Insurance help

Jonny1gixer

Hi all
I had a car accident and my car written off. But I undervalued my car when insuring it. I insured It for about 2 k and the insurance company has called me today to say the pre accident value is 3k. What should I expect to get. I've never had this happen before?

BreadnBuddha

Jonny1gixer wrote: »

Hi all
I had a car accident and my car written off. But I undervalued my car when insuring it. I insured It for about 2 k and the insurance company has called me today to say the pre accident value is 3k. What should I expect to get. I've never had this happen before?

You'll get 2/3rd the value based on those figures, minus the excess as far as I can tell if you're claiming on your own insurance. No more anyway than the insured value.

If it's someone elses insurance (and liability), you should get actual pre-accident market value.

Jonny1gixer

That's something to go on. I'm claiming off my own insurance. I didn't think my car was worth that much hence I only valued it at 2k

coylemj

Jonny1gixer wrote: »

That's something to go on. I'm claiming off my own insurance. I didn't think my car was worth that much hence I only valued it at 2k

Well if it's a total write-off then you will get the 2K. Technically you will be getting 2/3 of their valuation of 3K as BreadnBuddha said above but obviously it's the same thing.

If it wasn't a complete write-off, they would calculate the cost of repair and pay you 2/3.

If you had over-insured it you would get the cost of the repair and for a write-off they would pay you their valuation of 3K regardless of what value you put on it.

Jonny1gixer

They said it would be beyond economic repair hence the reason for writing it off. I think I'll be over insuring a car from now on

EagererBeaver

You'll get the insured 2k, less any sourceable scrappage value. They may tell you Johnny X out in naas will give you 300 for the scrappage of car, so they'll write you cheque for 1700 and you take up the scrappage offer if you want. Any excesses etc will also be deducted.

Jonny1gixer

If I get 1700 or 2k I'll be happy. I just want to get another car sorted do I can get to work and get my kid to school

coylemj

Jonny1gixer wrote: »

They said it would be beyond economic repair hence the reason for writing it off. I think I'll be over insuring a car from now on

The problem with over-insuring is that you will be paying a higher premium for no benefit. Try to state a realistic street value and change it every year when renewing.

Jonny1gixer

That makes sense I didn't think of it like that

JIdontknow

I could be wrong and am open to correction but insurance companies usually go by the "book value" of the car, and not the stated value on your insurance. I know that insurance companies when quoting your renewal will say oh let's bring down the value slightly and see if it makes much difference (it doesn't usually). They'll also take into account the mileage, etc, higher mileage decreases the book value.

EagererBeaver

JIdontknow wrote: »

I could be wrong and am open to correction but insurance companies usually go by the "book value" of the car, and not the stated value on your insurance. I know that insurance companies when quoting your renewal will say oh let's bring down the value slightly and see if it makes much difference (it doesn't usually). They'll also take into account the mileage, etc, higher mileage decreases the book value.

Generally, if there's a loss, a claims adjuster will look to find similar vehicles to the one involved - make, model, year, spec etc and average the cost to come up with a figure foot the pre-accident value. This can be less than the sum insured on the policy, but they'll only pay out to the pre-accident value.

Jonny1gixer

That has put my mind at ease. I don't think I've been ever asked when renewing my insurance to drop the value of it.

Liam McPoyle

Because the values were so low - €2000 & €3000 then its highly unlikely that the value was used as a rating factor.

On that basis I'd be surprised if your insurer didn't pay you the market value less the excess or offer to replace the car with a like for like model.

Jonny1gixer

If they replaced it I'd be over the moon save me trying to look for one lol

Liam McPoyle

Jonny1gixer wrote: »

If they replaced it I'd be over the moon save me trying to look for one lol

Then I'd contact them and tell them exactly that.

ATMatm

coylemj wrote: »

The problem with over-insuring is that you will be paying a higher premium for no benefit. Try to state a realistic street value and change it every year when renewing.

Lads. Try this out. Go to a broker and value a car at 5000. Then do it at 10000. In the majority of cases the higher value on the car gives the cheaper premium.

Source: Work at a brokers.