Insurance on appreciating cars
Discussion
So, as the title says. I took out GAP when I got the V12V and have a reasonable comp policy but as time goes on, I see values rising and my protection becoming more and more ineffective. I don't need a crystal ball to know that the insurance company is unlikely to pay out the post increase market value without a fight.
So what do people do with a car that isn't old enough to be a classic and also protect themselves from the insurance company that will want to rigorously protect themselves from paying out?
So what do people do with a car that isn't old enough to be a classic and also protect themselves from the insurance company that will want to rigorously protect themselves from paying out?
Jockman said:
Not sure I understand. Insurance will pay out market value. If you're not happy with that you get evidence to fight your corner.
If you believe the market value of your car is appreciating then what is the need for GAP?
Oh I agree the GAP is now redundant. It took out GAP because the cars were not appreciating at the time.If you believe the market value of your car is appreciating then what is the need for GAP?
Relating to the normal road risks insurance, the guide price doesn't reflect the cost to replace the car in most cases. But in the case of DBS/V12V at the moment, the replacement cost is going up way faster than the guides.
I suppose your point is one where you could go to your dealer and other sources to provide evidence of the current replacement costs and fight your corner with no guarantee of success. I would certainly prefer to harden my position before hand with a policy that assures me of a favourable outcome.
My query, to which your answer is a valid one, is "is there an economically reasonable way to assure the right payout in the event of a total loss?"
bogie said:
You pay a small premium for agreed value, and usually need photos and a dealer valuation letter to prove. Then there is no messing about if you have a total loss. (speaking from experience, well worth having for a special car)
Thing is bogie me old China you would usually state the invoice price as the agreed valuation. Brent's dilemma is that even this may not be enough if his cars are rising in value.
Jockman said:
I would keep the GAP policy. Is it a return to invoice or replacement vehicle one?
Just had a quick peak at the current DBS prices and they are about £4K less than this time last year.
Return to invoice, so the V12V worth about £15k more than the policy right now!!Just had a quick peak at the current DBS prices and they are about £4K less than this time last year.
Edited by divetheworld on Sunday 27th March 14:17
It really isn't like the old days when "Glasses Guide" was the bible on valuation. With the wealth of information available to all insurers pretty much offer "current market value" immediately. Agreed value is all good and well until you total the car 364 days into the policy year only to find out values have increased by 10%. You could of course call your broker on a weekly basis with an update. 
divetheworld said:
Jockman said:
I would keep the GAP policy. Is it a return to invoice or replacement vehicle one?
Just had a quick peak at the current DBS prices and they are about £4K less than this time last year.
Return to invoice, so the V12V worth about £15k more than the policy right now!!Just had a quick peak at the current DBS prices and they are about £4K less than this time last year.
Edited by divetheworld on Sunday 27th March 14:17
Why do people bother with gap insurance?
You're effectively saying your current insurer/insurance isn't good enough. Why not just find a better principal insurer and forgo the hassle, extra tax etc etc etc? And as Bogie says, get it on agreed value and away you go.
Of course if things jump wildly through the year you'd need to adjust. But frankly on all modern, still available stuff I simply don't see that being a material problem no matter what sticker prices might say.
You're effectively saying your current insurer/insurance isn't good enough. Why not just find a better principal insurer and forgo the hassle, extra tax etc etc etc? And as Bogie says, get it on agreed value and away you go.
Of course if things jump wildly through the year you'd need to adjust. But frankly on all modern, still available stuff I simply don't see that being a material problem no matter what sticker prices might say.
Jockman said:
bogie said:
You pay a small premium for agreed value, and usually need photos and a dealer valuation letter to prove. Then there is no messing about if you have a total loss. (speaking from experience, well worth having for a special car)
Thing is bogie me old China you would usually state the invoice price as the agreed valuation. Brent's dilemma is that even this may not be enough if his cars are rising in value.
Murph7355 said:
Why do people bother with gap insurance?
You're effectively saying your current insurer/insurance isn't good enough. Why not just find a better principal insurer and forgo the hassle, extra tax etc etc etc? And as Bogie says, get it on agreed value and away you go.
Of course if things jump wildly through the year you'd need to adjust. But frankly on all modern, still available stuff I simply don't see that being a material problem no matter what sticker prices might say.
I used to think the same Andy. When I looked into GAP it was soooooo cheap for the peace of mind I thought it worthwhile. You're effectively saying your current insurer/insurance isn't good enough. Why not just find a better principal insurer and forgo the hassle, extra tax etc etc etc? And as Bogie says, get it on agreed value and away you go.
Of course if things jump wildly through the year you'd need to adjust. But frankly on all modern, still available stuff I simply don't see that being a material problem no matter what sticker prices might say.
When you look at it, 5 years guarantee on a £95k car costs 23p per day, far cheaper than agreed valuation. Plus the agreed valuation would not be £95k in year 5.
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