Insurance question - valuation?

[AMG Merc]

Am about to renew for another year - as the car was new last time the replacement value was £56k but now secondhand equivalents can be found for £45K-ish so am not sure what to value it at.

My thoughts are to insure for say, £50K (to cover the options) - my point is that, in a total loss situation, the insurers won't provide old-for-new on a 1-year old car so why over-insure it?

Comments?

[ThatPhilBrettGuy]

I'd go for 45K which is what you'd get should the worst happen. I've a feeling the number doesn't really matter and it's just a quote/no quote test, i.e. You say it's worth 50K+ and they don't even give you a figure, under 50K and they're happy.

[AMG Merc]

ThatPhilBrettGuy said:

I'd go for 45K which is what you'd get should the worst happen. I've a feeling the number doesn't really matter and it's just a quote/no quote test, i.e. You say it's worth 50K+ and they don't even give you a figure, under 50K and they're happy.

Thanks Phil, I agree but I think that the premium goes up the more the quoted value is (at least with mine as am on a classic car policy) so I want to be specific.

[DanH]

The premium may go up, but the payout is unlikely to. If you can get similar cars for 45k advertised now, by the time you knock em down a bit, it will be less anyway. 45k seems reasonable to me as a stated value.

[AMG Merc]

DanH said:

The premium may go up, but the payout is unlikely to. If you can get similar cars for 45k advertised now, by the time you knock em down a bit, it will be less anyway. 45k seems reasonable to me as a stated value.

Thanks Dan, I tend to agree, in fact I did have a valuation figure of £45K in mind too (noted 2 3Rs on here for around that price and they have the track sump and 6-speed)!

[joust]

Remember your valuation should be "what would an equivalent car be valued at at a main dealer".

Private sale prices are totally irrelevant when it comes to insurance, despite insurance companies trying to state to every claimant that they are.

There is stacks of IOB/FOB case history on it - have a wander around dealers websites, find an equivalant car, make adjustments +/- for anything different, and quote that.

Finally, the value quoted cannot be held against you should a claim arise unless 1) you massivly underquote, or 2) you go for an "agreed value" policy. Again there is stacks of IOB/FOB case history on that.

J