insurance - car value...

[joko]

when sorting insurance it asks you for your cars value...would this be
the price you paid for it?
the price to replace it?
its market value...?

just wondered because i got my car for quite a lot less than its worth as it was kind of from a friend of a friend looking to buy a new car fast so wanted the cash fast

just wondering what to put...i assume the higher the value, the higher the premium...but what effect would a lower amount have on the situation if i made a claim?
would they just not pay what id need or something?

thanks

[ABerrant]

They are looking for the market value and provided the car is not worth silly money (£50,000+) your policy will state "market value" and not a specific amount. TBH no matter what figure you put, in the event of a claim they will assign the market value they will pay out (although you could disagree and argue the point).

[joko]

tahnks

so if i put the lower amount of what i actually paid, it wouldnt affect a pay out but will make my premiums a wee bit lower?

you mean they will value the car themseves regardless of what i put or paid?

basically i paid 1600, an a website car valuer offered me 2000 to buy it off me - but they would want to sell an make a profit, so i assume its worth a bit more really...not sure what though...

[ABerrant]

If the car is standard (i.e. not modified) it should have no bearing on the premium if you were to state the car was worth £2000 or £1600 or even £1000 - the car will be classed "market value" and the insurer will have an idea of what they think "market value" is (and is probably a more accurate idea than that of the customer). However if your car is stolen or written off in 10 months time you can rest assured that "market value" (whatever they thought that was for premium purposes) will have dropped in regard of any payout.

Here is a bit of interesting reading from the Financial Ombudsman Service...

http://www.financial-...22-motorinsurance.htm

[R1Geezer]

What you put will be the most you get so put in what is a sensible market value, what you paid is irrelevant here. In reality they'll pay you what they deem the value at the time it becomes necessary.

[joko]

thanks all
its hard to say whats its worth really because the car was owned by a mechanics brother so been kept in tiptop condition despite it having 160.000 on the clock and being a 2002 model

do they value them by the actual individual cars condition etc or just make a blanket assumption ?

[R1Geezer]

they'll use a glasses guide type approach. The fact that the car was only driven by Mother theresa to go to church on Sundays, will cut no ice.

[joko]

lol geezer, yes i know that... i meant the fact that the car has been kept mechanically sound, regularly serviced, replacement parts, constant attention etc, that it is likely worth more than other cars of a similar spec...

do they take this into consideration when valuing it?

[ummmm]

160,000....that's a lot of miles.