Wrong car value on insurance

[GalacticaActual]

Hi all, spent a great deal of time today sorting out car insurance with current provider.
However once quote agreed etc, I have realised my car value on the policy is lower than it should be buy at least 50 percent

I didn't value it though, it was a figure they came up with.

Current value is 595 but it should be around 1495.

How much is it Likley to effect the premium if I change it?

Thanks 👍

 

[DevCode]

595 is the 'real' value the car is worth, is 1495 the price you paid via a dealer or to you, even if you up the valuation, they will still only offer the trade value if written off. Whack your reg into auto trader and see what the partex price is.

 

[GalacticaActual]

That is what got from what car and auto trader.
That's the value today 😊👍

 

[GalacticaActual]

 

[GalacticaActual]

595 is the 'real' value the car is worth, is 1495 the price you paid via a dealer or to you, even if you up the valuation, they will still only offer the trade value if written off. Whack your reg into auto trader and see what the partex price is.

Lol, even put the wrong value in my first post ***!

 

[DevCode]

Ok, yep, I'd ask them to set at 1k, or there abouts, it shouldn't make a lot of difference to the premium but

 

[Delvey]

Doesn't matter really. If you wrote it off an independent garage would value it

 

[GalacticaActual]

Doesn't matter really. If you wrote it off an independent garage would value it

Really?

So an undervalue figure wouldn't effect the premium?

 

[GalacticaActual]

Sorry, policy, not premium.

 

[IronGiant]

I don't think at that end of the scale the declared value is going to affect the price of the policy by much. Most of the cost is to cover the expense they will incur if you collide with a Ferrari and it's your fault . However, if I remember correctly, they will never pay out to you more than the declared value of your vehicle, so it's probably worth establishing a fair value from the start.

 

[LV426]

If I remember my (very old) law training correctly, any insurer can legitimately (which does not mean to say they will) refuse to pay on any aspect of the entire policy if any of the details you supply are inaccurate. The entire policy contract is avoided if you misrepresent any material fact. By which I mean (for example) - if you falsely declare its value they may refuse to pay out for that Ferrari you wrote off. As I say - old, distant classes; I do stand to be corrected.

 

[Delvey]

I don't think at that end of the scale the declared value is going to affect the price of the policy by much. Most of the cost is to cover the expense they will incur if you collide with a Ferrari and it's your fault . However, if I remember correctly, they will never pay out to you more than the declared value of your vehicle, so it's probably worth establishing a fair value from the start.

They do. I bought a Mazda 6 for £800. And declared the value at £800. A bin lorry reversed into me (not my fault) and wrote it off. The independent valued it at £1500 and that is what I got paid out minus my excess

 

[IronGiant]

I stand corrected, thanks

 

[Delvey]

I stand corrected, thanks

No problem. The issue is how some insurers word that part of the quote. Some will ask how much the car is worth, others will ask how much you paid for it. 2 completely different things.

 

[GalacticaActual]

Thanks everyone.

I called them today with the proper valuation, the price went down by 17 pound! 😁

 

[outoftheknow]

They do. I bought a Mazda 6 for £800. And declared the value at £800. A bin lorry reversed into me (not my fault) and wrote it off. The independent valued it at £1500 and that is what I got paid out minus my excess

Although that is the offer of the other insurance so is not related to your policy value AFAIK.

if you hit the lorry and wrote your car off your insurance would likley offer $800.

Over here you can choose market value or fixed price each year. You can go a certain percent under or over the market value to either save or spend more on the premium.

With market value though the assessor will still asses the value of the car on the day of write-off so you might be lucky

 

[Delvey]

Although that is the offer of the other insurance so is not related to your policy value AFAIK.

if you hit the lorry and wrote your car off your insurance would likley offer $800.

Over here you can choose market value or fixed price each year. You can go a certain percent under or over the market value to either save or spend more on the premium.

With market value though the assessor will still asses the value of the car on the day of write-off so you might be lucky

I was fully comprehensive and my insurers paid me out before any blame was considered.

 

[Deleted member 498601]

I know it's moot now, as @GalacticaActual has sorted it, but...

When I tried to get insured on a bike recently, because the value was in the ballpark of £20k, my current insurer wouldn't touch me with a barge pole, yet on a less valuable bike they would.

I would imagine if I told them that the £20k bike was worth £10k instead, they may have insured me, however, if I had cause to claim, they may well then decide that I'd lied to them and not pay out.

From this I learned that a cheaper bike is cheaper to insure (perhaps obviously). I don't suppose it matters much what the car/ bike costs - it's making sure that the information given to the insurer is accurate. I would imagine that if you did tell the insurer that your car was worth £500, because that's what you paid for it, that would be fine. In the event of a total-loss claim (write-off), I think they'd probably set that cost as the maximum pay out.

It's possibly the honesty of your information that would be most important, rather than the accuracy? IMBW though.