Insurance valuation

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Mon 12 Feb 2001 22:21
Insurance valuation - Malcolm
What happens in the event of a total loss claim when the car you are claiming for was bought at a knock-down price. I have just ordered a new honda civic aerodeck in a deal that was too good to refuse!,does the price i paid affect the settlement or is it always based on market value?.it realy was agood deal £14750 slashed to £10500 and yes i know it is now an old model
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Mon 12 Feb 2001 23:10
RE: Insurance valuation - jerryparker
Malcolm,

If the worst happens, stand your ground. I paid £2300 for a Alfa GT Jnr in Italy that I valued (and believed was worth) £6000. I had it written off by a white Mercedes sprinter in the UK and claimed for £6k and (after a fight) got it. The insurance company will ask for a value of the car when they insure it, but will use the price paid (e.g. from a receipt) to help them calculate the value when it is a total loss (they also take into account factors such as market value, mileage and condition).

If there is a dispute they will use an assessor and if necessary a claims adjuster who are (supposedly) experts to come to a 'fair' price!

You should not be penalised for being a canny consumer - insure it for what you think it is worth.
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