I received my insurance renewal notice through the post.
I telephoned to accept and pay by credit card.
I was asked questions like "Do you still do 10,000 miles per year?" and so on.
But the thing that puzzled me is that I was asked how much my car was worth. They know what kind of car it is, and how old it is, so they will have a reasonable idea of its market value. They can hardly expect all their customers to the current market value of their cars. So why ask this question?
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>>They know what kind of car it is, and how old it is, so they will have a reasonable idea of its market value
If you gave a value to high or too low then it would be indicative of an issue -
perhaps loads of add-on bits
perhaps in naff condition
perhaps incorectly described
perhaps modified
etc. etc. etc.
Its a cross-check.
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But surely it's a bit pointless, since most customers probably haven't a clue about their vehicle's market value?
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If you guess a value, and its a lot less than market value. Then subsequently make a total loss claim. Do you think they will pay market value or the value you gave them?
They dont ask you if you want business use, yet invariably its free. Would they pay if you didnt tell them and had an accident on business?
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Despite the above comments, the real reason is more than likely that they want to know what you paid for the vehicle when you acquired it.
However, any payout would still be based on the cost of replacing a similar vehicle in similar condition at that particular time.
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What\'s for you won\'t pass you by
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I've only been asked this when I've first insured a car, and then it was obviously needed so that they could calculate the premium.
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L\'escargot.
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"They dont ask you if you want business use, yet invariably its free."
You have got to be kidding.
V
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>>most customers probably haven't a clue about their vehicle's market value?
They're looking for what you think its worth. If you've bought a shed or a heavily customised chav-mobile then you'll have quite differing perce[ptions of its value.
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They're looking for what you think its worth
FWIW - I looked at www.parkers.co.uk and their valuation of an R reg Colt looked about right.
--
e Prof
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So why ask this question?
You should have asked them why. Then you'd have got it straight from the horse's mouth.
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L\'escargot.
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That would be to logical,lets ask some people who might know and not ask the people who will know.
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I can see why the original poster is asking this.
If you ask for a quote YOU tell them what it's worth.
If you make a claim THEY tell you what it's worth.
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You should have asked them why. Then you'd have got it straight from the horse's mouth.
Good point! I don't think that fast though. And I wouldn't like to seem like an awkward customer.
It's also the possible that the young lady on the end of the phone wouldn't know the answer.
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I guess that the following posting points to why I am so puzzled - because it shows that many drivers have no idea at all of what their car is worth.
www.honestjohn.co.uk/forum/post/index.htm?v=e&t=45...8
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But the thing that puzzled me is that I was asked how much my car was worth. They know what kind of car it is, and how old it is, so they will have a reasonable idea of its market value.
I have accepted renewals before and it was only when I wanted to add my step son to the insurance that I discovered that an 'extra' premium had been added to the cost because I had not lowered the value of the car since its purchase. I saved over £100 that time and that included adding an under-25 provisional driver!
Check each year the distance you travel & value of the car and tell the insurers, they will gladly charge you more for a higher value but heaven help you if a total loss claim is made - you will get the lowest figure they can get away with!!
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Check each year the distance you travel & value of the car and tell the insurers
Thanks for the tip.
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L\'escargot.
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This is bizarre!
So...I tell the insurance company that I think that my Alfa is worth 1,500 quid as that is what I think I would have to spend at, say, a dealer to return me to the situation if the car were written off AND the insurance company adjusts my premium to take account of this 1,500 quid.
If, however, the Alfa were written off, then I bet that the insurance company would refer Parkers or Glasses and simply offer me, say, 500 quid. I know that its possible to buy some of these cars very cheaply, but with an unkown history!
Where would I stand? I would insist on the 1,500 quid as I paid the premium for it! Could the insurance company get away with paying me less?
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So...I tell the insurance company that I think that my Alfa is worth 1,500 quid ...............
If, however, the Alfa were written off, then I bet that the insurance company would refer Parkers or Glasses and simply offer me, say, 500 quid.
The figure of £1500 doesn't apply to eternity. From when you quoted the value and the car being in a total loss accident the value will have dropped anyway.
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L\'escargot.
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If you think your car really is worth £1500, despite Glass's guide etc saying otherwise, then you need Agreed Value insurance. This is standard practice in the world of classic car insurance, and usually involves a statement by the owner, submission of photographs, membership of an owners club to whom reference may be made by the insurer, and quite often a limited annual mileage. If in very exceptional condition, eg if it has been expensively restored, then the insurer may ask for a specific valuation.
The difficulty comes if your car is in a half-way situation. Cheap and fairly old, but not yet "classic". You may know that yours is in above average condition , and that you have put in a lot of work keeping it in good condition, but the insurance company will not be convinced.
Logically in those circumstances, without agreed value insurance, you might expect the premium to keep falling, reflecting the continuing depreciation of the car's book value. But I bet it doesn't.
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