Insurance Question

[Crackfox]

Yesterday I was talking to a mate who was saying that his car, a 90's model daewoo lanos is insured for an agreed value of $12,500, even though he got it from his mum who payed under $3000 for it a few years ago. He reckons if he writes it off he will get payed the whole 12.5 grand but I reckon that they would just buy him another daewoo lanos or reevalute his vehicles cost when he does crash it. He is also obviously paying a decent amount more than he should for his insurance due to the agreed value being so high. Thoughts?

[GTR-N1]

Theoretically, he should get the full amount.

However, there can be a couple of BUTs...

On occasions, the Insurance Company can get suspicious eg. having claimed for the full amount before.

If an investigator (hired by the insurance company) interviews him, and it would be recorded,

the sleuth may want to know info like how much he paid, what he told the RTA that he paid, proof of his whereabouts if the car was stolen, etc etc.

He doesn't have to consent to an interview if that was suggested by the insurance company, but that could count against him in some fashion.

Most interviews are carried out by the hired PI if a car is stolen under suspicious circumstances or that an accident may have been contrived.

There's more fine print on the "POLICY" that can vary from one company to another. This needs to be read.

Personally, I prefer an 'Agreed Value' policy over a 'Market Value' one; even though it costs a bit more.

You've reached the extent of my knowledge now.

[mad082]

also it depends on how long ago he was told that it was valued at that much. if he has renewed his insurance since then he may find that that value has dropped since then.

[.:: GimpS-R34 ::.]

yeah but he's paying for an agred value not market value? so he should be paid for an agreed value unless the insurance company decides to be assholes

ps. what is the market value of his lanos? just cause mummy gave it to him for 3k doesnt mean its worth that.. And if he's trying to show off pffft its a lanos

[mad082]

yeah but he's paying for an agred value not market value? so he should be paid for an agreed value unless the insurance company decides to be assholes

ps. what is the market value of his lanos? just cause mummy gave it to him for 3k doesnt mean its worth that.. And if he's trying to show off pffft its a lanos

yes but they alter the agreed value every year. you may not realise it, but if you look closely when you get the renewal info you would notice that the value has changed. if you got agreed value on a brand new car, they aren't going to pay that same value 3 years on when the car is worth less than half that.

that said, some insurance companies will give you pretty good agreed values. the missus was looking at it when her insurance came up for renewal last time on her 2000 SSS pulsar. there was a $5000 difference in values between 2 companies she looked at. the higher of the 2 was the same as what i paid for the car back in 2003 (which was 17k).