Car value risen up since purchase? Can such thing be updated?

arleitiss

Hey, so as many know I bought bmw recently. Then it got few things replaced and installed which in total costed around 2000 extra.
So let's say roughly that I spent 3600-4000 on a new car. But back when I bought car without servicing yet, I told insurance company that car value is between 1300-1600. So technically car is worth more now as it has new parts and stuff that will extend it's lifetime waaaay longer and it's value is a bit more now.
Should I bother and tell my insurance company or not? I mean in case of theft/fire they will pay only the price I specified in first place?

bazz26

If the market value of the car is greater than €1600 then yes I would tell the insurance company who will probably adjust your cover and premium to reflect this. However putting new parts in a car to extend it's life doesn't necessarily mean it has increased it's market value. In theory if you want to insure your car for €20k the insurance company will probably charge you accordingly but will only pay out the current market value of it.

discombobulate

I think they just go on their own list price as far as I know rather than what you tell them its worth. Any extra's probably need to be declared if they are modifications etc.

mickdw

If you have valued it lower than similar cars are selling for, then yes you should increase it. Increasing it just cause it has cost you more is pointless and insurer wont take not of new parts fitted if you claim for a total loss.
Insurers will pay out their own value or your value - whichever is lowest.

arleitiss

discombobulate wrote: »

I think they just go on their own list price as far as I know rather than what you tell them its worth. Any extra's probably need to be declared if they are modifications etc.

It's stuff like head gasket replaced, new cooling system etc...
Not really modifications that will improve performance.

dar83

They don't increase the value of the car though.

Unless you've undervalued it originally, then the new parts you've put into it don't make any difference to it's market value whatsoever, so no need to tell your insurance company anything.

arleitiss

dar83 wrote: »

They don't increase the value of the car though.

Unless you've undervalued it originally, then the new parts you've put into it don't make any difference to it's market value whatsoever, so no need to tell your insurance company anything.

Alright thanks, I guess I will leave it. Wont say anything just in case they decide to rise premium because of this.

_Kaiser_

Actually, related to this question...

Should you be DEvaluing the car every year on renewal, or does it matter?

I mean, I know for a fact that well-cared for as it is, serviced on time by a dealer etc, that if the worst happened I wouldn't get anywhere near what I paid for it/it's probably still valued at.

Should I be adjusting the value accordingly, or does it make any difference?

bazz26

On some comprensive policies it doesn't matter.

MugMugs

Kaiser2000 wrote: »

Actually, related to this question...

Should you be DEvaluing the car every year on renewal, or does it matter?

I mean, I know for a fact that well-cared for as it is, serviced on time by a dealer etc, that if the worst happened I wouldn't get anywhere near what I paid for it/it's probably still valued at.

Should I be adjusting the value accordingly, or does it make any difference?

Depends on the Insurer / Underwriter.

Some claim it does, others say it doesn't.

discombobulate

I know when my last renewal was up that I tried 12k and 8k as values of my car just to see if there was a difference and it didn't make any. I'd say put the value down at slightly over what its worth every year.

At the end of the day their going to give you what its currently worth unless you put down that its worth less. They'll probably just give you your valuation then.

OP i'd agree that they don't add to the value of the car directly but if you bought it for less than the market value then these fixes would probably bring it to market value price.

TwoShedsJackson

Kaiser2000 wrote: »

Actually, related to this question...

Should you be DEvaluing the car every year on renewal, or does it matter?

I mean, I know for a fact that well-cared for as it is, serviced on time by a dealer etc, that if the worst happened I wouldn't get anywhere near what I paid for it/it's probably still valued at.

Should I be adjusting the value accordingly, or does it make any difference?

Yes, if it decreases the premium. They'll only pay the book value or whatever you insured it for, whichever is lower, so no point in over-insuring. It's the same with houses, you get people insuring their house for what they paid for it, which is insanity as the insurers will only cover the rebuild cost.

_Kaiser_

Cheers for the replies lads. Renewal is up shortly so will see what they say then.