So do insurance premiums actually have anything to do with the value of your car?

samsemtex

I was on 123.ie lookin at quotes for an s60R and then an M3 just for comparison and there was only a couple of hundred in the difference bot costing €1700-€1900. Then I said I'd see what they would quote me in a 2005 Ferrari F430 with a value of €250,000. To my surprise it would only cost me €4,400 to insure myself on a supercar capable of over 200mph.

Does it seem a little crazy to anyone else that i would only have to pay a couple of grand more to insure a Ferrari than to insure a Volvo that is worth less than 1/10th of the price?

Top Dog

Nope. The value of the car is only a very small factor in working out the premium charged. Frequency of thefts and accidents for a particular car would have much more bearing on the premium charged.

AugustusMaximus

I too think this is crazy considering how much it would cost the insurance company if you were to w/o a 250k Ferrari.

ardmacha

Insurance is mostly to pay for the people you crash into, the value of your car is not the main point,

westwicklow

what's the logic behind charging certain rates for insurance premium and in the event of an accident, after paying the agreed premium, the insurance company tell you you are over insured, under insured or the compensation award is less than the agreed valuation?

Berty

The value of your car is reflected in the preimum. It is the replacement value in the same way your own home is insured as a re-building value.

You could not expect to insure a Ferrari the same as a Suzuki Swift

Trampas

I don't think it does.

Doesn't matter if you insure your 00 Micra for 5k as they will only give you the book price and the values of cars are built into the rating engine

samsemtex

Berty wrote: »

The value of your car is reflected in the preimum. It is the replacement value in the same way your own home is insured as a re-building value.

You could not expect to insure a Ferrari the same as a Suzuki Swift

Well obviously not since a Suzuki Swift would probably cost me about €1,000 to insure and i think its fairly safe to say an F430 is worth more than 4x times the price of a Suzuki Swift.

Anan1

Berty wrote: »

The value of your car is reflected in the preimum. It is the replacement value in the same way your own home is insured as a re-building value.

You could not expect to insure a Ferrari the same as a Suzuki Swift

samsemtex wrote: »

Well obviously not since a Suzuki Swift would probably cost me about €1,000 to insure and i think its fairly safe to say an F430 is worth more than 4x times the price of a Suzuki Swift.

The value of the car is reflected in the premium, but it's a small part of the overall risk and therefore doesn't have that much of an effect. Even Ferraris are cheap compared to potential third-party claims, which is why the insured is the main factor in calculating a premium.

eman66

The insurance company had my car down as having 230bhp and a value of €38,000. The quoted me on this info. I corrected them on the bhp (200) and the value (25000). Didn't make any difference to the quote.

Wishbone Ash

The value of your car isn't really that important. Replacing or repairing it is chicken feed compared to the costs of personel injuries claims which regularly run into millions of euros. A €250 car can do the same damage to a pedestrian as a €250,000 car.

copacetic

agreed on all of the above, car value is only a small part of the quote.

I doubled the cost, power and engine size of my car this year and insurance only changed by 30 euro or so.

lau1247

it did make a difference on my renewal quote last year..

the initial quote was 990 or so (The year before the renewal they had my car down worth for 13,000)..
But due to car ageing and that insurance company only pay out the current market value, I requested them to correct that to about 11,500 which then the quote came down to 960 or so..

It does make a difference but it is very small..

Wishbone Ash

copacetic wrote: »

I doubled the cost, power and engine size of my car this year and insurance only changed by 30 euro or so.

I bought a car about 15 times greater value than the last and it only went up by €30.