Overvaluing car on insurance quotes

shietpilot

Hi

Is it perfectly fine to overvalue your car when getting insurance quotes? Bumping my car value up a few thousand makes the quote a lot lower.

From Leaving Cert Business (:D) I recall this is quite legal and in the event of a claim insurance companies will only pay out what the market value is. However if you undervalue it they will pay out less than market value.

Thanks

cplwhisper

If you over-value the car then the company will be suspicious to possible modifications to car...'95startlet worth 4K was 1 heard today, asked if modified or could I see photo...caller hung up !!

shietpilot

cplwhisper wrote: »

If you over-value the car then the company will be suspicious to possible modifications to car...'95startlet worth 4K was 1 heard today, asked if modified or could I see photo...caller hung up !!

2008 Focus here. I don't have modifications so photos are no bother for me

Liam McPoyle

shietpilot wrote: »

Hi

Is it perfectly fine to overvalue your car when getting insurance quotes? Bumping my car value up a few thousand makes the quote a lot lower.

From Leaving Cert Business (:D) I recall this is quite legal and in the event of a claim insurance companies will only pay out what the market value is. However if you undervalue it they will pay out less than market value.

Thanks

Yep, no issue whatsoever for the reasons stated above.

shietpilot

Saul T Nutzz wrote: »

Yep, no issue whatsoever for the reasons stated above.

Cool. I suppose I'm not doing too much harm setting a €6500 car to €8000

cplwhisper

Make sure to read the T&C tab for the ins company.
I know 1-2 companies, that will penalise you at claim stage if you bumped up the value at inception as they think you are 'misrepresenting the risk' that they are writing business for... I have higher than the LC business knowledge

shietpilot

cplwhisper wrote: »

Make sure to read the T&C tab for the ins company.
I know 1-2 companies, that will penalise you at claim stage if you bumped up the value at inception as they think you are 'misrepresenting the risk' that they are writing business for... I have higher than the LC business knowledge

I checked Liberty's T&Cs (read through every single paragraph) and it mentions nothing about evaluation.

I don't see how they can say my evaluation is wrong since they always low-ball the payouts for example.

cplwhisper

You can be asked for proof of purchase and payment to back up the value given by you. !
Have seen it done as when you incept a policy a suitability statement is issued for you to accept that data to be 'honest under good faith' ... Just saying be cautious

cplwhisper

You can be asked for proof of purchase and payment to back up the value given by you. !
Have seen it done as when you incept a policy a suitability statement is issued for you to accept that data to be 'honest under good faith' ... Just saying be cautious

shietpilot

Makes sense but how can you be not honest on an opinionated question deciding how much your car is valued, especially when you hear things like "if you undervalue your car, the insurance company will pay out less than market value". It's only natural to overvalue your car and pay more (but insurance risk calculators are making it less for some strange reasons).

Liam McPoyle

cplwhisper wrote: »

Make sure to read the T&C tab for the ins company.
I know 1-2 companies, that will penalise you at claim stage if you bumped up the value at inception as they think you are 'misrepresenting the risk' that they are writing business for... I have higher than the LC business knowledge

In what way would the penalise someone for that?

Any specimen documents I've seen state that they will pay the replacement cost of the vehicle based on the market value of a like for like model, at the time of the accident.

If someone is dramatically overestimating the value of their car for insurance purposes the only thing that may occur is that they over pay on their insurance.

There is literally no additional risk to an insurer because of a customer doing this.

Under valuing a vehicle certainly as it may mean the risk was outside of acceptance criteria due to its real value but over valuing, really can't see how or why they could or would penalise someone.

coylemj

cplwhisper wrote: »

You can be asked for proof of purchase and payment to back up the value given by you. !

No you won't. Insurance companies don't care about your valuation when it comes to a claim, they will tell you the value based on the year, make and model and that's the end of it. Just because you paid over the odds or stuffed it with go-faster goodies is neither here nor there.

If you overvalue the car when taking out insurance, it will cost you in the form of a higher premium for fully comp. but when it comes to making a claim, it's the street price of your car that they use, not some inflated number you're carrying around in your head.