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Location:
Brisbane
Registered:
November 2002
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Re: Insurance and apparent market values
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Sun, 16 March 2003 22:14
 
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"itll be insured for that market value.....so if you're not happy with the market value.....neg it"
That's not antirely possible. It does depend on the company, but generally 'market value' is a bit of a fallacy. Basically most insurance companies work from one of two guides to set their pricing - Red Book or Glass's Guide. The figures in these books are derived from actual sale prices of actual cars Australia-wide. These are for registered and roadworthy cars sold by licensed motor dealers. There are different categories in each (eg. 1 star, 2 star and 3 star) that reflect the condition of the car (ie. poor thru perfect).
Now, the company will quote you a 'market value' but that will be an approximate figure based on that book value - and also dependant on the rating guide they base it off (eg. do they work off the 3 star price or the 1 star price?). At the time of claims, in most cases you will find that the company will have someone assess the car and give you a figure entirely different the the 'market value' you were quoted when you started the policy.
It works both ways - if they come out and look at your bucket o' bolts Mk2 with 450,000kms on it, they will pay you stuff all. However, if they come out and look at your car and think "what a shame, this is the nicest one I've ever seen!" then you will get a figure HIGHER than the quoted market value. Market value is just an arbitrary figure, and this is normally depicted in your policy wording (you DO read your policy wordings, don't you people?).
Also be careful with how they word your documentation - I once had a policy which said "$6500" and a bit further down it stated "or market value, whichever is lower". This means that they limit your payment to a maximum of $6500 but if the vehicle when inspected turns out to be worth $2000 then you'll get the smaller figure and the $6500 on your paperwork means nothing.
You will find that generally market values are NOT negotiable because they have already taken into account in their pricing for the fact that your car could be worth x% higher or lower than the 'market value' they have quoted you on.
Agreed value is a different story entirely and that is generally a fixed figure which you can negotiate. But again some companies won't let you do that - they have a figure and that's what they quote off.
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| | Subject | Poster | Date |
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Insurance and apparent market values
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Cyber-punk | Sat, 15 March 2003 04:52 |
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Re: Insurance and apparent market values
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Bugman | Sat, 15 March 2003 04:55 |
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Re: Insurance and apparent market values
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manipulate | Sat, 15 March 2003 04:58 |
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Re: Insurance and apparent market values
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Cyber-punk | Sat, 15 March 2003 05:07 |
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Re: Insurance and apparent market values
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Classique71 | Sun, 16 March 2003 12:22 |
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Re: Insurance and apparent market values
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7M-Brisbane | Sun, 16 March 2003 22:14 |
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Re: Insurance and apparent market values
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87seca | Sun, 16 March 2003 22:29 |
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Re: Insurance and apparent market values
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Astro | Mon, 17 March 2003 11:30 |
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Re: Insurance and apparent market values
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Cyber-punk | Mon, 17 March 2003 15:03 |
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Re: Insurance and apparent market values
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7M-Brisbane | Mon, 17 March 2003 21:52 |
