Query re car value???

Endaaaagh

Can someone from Liberty please explain the following to me.

I’ve had a motor policy with you for the last 5 years. I’ve recently received my renewal quote, so an experiment I decided to log onto your site and adjust my policy to see if I could make any savings. Why is it, if I reduce the value of my car to €1000, the cost of my policy increases by approx €200 and if I increase the value of my car to €5000, the cost of the policy decreases by approx. €200??? In both cases, all other details remained the same (make/model/year engine size of the car & driver details). Why does the value of the car affect the price of the policy so much? I really don’t understand this??? As my policy is only for 3^rd party fire and theft, surely the lower value means if I were to claim for fire or theft, the claim would be lower. Why do you penalize people depending on the value of  the car??? This doesn’t make sense.

TallGlass

Endaaaagh wrote: »

Can someone from Liberty please explain the following to me.

I’ve had a motor policy with you for the last 5 years. I’ve recently received my renewal quote, so an experiment I decided to log onto your site and adjust my policy to see if I could make any savings. Why is it, if I reduce the value of my car to €1000, the cost of my policy increases by approx €200 and if I increase the value of my car to €5000, the cost of the policy decreases by approx. €200??? In both cases, all other details remained the same (make/model/year engine size of the car & driver details). Why does the value of the car affect the price of the policy so much? I really don’t understand this??? As my policy is only for 3^rd party fire and theft, surely the lower value means if I were to claim for fire or theft, the claim would be lower. Why do you penalize people depending on the value of  the car??? This doesn’t make sense.

To be honest with you, it's something I never got. You could put in 1€ or 1 million in there and they will only pay out what they think the car is worth, so it's pointless them even asking the value of the car.

Trampas

If your car was wrote off the value of your car is what liberty decide and not what you valued it at.

Endaaaagh

Trampas wrote: »

If your car was wrote off the value of your car is what liberty decide and not what you valued it at.

I understand that...so I'm trying to figure out why the stated value of the car affects the price of the policy so much. It doesn't make sense!

Notch000

there assuming if your car is at the bottom of the ladder value , you associated with a demographic that have fradulent claims for fun

TallGlass

Endaaaagh wrote: »

Trampas wrote: »

If your car was wrote off the value of your car is what liberty decide and not what you valued it at.

I understand that...so I'm trying to figure out why the stated value of the car affects the price of the policy so much. It doesn't make sense!

It feeds into there online algorithm for giving out a quote, put simply, the more variables you add into this algorithm the more ways an insurance company has to screw you over. 

I can't get my head around why the policy would be more expensive if the car value is less and four times the value you get a lower quote. Either someone is shockingly bad at maths or which is more than likely the case is that alot of people under value there cars thinking they'll get a lower quote, so to screw them over they jack up the prices on the low end car values. 

I wonder if I put in 50,000 and crashed my car, but they paid me 5,000, if I brought them to court would I get my 50,000? After all it is on my policy.

com1

TallGlass wrote: »

Endaaaagh wrote: »

Can someone from Liberty please explain the following to me.

I’ve had a motor policy with you for the last 5 years. I’ve recently received my renewal quote, so an experiment I decided to log onto your site and adjust my policy to see if I could make any savings. Why is it, if I reduce the value of my car to €1000, the cost of my policy increases by approx €200 and if I increase the value of my car to €5000, the cost of the policy decreases by approx. €200??? In both cases, all other details remained the same (make/model/year engine size of the car & driver details). Why does the value of the car affect the price of the policy so much? I really don’t understand this??? As my policy is only for 3^rd party fire and theft, surely the lower value means if I were to claim for fire or theft, the claim would be lower. Why do you penalize people depending on the value of  the car??? This doesn’t make sense.

To be honest with you, it's something I never got. You could put in 1€ or 1 million in there and they will only pay out what they think the car is worth, so it's pointless them even asking the value of the car.

I would be careful undervaluing a car - the insurance company will pay market value (after negotiation) or the value you stated whichever is less.  You value your car at €1 then if you have a claim that is all you will get.

I have had the discussion regarding why I have to state the value and have gotten responses from numerous ins cos. which essentially boils down to ..."Computer says no!...!"
 

MojoMaker

How about we sit back and let Liberty respond honestly and concisely and only consider escalating it if you get a brush-off or an evasive response?

It's a fair question I think, let's give them a fair chance to reply.

Endaaaagh

MojoMaker wrote: »

How about we sit back and let Liberty respond honestly and concisely and only consider escalating it if you get a brush-off or an evasive response?

It's a fair question I think, let's give them a fair chance to reply.

That's what I'm patiently waiting for

Liberty Insurance: Lisa K

Hi Endaaaagh, could you PM me your policy number so we can review this please. Thanks Lisa