The higher the value of the car the higher is the risk to the insurer.
What I meant was does the value I declare have any bearing?
Surely the insurance co.'s will know what the vehicle's market value is as soon as you tell them the registration number (or make/model/year) - so why bother asking?
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What I meant was does the value I declare have any bearing?
The insurer will set the premium at the start of the policy according to the value you have declared. It's up to you to declare what value you want insured, not for them to work it out. Obviously they will not pay out more than the market value or your declared value, whichever is the smaller. Seems logical to me.
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L\'escargot.
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seems logical to me as well
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I reckon they ask just because they always have...
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good point
like does it have an immobilisor?,er yes like all cars have since 1995 ishk
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In the recent past I have played around with eSures' on-line quote system. Some things make a different (e.g. changing from 4000mi PA to 10000mi PA increases the premium by about £40). Other things make no difference at all - didn't matter what security I selected, there was absolutely no change in premium.
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Mileage is a critical factor in assessing insurance premiums for obvious reasons.
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What\'s for you won\'t pass you by
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>>>The insurer will set the premium at the start of the policy according to the value you have declared<<<
My car is almost four years old. It is now worth quite a lot less than in first year. Should I therefore point out to Insurer that I only need cover for the current value or do they take that into account when deciding premium for the coming year? To be fair, their increases have been *very* small year-on-year.
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>> What I meant was does the value I declare have any bearing? The insurer will set the premium at the start of the policy according to the value you have declared. -- L\'escargot.
On at least one insurer's website I was told that the value I entered as the value of my car was for "accounting reasons" only and would NOT affect my premium in any way (I'm not sure, but think it was ecarinsurance). Of course, like others have said, they do need to know the approximate value of the car in calculating the premium -- but they can do that using the car's details and age.
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... So I am not sure why they ask for an estimation really. It's not necessary as they can already work out the approximate value, probably more accurately than what an average car owner's estimation of the value of their car would be.
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they do need to know the approximate value of the car in calculating the premium -- but they can do that using the car's details and age.
It's probably not part of their remit to do that.
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L\'escargot.
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The insurer will set the premium at the start of the policy according to the value you have declared.
If you go on an insurance site and put in some car details, and then change the value, you will find this is not really the case for most vehicles
I picked the first site that came up in Google, entered some details (Ford Monde 2l ghia, 06, £350 excess, comprehensive insurance, 10 month term)
Car value/Quote
up to £999/£638.75
£1000/£644.88
£1001-£2999/£651.87
£3000-£19,999/£658
£20,000-£24,999/£662.37
You might say that a year-old Mondeo has depreciated so much it wouldn't be worth more than £3k anyway (actually worth about £10k in good nick) ;-), but for a more valuable car, (Mercedes S600 L), it works out almost the same, except that £3k-£9999 costs the same, and £10k-£19,999 costs the same (and the difference is small).
When I insure my car I always declare a value a couple of thousand over its true value, because it doesn't cost me any more.
The premium is hardly correlated to the value at all - most of the premium is for third-party risk, profit/overheads, and accident repair, which are not affected by the car's value.
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Try doing the same test with increasing annual mileages...:-)
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What\'s for you won\'t pass you by
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I've just sorted out insurance with Frizzell and the only stipulation is the car is worth less than £100,000. This has been increased as it was £40,000.
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If you declare a fair and reasonable value for your 3 year old repmobile, they accept your proposal, quote you a premium on that basis and you pay it, why is there all this angst about paying out a fair value if the car is written off? If you have been sensible with your valuation surely there is some element of an agreed value created? Am I missing something here? "Yes, probably!"
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Just a note of caution regarding tweaking insurance quote requests.
As far as I know, they record all the iterations/alterations you might make for your quote request i.e annual mileage/car location/value / previous claims / personal situation etc etc.
An example would be knocking off business use from a second re-quote to make it cheaper. If by fluke, your boss asks you to nip out on an errand for any reason during a week day and you happen to have a bump then the insurance company WILL have knowledge that you MAY have been on company business. There are other situations like removing alloy wheels etc from a quote or normally parked on a driveway type instances.
If you later go on to make a claim, then they have a good idea if you've been trying to "manipulate" them into giving you the lowest quote.
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If you later go on to make a claim then they have a good idea if you've been trying to "manipulate" them into giving you the lowest quote.
*Assumes very skeptical look*
I bet they don't. Nothing like that would ever stand up in court.
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sorry davidh but this is simply another urban myth. No-one is going to fill up their servers with every on-line attempt at filling out a quotation form. In any case I don't ever recall entering my working hours on one of these forms - my employer operates 24/7 but my car insurer has no idea which of these hours I'm actually working. At 11am I might be taking a work related item to another site or I may be going to the dentist or I may taking an early lunch or I may be on my own time or...
As for alloy wheels if you don't declare them and they're stolen you simply will not be able to claim for them - if the whole car is stolen or written off their value will not be taken into account. Also my car is normally parked on my driveway but if I leave it in the street overnight because there's scaffolding up on my driveway while my roof line is being repaired it does not mean my insurance is null and void.
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>>... Also my car is normallyparked on my driveway but if I leave it in the street overnight because there's scaffolding up on my driveway while my roof line is being repaired it does not mean my insurance is null and void.
I had bike insurance, that said if I left my bike on the road overnight, it wouldn't be covered, it had to be in the garage, cos that is where I said it is kept at night when at home.
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Aim low, expect nothing & dont be disappointed
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Fill up servers? Sorry but you wouldnt be duplicating data - you'd be tracking the changes only.
I am totally anti-conspiracy theory and dont believe any old tripe. It just makes sense to me.
Then you just explain "I'm on my way to the dentist" if you're on your way to the dentist. I'm not implying they wont pay you out, its about the bigger picture.
Of course you'd be paid out if you had to temporarily park your car on the street - you had scaffolding in the way!! You are being legitimate. Its not necessarily about hammering people its about analysing data.
In the insurance game, knowledge is power. The more accurately you can profile your customers the greater the advantage you have over your competitors. Cheap quotes to low risk, pricey to high risk. We're talking millions of pounds here so the maximum accuracy you can get in a risk model then the more money you'll make in the payout vs revenue equation.
Could I suggest (not you personally) that if someone is prepared to lie/bend truth about a small thing they may not think twice about a bigger lie?
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"Obviously they will not pay out more than the market value or your declared value, whichever is the smaller. Seems logical to me."
Only if the premium is based upon it. If it isn't, then the declared value is pointless. As it is, you might as well abuse your car, because you won't get any more for it if you look after it.
If the premium depended on the declared value, you could choose whether to risk a low payout, or pay extra to ensure enough to replace a car that you value. I've often thought that insurance companies should replace like for like, and at least offer to do the shopping for you...
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