Insurance question
Discussion
Is this a question of agreed value?
Agreed value IMO is a bit of a fallacy. Because your vehicle is paid out on a market value basis in the event of a total loss claim, if the value of your vehicle is rising, then don't get agreed value. This only locks in a lower value. A lot of brokers also charge you extra for the privalige.
The only time AV is worth it is when the market value of your car is falling.
Agreed value IMO is a bit of a fallacy. Because your vehicle is paid out on a market value basis in the event of a total loss claim, if the value of your vehicle is rising, then don't get agreed value. This only locks in a lower value. A lot of brokers also charge you extra for the privalige.
The only time AV is worth it is when the market value of your car is falling.
warp9 said:
Is this a question of agreed value?
Agreed value IMO is a bit of a fallacy. Because your vehicle is paid out on a market value basis in the event of a total loss claim, if the value of your vehicle is rising, then don't get agreed value. This only locks in a lower value. A lot of brokers also charge you extra for the privalige.
The only time AV is worth it is when the market value of your car is falling.
Depends what policy you choose, if you choose cheap cover expect the bare minimum.Agreed value IMO is a bit of a fallacy. Because your vehicle is paid out on a market value basis in the event of a total loss claim, if the value of your vehicle is rising, then don't get agreed value. This only locks in a lower value. A lot of brokers also charge you extra for the privalige.
The only time AV is worth it is when the market value of your car is falling.
I think, for example (it has been a long time since I used them) but Chubb had a 50% uplift for this agreed value. A friend had a policy with an underinsured E-type, wrote it off and got the 50% uplift to the value he claimed.
warp9 said:
Because your vehicle is paid out on a market value basis in the event of a total loss claim, if the value of your vehicle is rising, then don't get agreed value. This only locks in a lower value.... The only time AV is worth it is when the market value of your car is falling.
You can change the agreed value each year on renewal.I hate the phrase 'market value'. You ask the insurers what they will pay out if the car is written off and they say 'market value'. I ask them if that means trade, private or retail value - all very different of course. 'Market value' they repeat. 'What does that actually mean?' I ask. 'It means we pay market value' DOH!
All I ask re value is that if the car is written off they'll pay out enough for me to buy another of the same year and spec. And that means retail value - what it would cost to buy from a forecourt.
98elise said:
As above, I can't see how they can value your car without seeing it.
It's up to make sure you've got the right level of cover. You will know your car better then they do.
I believe there are a few specialist brokers/insurers that will accept a customers valuation without seeing the vehicle. There will be some criteria that will need to be met, e.g. no more than £25K and is what the customer saying the vehicle condition is in line with current market values. It is more common for the broker to request at least 6 photo's of the vehicle to prove it's condition before an AV is given. It's up to make sure you've got the right level of cover. You will know your car better then they do.
As has been pointed out, a rare vehicle, one with pedigree, is unusual or a high value restoration is worth getting agreed value, which the insurer may require an independent valuation and/or proof of provenance.
It is still down to the individual to take responsibility in this matter and adjusting it annually as they see fit.
Insurance is a funny thing.
They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
If you go agreed value, you pay the premium based on that value, and then that's what you get back.
Seems way more sensible. Having said that I currently don't have any cars on AV, Covid sort of messed with getting a valuation.
They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
If you go agreed value, you pay the premium based on that value, and then that's what you get back.
Seems way more sensible. Having said that I currently don't have any cars on AV, Covid sort of messed with getting a valuation.
As above, its your responsibility
I had agreed value policy on a heavily modified Elise. Market value for age/mileage was about £8k, I had it insured for £25k and provided photos/valuation from a specialist. A few years later I wrote it off and the insurer paid out £24500 within a few weeks (excess deducted) Agreed value can save a lot of hassle if you do have a non standard car.
I had agreed value policy on a heavily modified Elise. Market value for age/mileage was about £8k, I had it insured for £25k and provided photos/valuation from a specialist. A few years later I wrote it off and the insurer paid out £24500 within a few weeks (excess deducted) Agreed value can save a lot of hassle if you do have a non standard car.
supersport said:
Insurance is a funny thing.
They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
No they don't charge you a premium based on that valuation. On a normal market value policy, the value forms little or no part of the premium calculation. The only reason they ask you at all it in case you put down something stupidly high or low, which might then ring alarm bells about undisclosed mods, cat N or something else that might give rise to a daft valuation. They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
TwigtheWonderkid said:
supersport said:
Insurance is a funny thing.
They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
No they don't charge you a premium based on that valuation. On a normal market value policy, the value forms little or no part of the premium calculation. The only reason they ask you at all it in case you put down something stupidly high or low, which might then ring alarm bells about undisclosed mods, cat N or something else that might give rise to a daft valuation. They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
For one of my policies, to go from market value to agreed value I simply have to provide a recognised valuation letter. Previously, I filled in a form added some photos and paid £15.
So in an agreed value policy, does the value not have an effect on the premium? It must to a certain degree, as the value of my 911 went up, so did the premiums.
This year I don't have an agreed value, due to the previous valuation expiring. The premium didn't change.
supersport said:
TwigtheWonderkid said:
supersport said:
Insurance is a funny thing.
They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
No they don't charge you a premium based on that valuation. On a normal market value policy, the value forms little or no part of the premium calculation. The only reason they ask you at all it in case you put down something stupidly high or low, which might then ring alarm bells about undisclosed mods, cat N or something else that might give rise to a daft valuation. They ask you what it's worth, your valuation, and charge you a premium based on that valuation. But if it gets totalled they give you back what they think it's worth, not the cover you paid for.
For one of my policies, to go from market value to agreed value I simply have to provide a recognised valuation letter. Previously, I filled in a form added some photos and paid £15.
So in an agreed value policy, does the value not have an effect on the premium? It must to a certain degree, as the value of my 911 went up, so did the premiums.
This year I don't have an agreed value, due to the previous valuation expiring. The premium didn't change.
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