Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Please note that it is not permitted to have referral links posted in your signature. Keep these links contained in the appropriate forum. Thank you.

https://www.boards.ie/discussion/2055940817/signature-rules
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Insuring car for less than market value and getting hit!

  • 18-05-2015 8:10pm
    #1
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭


    Insured my Audi for 4000 after buying it for 3800 on dondeal. Got hit 6 weeks after insuring and there's 5800 worth the damage! Just found out market value of car is 5800 and car is now a financial right off but just waiting on word back from insurance company to confirm it all. I've now been getting conflicting information relating to my pay out. Some are saying because I'm claiming of another parties insurance and because they've admitted liability, I'll get the market value payout however others are saying I now won't even get the full 4k payout I insured it for because I under valued the car.


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,620 ✭✭✭✭coylemj


    Under valuing it is only an issue when claiming off your own fully comp policy. If someone else damages it, it doesn't matter what value you declared to your insurance company. The other guy's liability to you is for the damage caused and that is not capped at what value you put on the car for the purposes of your own policy.


  • #3
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭duckcfc


    coylemj wrote: »
    Under valuing it is only an issue when claiming off your own fully comp policy. If someone else damages it, it doesn't matter what value you declared to your insurance company. The other guy's liability to you is for the damage caused and that is not capped at what value you put on the car for the purposes of your own policy.

    So in a nutshell, I'll get the market value for this car going by what you say.


  • #4
    Graham 1324
    Registered Users, Registered Users 2 Posts: 90 ✭✭Graham 1324


    Market value is what you'll get no more no less


  • #5
    doolox
    Closed Accounts Posts: 2,350 ✭✭✭doolox


    Since you will be claiming off the other guys insurance.


  • #6
    CianDon
    Registered Users, Registered Users 2 Posts: 568 ✭✭✭CianDon


    Had this issue when I had a bad smash last year. I bought my car for what was the market value at the time but over the course of my 18 months ownership the values begin to spike but never thought to change the agreed value on my insurance. This was at €1600 AFAIR but Id turned down just short of 5k a week before the accident and the market value was now well into the mid 4's. Insurance offered to pay me off the €1600 saying it was market value but we both knew it was a mad offer. Went back and forth with them for a while and they raised offer while citing examples of other vehicles sold yet these were all clapped out and rusty examples. Battled on for about another week and we both agreed on €2600 which was still about half the true value but the best I was gonna get from them


  • Advertisement
  • #7
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭duckcfc


    Graham 1324 wrote: »
    Market value is what you'll get no more no less

    Where can I find out the true market value of a car


  • #8
    Fred Swanson
    Closed Accounts Posts: 21,730 ✭✭✭✭Fred Swanson


    This post has been deleted.


  • #9
    coylemj
    Registered Users, Registered Users 2 Posts: 25,620 ✭✭✭✭coylemj


    duckcfc wrote: »
    So in a nutshell, I'll get the market value for this car going by what you say.

    Yes, you will never get more than the market value, regardless of what value you have nominated on your own policy or who is paying.

    If you under value and your own company is paying (under fully comp.), you will get the nominated amount if it's less than market value.

    The value you nominate is a matter between you and your own insurance company. When you're claiming off someone else, it's none of their business what value you put on the car with your own insurance and you are under no obligation to disclose the number.


  • #10
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭duckcfc


    coylemj wrote: »
    Yes, you will never get more than the market value, regardless of what value you have nominated on your own policy or who is paying.

    If you under value and your own company is paying (under fully comp.), you will get the nominated amount if it's less than market value.

    The value you nominate is a matter between you and your own insurance company. When you're claiming off someone else, it's none of their business what value you put on the car with your own insurance and you are under no obligation to disclose the number.

    If its same company, they will know


  • #11
    Fred Swanson
    Closed Accounts Posts: 21,730 ✭✭✭✭Fred Swanson


    This post has been deleted.


  • Advertisement
  • #12
    CiniO
    Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    duckcfc wrote: »
    If its same company, they will know

    It doesn't matter.
    If they are paying you under third party from someone else's policy, they have obligation to compensate you for you full loss. Car value you declared to your own insurer is completely irrelevant.
    In fact if you had no insurance at all, they would still have to pay you.


  • #13
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭duckcfc


    If car is 5800 to fix and is worth 5800, would they not just give me the 5800 and the car so I can fix it up and put back on the road instead of writing it off.


  • #14
    pablo128
    Closed Accounts Posts: 6,219 ✭✭✭pablo128


    duckcfc wrote: »
    If car is 5800 to fix and is worth 5800, would they not just give me the 5800 and the car so I can fix it up and put back on the road instead of writing it off.

    They would give you 5800 minus the scrap value, whatever that is.


  • #15
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭duckcfc


    pablo128 wrote: »
    They would give you 5800 minus the scrap value, whatever that is.

    Are cars selling for 250 cash these days or do some cars fetch more than others?


  • #16
    coylemj
    Registered Users, Registered Users 2 Posts: 25,620 ✭✭✭✭coylemj


    duckcfc wrote: »
    If car is 5800 to fix and is worth 5800, would they not just give me the 5800 and the car so I can fix it up and put back on the road instead of writing it off.

