Insurance value?
Discussion
The insurance is due on my 90 V8, and I'm concerned that it's not valued high enough on the current policy seeing how things have gone price-wise. This is NOT a for sale thread (I'll never sell it!) and it's not a "Defender price hysteria" thread, but I genuinely would appreciate a steer. I've looked on eBay and AT and there are very few V8s for sale.
It's a 1985 90 (rather than Defender) V8 manual. It's solid, it passes the MOT every year with little or no advisories, it's reliable and it's used almost every day. It's a proper basic Landie, not a pimped up princess
The only mods are wheels & tyres apart from things like a dog guard etc
The cheapest V8 on eBay is £2900 and it has not MOT and needs welding. From there on, there's another non-MOTd one for £3300, then we're up to £5950 for a reasonable-looking one (two years older than mine but I think that's irrelevant on these).
I'd take a stab that that puts mine into the £4-5k bracket? I know the insurers will only ever payout "market value" but it would be tough to put a value on it really. If it went I'd want another one; that's the crux I guess, I'd need enough to replace it.
What say the wise PHers?
It's a 1985 90 (rather than Defender) V8 manual. It's solid, it passes the MOT every year with little or no advisories, it's reliable and it's used almost every day. It's a proper basic Landie, not a pimped up princess
The only mods are wheels & tyres apart from things like a dog guard etcThe cheapest V8 on eBay is £2900 and it has not MOT and needs welding. From there on, there's another non-MOTd one for £3300, then we're up to £5950 for a reasonable-looking one (two years older than mine but I think that's irrelevant on these).
I'd take a stab that that puts mine into the £4-5k bracket? I know the insurers will only ever payout "market value" but it would be tough to put a value on it really. If it went I'd want another one; that's the crux I guess, I'd need enough to replace it.
What say the wise PHers?
The insurer will only pay out what they think is the value at the time of a claim, not what you think is the value for insurance purposes, and that's why the premium has not increased. If you really feel it's worth £6000 and you'd want that paid if written off then you need an insurance policy with an agreed value at the time of the claim. Expect a higher premium for this.
R.
R.
The Leaper said:
The insurer will only pay out what they think is the value at the time of a claim, not what you think is the value for insurance purposes, and that's why the premium has not increased. If you really feel it's worth £6000 and you'd want that paid if written off then you need an insurance policy with an agreed value at the time of the claim. Expect a higher premium for this.
R.
Absolutely, and we had that conversation on the phone; an agreed value policy is available should I want it. However, conversely, if I only insure it for £3000 and the market value, or cost to replace, is £5000, they're not going to throw the extra £2k my way out of goodwill!R.
CAPP0 said:
Absolutely, and we had that conversation on the phone; an agreed value policy is available should I want it. However, conversely, if I only insure it for £3000 and the market value, or cost to replace, is £5000, they're not going to throw the extra £2k my way out of goodwill!
The problem when it comes to a non-agreed value policy comes when everybody BUT the insurer thinks it's worth £5k, but the insurer say it's not in the price guides, so it's only worth £500... ESPECIALLY on something like a Defender, where there's every chance it's going to go walkies so you can't prove the condition.Get it on an AV! It's not going to add much, if anything, to the premium. If it does, take your business elsewhere.
The financial ombudsman site makes for interesting reading on this subject... Basically, it doesn't matter what price you suggest, the insurance company is obliged to pay out the market value. e.g. If it's valued at £7k but you only gave it a value of £1k, the insurance company will still be obliged to pay out £7k.
There was a case study about this on their website a little while back but I can't find it at the moment. However, there is a little paragraph about it here:
http://www.financial-ombudsman.org.uk/publications...
HTH
M
There was a case study about this on their website a little while back but I can't find it at the moment. However, there is a little paragraph about it here:
http://www.financial-ombudsman.org.uk/publications...
HTH
M
That's the insurer's market valuation at the time of the claim, not what the owner thinks it's worth at that time.
I would be surprised if the insurer pays out more that the owner said what he/she thought the vehicle was worth at the time of fixing the insurance: obvious scope for misrepresentation by the owner otherwise which would likely mean no claim agreed.
R.
I would be surprised if the insurer pays out more that the owner said what he/she thought the vehicle was worth at the time of fixing the insurance: obvious scope for misrepresentation by the owner otherwise which would likely mean no claim agreed.
R.
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