Agreed Value...

So out of curiosity I thought I would go down the pathway of researching the market value of our car by going through what is undoubtably the largest online site for the sale of motorcars in Australia with advertisers from both car-yards and private sellers. Now initially in my head and going by the maximum agreed value set by the insurance companies our is valued at about $10k. This is a fairly standard white family vehicle - Toytota Kluger. Anyway I wondered that if this car was written-off could we replace it for $10k and I was surprised to find that any equivalent Kluger - same colour, model, years and kilometres on the clock would cost us around $22k. I got in touch with a number of the major insurance companies to discuss how their actuarists establish this agreed value based on what ever algorithms they use and how our car could only be insured for half of this current market should be write the vehicle off. Each time I was informed that this is the price that is set by their assessors and agreed value is just that, you agree to their value.

So, trying to insure our vehicle at a price that would replace "like for like" seems an implausible option. You would think that such a mainstream vehicle would reflect how valuations occur with most vehicles (short of going to a specialist insurance agent - Shannons or the like (but a Kluger is anything but a Shannons type car)).

Out of interest I though I would throw this one out there to see if it is just the case with others vehicle models and makes, as is seems the age old "market" value principle does not apply anymore.

So, trying to insure our vehicle at a price that would replace "like for like" seems an implausible option.

Just insure it for an agreed value, your then covered

Exactly that, "agreed value" doesn't mean you actually agree to it. They have an agreed value that is bound by limits, which consistently fall well below and in most cases about half of what can be found in the real market.

Doesn't 'agreed value' literally mean that this is the value that they are insuring for, as opposed to market value?

I had a friend years ago that had his car stolen and went through a drama with the insurance company about the market value. In those days things were not as easy to research, but he ended up getting reports from his mechanic showing that the car was in good condition and kept well.. They ended up paying a proper market value, but they were not keen on it. It took him a while.

If its agreed value though, you will get only that minus the excesses and the like.

And check your policy every year. My 'agreed value' was never altered by me but has gone from $14K to $7K without the premiums dropping.

Here is my review of Allianz Im not sure who your with But there keen to take your money and not pay out. Just want a fair go. I was ready to punch the insurance Asser (a unsupervised trainee) in the head scull drag the stupid **** down my drive way and leave him at the gate while i set his car alight.
Make no misunderstanding. Insurance companies are bottom feeding dogs.

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Mr Milk said..
I keep seeing ads on SBS for some insurance company that claims as long as you buy your car new and insure with them from new, they'll replace it with a new car if it gets wrecked.
I don't care, because I don't buy new and carry 3rd party damage.
Mind you, I'll be annoyed if some halfwit hits me and their insurer won't give me enough money to buy a similar vehicle.

And you'll pay a premium to match.

My latest insurance premium was $295 per annum. Third party property only, of course, but kind of amusing that it's probably more than I'd be able to sell the car for.

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Harrow said..

Mr Milk said..
I keep seeing ads on SBS for some insurance company that claims as long as you buy your car new and insure with them from new, they'll replace it with a new car if it gets wrecked.
I don't care, because I don't buy new and carry 3rd party damage.
Mind you, I'll be annoyed if some halfwit hits me and their insurer won't give me enough money to buy a similar vehicle.

And you'll pay a premium to match.

My latest insurance premium was $295 per annum. Third party property only, of course, but kind of amusing that it's probably more than I'd be able to sell the car for.

The sad thing is that comprehensive on your car would still cost a lot, as even though its older the premium has to cover the same work to repair as would be involved in a new car, and in some cases it can cost more. At least the 3rd party component should be the same.

I am all for 3rd party insurance only, but when was in Sydney there were so many idiots on the road during my commute that I almost expected to be run into and have people try and get out of it, so comprehensive is worth it sometimes. Now I have cheap dashcams fitted to each car just in case as I am sure the idiots that do stupid things on the road will also be the same idiots that lie about it when things go wrong.

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dratts said..
Insurance is an absolute joke. I had been with one insurer for 23 years, never made a claim. Just got my renewal on 2016 Navara, premium went up another $120 from last year, value dropped 2k. Having just turned an age where i can claim to be a senior,, i rang around. As i plan on doing some travelling i had recently added some 10k worth of extras, which i hadnt told my old company about. New seniors insurer, with the extras, insured for 5k more than previous, for $300 less per annum. Phoned old insurer, added the extras and was told it would be another $398 on top of the $120 it went up. Needless to say they are now my ex insurance company. Two cars and home and contents moved.

I think this is where 'seniors insurers' have their niche. They are cherry picking a market where claims are less, so the premiums can then be less.

It makes me wonder though, how niche can you be before you are discriminating against other people? With insurance I guess its already like this when they charge higher premiums for higher risk, but with specialty insurers they just have that market only.

Agreed Value... ?


Well, if there is one thing we can all agree the value of, then it is the value of Carantoc's contributions to these very forums.....

I wonder what premium Laurie pays for his insurance against the loss to Seabreeze.com.au should Carantoc's quick wit and endearing charisma depart.

One can only shudder at what a heinous outcome that would be, but at least we can all rest assured the likelihood is incredibly low.

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busterwa said..
Here is my review of Allianz Im not sure who your with But there keen to take your money and not pay out. Just want a fair go. I was ready to punch the insurance Asser (a unsupervised trainee) in the head scull drag the stupid **** down my drive way and leave him at the gate while i set his car alight.
Make no misunderstanding. Insurance companies are bottom feeding dogs.

Sister had an issue with same company, car was written off in an accident however when she made a claim said company refused to acknowledge her policy existed.

After a protracted battle she gave up, then a several months later insurance company sent a renewal notice for said policy. They were told to go sick it up their arse.

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goofy said..

busterwa said..
Here is my review of Allianz Im not sure who your with But there keen to take your money and not pay out. Just want a fair go. I was ready to punch the insurance Asser (a unsupervised trainee) in the head scull drag the stupid **** down my drive way and leave him at the gate while i set his car alight.
Make no misunderstanding. Insurance companies are bottom feeding dogs.

Sister had an issue with same company, car was written off in an accident however when she made a claim said company refused to acknowledge her policy existed.

After a protracted battle she gave up, then a several months later insurance company sent a renewal notice for said policy. They were told to go sick it up their arse.

Goofy continue to disrupt operations and leave bad feedback about your insurance company .Make your experience known. as consumers, we can make a difference.

insurance is a scam

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japie said..

theDoctor said..
insurance is a scam

So is banking

Most insurance companies are owned by banks

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shi thouse said..
Alternative....not insure.

Any organised sporting event that I do or my kids do.....majority of the cost is.....wait for it........insurance.

Blame the legal system. If more cases are won over "negligence" then insurance is the only answer. It would make sense for lawyers to be insurance brokers.