    Writing off a car means that it's not economically worth repairing - it doesn't mean that it's worthless. So if you want to hang on to it, you will need to negotiate a deduction for the scrap value. If you want the full 'market value' in your hand, you have to let them take it away as they are legally entitled to do because they now own it.


  • #17
    CianDon
    Registered Users, Registered Users 2 Posts: 568 ✭✭✭CianDon


    duckcfc wrote: »
    Are cars selling for 250 cash these days or do some cars fetch more than others?

    In my case, a written off car is offered by the insurance company in an auction over a week to salvage companies. They can make bids on the car, obviously they tally up what is available to be made in parts or scrapping. The final higgest bid is met by the owner and deducted from insurance pay out if you keep the car


  • #18
    duckcfc
    Banned (with Prison Access) Posts: 616 ✭✭✭duckcfc


    If car is a cat-c, I get it fixed, can anyone tell me how much an engineers report is to get it back on the road. Thinking of getting it fixed


  • #19
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,856 Mod ✭✭✭✭Henry Ford III


    I can't see how a claim for damages to a car insured for €4k could be any more than €4k regardless of market value.


  • #20
    To Elland Back
    Closed Accounts Posts: 1,923 ✭✭✭To Elland Back


    Henry Ford III wrote: »
    I can't see how a claim for damages to a car insured for €4k could be any more than €4k regardless of market value.

    The wrongdoing 3rd party compensates you for your loss. Your own contract arrangements with your insurer have no bearing on your entitlement.


  • #21
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,856 Mod ✭✭✭✭Henry Ford III


    To Elland Back wrote: »
    The wrongdoing 3rd party compensates you for your loss. Your own contract arrangements with your insurer have no bearing on your entitlement.

    I know that but the op already said he paid €3.8k for the car and insured it for €4k. Isn't that the extent of the loss?


  • Advertisement
  • #22
    testicle
    Closed Accounts Posts: 5,429 ✭✭✭testicle


    Henry Ford III wrote: »
    I know that but the op already said he paid €3.8k for the car and insured it for €4k. Isn't that the extent of the loss?

    No, he's not claiming off his own insurance, so what he has it insured for is irrelevant. The paying out insurance company has valued the car at 5800, and as a write off, so that is what will get paid out.


  • #23
    Graham 1324
    Registered Users, Registered Users 2 Posts: 90 ✭✭Graham 1324


    duckcfc wrote: »
    Where can I find out the true market value of a car

    Done deal?


  • #24
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,856 Mod ✭✭✭✭Henry Ford III


    testicle wrote: »
    No, he's not claiming off his own insurance, so what he has it insured for is irrelevant. The paying out insurance company has valued the car at 5800, and as a write off, so that is what will get paid out.

    I don't think so. Nobody (in their right mind anyhow) would pay out more than the sum assured.

    It just doesn't make sense, to me at least.


  • #25
    coylemj
    Registered Users, Registered Users 2 Posts: 25,620 ✭✭✭✭coylemj


    Henry Ford III wrote: »
    I don't think so. Nobody (in their right mind anyhow) would pay out more than the sum assured.

    It just doesn't make sense, to me at least.

    That would apply in the case of fire insurance, you value the cost of rebuilding your house in the event of a catastrophic fire and pay accordingly, that then represents the maximum your insurance company will pay you. If you under insure by 25% then any claim you submit will be reduced by a quarter because you've haven't paid for full cover.

    This case is about a third party claim, the person who totalled the OP's car shouldn't benefit from the fact that he might have underinsured it on his own policy and as another poster has pointed out, the OP is entitled to the market value even if it wasn't insured at all once it was the other guy's fault i.e. someone else's insurance is paying.


  • #26
    To Elland Back
    Closed Accounts Posts: 1,923 ✭✭✭To Elland Back


    Graham 1324 wrote: »
    Done deal?

    Insurers do not accept Done Deal, Buy & Sell etc as being representations of market value. The assumption (rightly) is that the amounts quoted there are opening gambits and the seller will usually accept a lower figure


  • #27
    pablo128
    Closed Accounts Posts: 6,219 ✭✭✭pablo128


    Henry Ford III wrote: »
    I don't think so. Nobody (in their right mind anyhow) would pay out more than the sum assured.

    It just doesn't make sense, to me at least.

    Put it this way. If you insured, lets say a classic for 5k, regardless what you paid for it. During the year, the value increases to 8k. Someone hits you writing off your car. You want to replace like with like. So do you accept 5k from the other persons insurance, or insist on the 8k it would cost to replace it?


  • #28
    CiniO
    Registered Users, Registered Users 2 Posts: 16,069 ✭✭✭✭CiniO


    Henry Ford III wrote: »
    I don't think so. Nobody (in their right mind anyhow) would pay out more than the sum assured.

    It just doesn't make sense, to me at least.

    But those who will be paying (other party insurer) didn't assure any sum.
    He just has to pay what the car was worth before the crash (minus scrap value).


Advertisement