Motor Does Value of Car affect Insurance Value

F

feltox

Registered User
Messages
75
I have a 2000 car and have the same value of 6k on it since purchased in 2004.

I now know the most it could be worth to-day is 2500-3k

Does reducing the value form 6k to 3k have much of an effect on an insurance renewal quote

Main question is if i reduced the market value- does it have much effect on quote and also why dont insurance company reduce value of car each year as it naturally going downwords
 
Hi
Yes, car value affects your insurance quote. I was messing around with insurance quotes for on an old car I had. Reducing the value down below €3k actually INCREASED the cost of the quote!
 
My insurance told me that once it's down to 5k they don't give a reduction on premium after that, but companies may vary.
 
No point having a car over valued for insurance purposes because in the event of a claim they will only pay out at the current market value.
 
I was told by my ins co that unless the car was valued at over 75k.. I wish... then there would be no reduction in premium for reducing the value of it on a year to year basis.
 
PaddyBloggit said:
No point having a car over valued for insurance purposes because in the event of a claim they will only pay out at the current market value.
Click to expand...

100% agree with you on that, they will never pay you out more than the book value unless you are insured for extras/mods added to the car. So keep it just above market value just in case they want to bump you down a bit. This should reduce the quote, nless they think the car is in bad condition, which they may then put the price up with the expectation that something could go wrong.

Hope that helps

Gary
JustGoodCars
 
I think they also discount for good driving and no accidents as well. In the end your insurance quote should reflect the value (year, make, model) of your car and the experience of the person driving it as well.
 
Any time I asked about reducing car value and adjusting the insurance quote, I was told that they use bands (e.g. 18k - 24k) rather than individual values to work out the insurance. I never seemed to get out of one band and into a lower one while still having the car appropriately insured!
 
Be wary of the bands too. If your car is worth, say €10,000, try entering a market value of €9,995 - this may save you a few quid with some insurers.
 
tenchi-fan said:
Hi
Yes, car value affects your insurance quote. I was messing around with insurance quotes for on an old car I had. Reducing the value down below €3k actually INCREASED the cost of the quote!
Click to expand...

Agreed. This was the case with Quinn 2 months ago. I got quotes on two different cars, 96 Almera & 2001 Carisma. Increasing the value of the cars decreased the value of the premium for both cars. Insurance was third party.
 
PaddyBloggit said:
No point having a car over valued for insurance purposes because in the event of a claim they will only pay out at the current market value.
Click to expand...
Yeah, so why do they even bother asking the current value of the car when they know exactly what it is?
 
Because if you under value your car and god forbid its written off in an accident they will only pay what you valued it at, even though on their books it could be worth more...
 
doubledeb said:
Because if you under value your car and god forbid its written off in an accident they will only pay what you valued it at, even though on their books it could be worth more...
Click to expand...
Seems like it's loaded in the insurance co. favour. Why not just use an independent valuation mechanism like the Revenue's OMSP to decide on value. So if i have an 04 Astra and the OMSP for that year and mileage is €5000, then i insure the car to the value of €5k, and if i write it off then i get a cheque for €5k. Am i being too simplistic?
 
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