The value of my car on my insurance policy is £550, would I get this much if it was written off?

My car is a 2003 Renault Clio 1.2. I bought it new from the original owner in 2012 with 60,000 miles and full main dealer service history. It now has 110,000 miles, a new MoT and has been serviced yearly by a local garage. I just renewed the insurance too. However, the value of my car on the policy was stated as £150. Recently, my neighbour was paid £100 for a scrapper with no MoT. I queried this and was asked to provide adverts online showing how much a replacement would cost. The insurer has amended the value to £550, which was the lowest advert and lacks 12 months MoT and service history. I had to accept the policy as time had ran out on the old one. My question is how much would I get in the event of a write off? A replacement that is truly like-for-like from a dealer advert online is around £900.

Asked on 17 April 2018 by Andrew Hill

Answered by Tim Kelly
The value on the policy has no bearing whatsoever to the market value of the vehicle unless the policy is an agreed market value policy. Any advert you see is an asking price rather than a selling price, and isn't indicative of the true market value generally. The approximate value based the car being immaculate is £500-700. There are thousands of them out there for sale, and many with less miles for this figure.
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