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I've just received my car insurance reminder and I've spotted that the car's insured value (£10,000) is the same as when I bought the car 5 years ago. I imagine that the market value is probably only about £2500. Would I be likely to get a (significant) reduction in the premium if I could get my insurer to revise the insured value?
Edited by L'escargot on 11/07/2009 at 08:55
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Short answer is yes it would help to reduce your premium if you get them to reset the car value. By far the biggest saving though would be achieved by searching around for better quotes and if you prefer, asking your current insurer if they would care to match what you find. I found the Meerkat useful for this very purpose for what it's worth.
I am seen as a high risk because of the nature of my work and the high mileage I do. This despite a clean licence and full ncb. I saved 25% this time with a bit of negotiation.
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Thanks Humph. When it comes to insurance I value quality over price so I will stay with my current insurer ~ Co-operative Insurance. Also I suspect that because of my advancing years some insurers might not take me on as a new customer.
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Insured value is a bit of a red herring really !! It probably states £10.000 as this was the valuation figure you put on it when you insured your car !!
If you had a total write off you would just get the market value for your car at the time of write off whatever it said was the insured value
Classic car insurance is were you are able to state a value on it !!
Possibly if you are a low mileage driver you may be able to get your premium reduced by checking what mileage the co-operative have got you down for .
Also you are quite right about your age (not knowing what it is ) insurance companies are less likely to quote you if you are getting older and to be honest the Co-op are a good insurance company !!
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They will only pay out what they think it is worth. My car is insured for less than £10k for example. They would then send me a cheque for £700. I then spend all week writing nasty but friendly letters till they give me £1k which is what I think its worth. They tried to give us £1k for my dads Punto in 2002 (it was a 96 N) but it had FSH, lots and lots receipts, full service history and it was the SX model with all the toys. We argued that ours had much better service history and a much higher spec than the ones they were showing us at £1k. They then wrote back to us blamed it on a staff member which normaly deals with valuations being on holiday and give us £1500 which we felt had reflected the service history nicely.
Seven years later they now have two people in the same house hold insured with them so buy not refusing our request for more money they have gained a lot more in the long run.
What I like about my insurance company is they only charge me £50 more a year for business use where as some insurance co's wanted more than £1000 extra for this!
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They will only pay out what they think it is worth.
I know that. My question is "would my premium be be likely to be reduced if I got my insurer to lower the insured value to something nearer the market value?"
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Sorry it would remain the same !!
If say your mileage per annum is say 8000 and they have you down as 12000 that would reduce your premium
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I don't think it makes any difference. I have also read if you put the value as say £200 it can actually increase your premiums as the insurance company assume its a banger with lots of defects.
The best thing to do is increase the amoint of voluntery excess that can make a big difference and lower the premiums.
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When you took out the insurance the company were exposed to a potential risk of £10,000. Ever since, their risk exposure has been falling, but they have gone on quietly pocketing the premium. So are they going to own up and give you a hefty reduction? - No.
Probably they would argue that the £10,000 is only a small part of their total risk exposure, and an unlikely one at that. You are much more likely to bash a wing at £500 than write the car off. Also driving what is now a low value car they might argue you are very marginally less carefull than you were when you drove your brand new pride and joy, and there are still plenty of other £10,000 cars around for you to run into.
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That's wrong in all honesty
Premium's are worked out according to your age ,were you live, insurance group of the car ,
the age of the car.how many miles you travel each year ,your occupation
The older the car gets the insurance moves into a lower rating band !! regarding your age as you get older the rating band changes (goes down) up to a certain age then it starts to increase
But you are correct in that it is just a small part of what your insurance pays for !!its your liability to other drivers as well
Edited by cuthbert on 11/07/2009 at 19:39
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That's why one of the benefits of changing the insurance provider yearly is so that you can state the value of the car. I think you will have been paying extra for the last 4 years.
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My policy quite clearly states 'Market Value' in the box for value of vehicle.
I have just changed car from 1990 1.1 Fiesta to 2009 1.6 Focus, large change in car value; change in premium about £30 due to different groupings. Ins co stated value up to £25k doesn't concern them!
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... Ins co stated value up to £25k doesn't concern them!...
I filled in an online proposal and the lowest value option was 'up to £20k'.
Seems the value of the car only comes into it from around £20k/25k and above.
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