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Car value for insurance?

  • 20-08-2018 1:30pm
    #1
    MaudL
    Registered Users, Registered Users 2 Posts: 231 ✭✭


    Hiya,
    It's that time of the year for me to shop around for car insurance.
    What I'm always confused about is which value to declare for my car?
    Facts:
    - 161 reg, Hyundai i20
    - Bought new with a 5-year car loan, 40% paid off approximately now
    - Never been in accident
    - Always insure comprehensive

    So should I value it at original purchase price minus financing costs? Or current market value? If the latter, how do I figure out what it is, is there some official guideline somewhere?

    Thanks!


Comments

  • #2
    Eggs For Dinner
    Registered Users, Registered Users 2 Posts: 2,996 ✭✭✭Eggs For Dinner


    Current market value, finance has nothing to do with valuation for insurance purposes. Search for similar makes, models, mileage etc on Autotrader or Buy & Sell


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    MaudL wrote: »
    So should I value it at original purchase price minus financing costs? Or current market value?

    If you write off the car, the debt won't die with it. So you insure to the full market value of the asset.

    Don't kid yourself that you will get what you think the car is worth, best to go low with a conservative valuation. But not so low that they decide you have been underinsured in which case they will deduct a % in the event of a claim (under fully comp. cover) for damage which is below write-off territory.


  • #4
    Snotty
    Registered Users Posts: 1,298 ✭✭✭Snotty


    Do not go low.
    Go with the market value and assess that by adverts for similar cars.
    If you have a value of 10500 and the market value was 11000 then you only get 10500. If you say the value is 11500, you would only get 11000.


  • #5
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    Snotty wrote: »
    Do not go low.

    What I said was 'go low with a conservative valuation' which is the right thing to do because that's the valuation the insurance will give you. Most people think their car is worth more than what they will get in a write-off situation. I'm simply telling people to be realistic and not pay a higher premium for a bloated valuation.


  • #6
    Snotty
    Registered Users Posts: 1,298 ✭✭✭Snotty


    coylemj wrote: »
    What I said was 'go low with a conservative valuation' .

    Yes, which is incorrect and poor advice. Go with market value and not low or conservative. The extra amount will likely add nothing to your premium but will ensure you are not under estimating and out of pocket in the event of an accident.


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  • #7
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    Snotty wrote: »
    Yes, which is incorrect and poor advice. Go with market value and not low or conservative.

    And who defines 'market value' when it comes to how much you will get if your car is written off?

    I'll tell you - it's the insurance company who writes the cheque. And their valuations are always conservative.

    Plenty of threads in this and the Motors forum from disgruntled drivers who felt they were short-changed and didn't get as much as they thought their car was worth.
    Snotty wrote: »
    The extra amount will likely add nothing to your premium but will ensure you are not under estimating and out of pocket in the event of an accident.

    The 'extra amount' (if you over value) will add to your premium, it's pretty much a linear relationship.


  • #8
    nsa0bupkd3948x
    Closed Accounts Posts: 783 ✭✭✭nsa0bupkd3948x


    coylemj wrote: »
    The 'extra amount' (if you over value) will add to your premium, it's pretty much a linear relationship.

    Putting my car value at 10k and not 9.5k dropped my premium buy 200€.

    Having it at 1.2k instead of 800 saved me €50....


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