Change of value of car on insurance, what effect?

aster99 · 22-05-2010 8:50pm #1

If you change the value of your car on insurance policy what is the effect on the premium paid?

On my policy my car is valued at €10,000 as it was when i started the policy 4 years ago. Now the car is worth maybe €6,000.

What benefit would it be to me to inform the insurance company that i want the value changed

jaffa20 · 22-05-2010 8:54pm

Don't think it really affects it. You could value your car at 100k if you want but they'd only pay you the market value in the event of a claim.

goat2 · 22-05-2010 8:56pm

that is a mistake everyone makes
their car is devalueing every year
so you should be taking this into consideration when insuring, as the lower value will bring lower price insurance

lau1247 · 24-05-2010 8:31am

you should update the price every year as it drops..

This would lower the premium but on slightly..

Also keep in mind that the insurance company on pay out market value so no point of going too high but also be careful not to go below the market value because then they'll likely to pay the value you're insured for..

In the end insurance company always wins.. that's my opinion

L1011 · 24-05-2010 8:41am

Dropping from 5k to 3k on a previous car reduced the annual premium by a massive €17, but that was on TPFT. It'd be more on comprehensive.

I changed insurer while changing value this year so I can't extract a proper figure from that.

Del2005 · 24-05-2010 9:11am

Easiest way to see is use an online quote site, your current company would be best, and stick in the different values.

Del2005 · 24-05-2010 10:14am

betafrog wrote: »

Changing it won't have massive effect until you hit a certain point at which your premium will actually increase..

I remember when working for Quinn that if anyone insured their car for less than €2,000 then their premium went up instead of down...

Yeah I got stung with that, now I'll never insure anything for less the €3000, my insurance went down a decent amount when I increased the value of my last car. And it doesn't mater if you over insure as they'll only pay book value when you claim.

L-M · 24-05-2010 10:51am

Leave it. IIRC (from my past readings on here) that figure only means it is the absolute maximum they will pay in the event of a claim.

So say you insure a new Passat and put the value at 10k, if you crashed, even though the book value maybe be 20k, the max they will pay you is 10k.

Likewise, if you insured it as 30k, and the book was 20k, they would give you the 20k.

Keep it about 1,000 higher than the book value.

Change of value of car on insurance, what effect?

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