have the legal right to have it repaired anywhere you choose so an approved Ferrari shop would be fine.
They may attempt bully you into using their own choice by withholding courtesy cars or some policy extra's or putting different inspection/authorisation & payment terms to your chosen shop just to make it potentially a longer, more stressful process and of course that's the last thing most people want.

bordseye

1,982 posts

192 months

Monday 5th December 2016
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DarrenKMC said:
On the worst-case scenario front, your insurer cannot force you to have the car repaired at their 'approved' shop, you have the legal right to have it repaired anywhere you choose so an approved Ferrari shop would be fine.
Thats simply wrong.The relationship between you and your insurer is governed by your terms of contract and if they say you must use the insurers repairer, then thats what you have to do. Most will let you use whoever you want provided that you pay the difference if any between their insurer and the one you have chosen.

If the damage is someone elses fault and its his insurance paying, then thats a different matter though even then you have a legal obligation to keep the costs reasonable. You cannot simply go to town because someone else is paying

mike01606

531 posts

149 months

Monday 5th December 2016
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bordseye said:
Thats simply wrong.The relationship between you and your insurer is governed by your terms of contract and if they say you must use the insurers repairer, then thats what you have to do. Most will let you use whoever you want provided that you pay the difference if any between their insurer and the one you have chosen.

If the damage is someone elses fault and its his insurance paying, then thats a different matter though even then you have a legal obligation to keep the costs reasonable. You cannot simply go to town because someone else is paying
Someone in the industry needs to input to this......

I've had three claims over the years inc one at fault where I've gone against the insurance companies scheme and used my choice of repairer.
They have pushed back and made sure I've done some legwork but still let me proceed. I'm pretty sure they cannot force you to use their (usually owned) repairer but you are right it may be in the T&C's now....otherwise why would they tolerate it?.
Ideally they want to mange your claim for you with an AM company they own or have a partnership with. They seem to do a good job of bumping up the costs themselves without you needing to. They appear now to make money on both ends.....

ZOLLAR

19,908 posts

173 months

Tuesday 6th December 2016
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mike01606 said:
bordseye said:
Thats simply wrong.The relationship between you and your insurer is governed by your terms of contract and if they say you must use the insurers repairer, then thats what you have to do. Most will let you use whoever you want provided that you pay the difference if any between their insurer and the one you have chosen.

If the damage is someone elses fault and its his insurance paying, then thats a different matter though even then you have a legal obligation to keep the costs reasonable. You cannot simply go to town because someone else is paying
Someone in the industry needs to input to this......

I've had three claims over the years inc one at fault where I've gone against the insurance companies scheme and used my choice of repairer.
They have pushed back and made sure I've done some legwork but still let me proceed. I'm pretty sure they cannot force you to use their (usually owned) repairer but you are right it may be in the T&C's now....otherwise why would they tolerate it?.
Ideally they want to mange your claim for you with an AM company they own or have a partnership with. They seem to do a good job of bumping up the costs themselves without you needing to. They appear now to make money on both ends.....
You're both a bit right, an insurer can't force you to use one of their approved repairers however you can't force them to pay for repair costs that are unreasonable.
If your chosen repairer is quoting unreasonable costs then the insurer will simply pay you a sum of money that is reasonable and you would need to seek your own repairs.


As Ferrari's, Lamborghini's, McLaren's etc become more mainstream and affordable insurers have added authorised manufacturer repairers to their list, so if you do have an accident ask them to check first if they have one on their books.
It maybe some distance away but the insurer would likely prefer to pay for transport costs over a non approved repairers quotes.

DarrenKMC

202 posts

102 months

Friday 16th December 2016
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bordseye said:
DarrenKMC said:
On the worst-case scenario front, your insurer cannot force you to have the car repaired at their 'approved' shop, you have the legal right to have it repaired anywhere you choose so an approved Ferrari shop would be fine.
Thats simply wrong.The relationship between you and your insurer is governed by your terms of contract and if they say you must use the insurers repairer, then thats what you have to do. Most will let you use whoever you want provided that you pay the difference if any between their insurer and the one you have chosen.

If the damage is someone elses fault and its his insurance paying, then thats a different matter though even then you have a legal obligation to keep the costs reasonable. You cannot simply go to town because someone else is paying
Only just seen this so sorry to add now... But it isn't wrong and I speak from 20yrs of working for & with niche brands before independently. I started my working life in a Ferrari approved bodyshop in the 90's and have closely been involved in this area of the industry ever since.
I didn't say it was always easy or straightforward, indeed insurers will often make it the opposite, but you do have a legal right to choose. As mentioned the costs need to be fair and the method of estimating in keeping with industry standards but I've not yet come across a case where the insurer reverted to a cash settlement rather than negotiate a repair.

toastybase

2,225 posts

208 months

Thursday 22nd December 2016
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I was talking to a chap the other day who was in a similar situation

Pothole

34,367 posts

282 months

Wednesday 28th December 2016
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I've never spoken to anyone in this situation.