Insurance Agreed Value?

[NT5224]

Hi team.

I’m interested with how people approach insurance and in particular the agreed value of their Land Rovers…

I notice my insurer is trying to reduce the agreed price of my 130 on my policy.

Can I ask what kind of agreed values people ask for their Land Rovers? My 130 currently insured to over $70,000.

Is this unreasonable? Should I consider reducing the agreed value?

Thoughts and other’s views appreciated.

Alan

[austastar]

Hi,
Your premium is based on the agreed value, to attempt to change the value after accepting the premium would be immoral and probably an illegal breach of contract.

Cheers

[austastar]

Hi,
Oops, miss read the question. I would check the car sales for expected sales price.
Cheers

[NT5224]

Yes I have looked at online sales prices and there is a crazy spread from upwards of $100000 to more under $50,000 for older vehicles.

My insurance company seem to think the agreed value of a LandRover should decrease every year, when (I think), the rarer they get the greater the demand? They aren’t building any more and LandRovers are highly desired.

Do people on here depreciate the agreed insurance value of their LandRovers annually?

Cheers

Alan

[Tombie]

The last 12-18 months has seen a return closer to normal pricing.

They are not in demand at all, those exhorbitant priced listings arent selling.

[shack]

Whilst not addressing the insurance question, I'd suggest 45-55k would buy most old school defenders in Australia.

There are always exceptions of course for particular models and extremely low km.

[scarry]

Tombie is on the mark,my youngest son sold his 110 Puma for ridiculous money when they were in demand,around 2019/20 from memory.

They are now selling for at least 25 to 30% less.

He picked up an LC76 to replace it at the time,it is now worth quite a bit more than he paid for it.

Just luck,i don't think i have ever made much money on vehicles,ever.[bigsad]

[RANDLOVER]

A lot probably depends on what extras it has, such as bullbar, roof rack, winch, dual battery system, etc.

Also depends on who owned it like King Charles' swb for instance, sold for
67 000 GBP with fees and taxes. ....King Charles' Land Rover Defender sells for estimate-busting price at auction | This is Money (https://www.thisismoney.co.uk/money/cars/article-14533855/King-Charles-Land-Rover-Defender-sold-auction-60k.html'dicbo=v2-L6f6sML&ico=outbrain_footer)

[MLD]

i don't understand why people go with agreed value unless the value is so much higher than the going market rate to replace the vehicle. Market value is market value for your vehicle at the time of write off. If if has improvements on it that are notified to the insurer, then they should be taken into account for the payout value. If your car is written off and the insurer offers X as the pay out, collect as much data as you can of the market value of your car on a like for like basis and present that as the fair market value. If the insurer doesn't compromise, sue on the contract. Let the Court decide what is the fair market value. If you data of market value is able to be supported by expert valuation, you will get the money you deserve. I know of a sports car that was written off last month, redbook valued it at 166k, payout was 240k. The 240k was put forward by the loss assessor. There is merit in getting in the ear of the loss assessor rather than leaving it to the insurance company to dictate terms.

[Epic_Dragon]

I always do agreed, market value/red book always well undervalues what the same car can even be bought for, and its especially important now as my cars disability mods exact replacement costs of $30k needs to be covered. I watch it every year when renewal up and if they change the value, i always discuss with them.
I think agreed value is so important for a few reasons :) (i also prefer choice of repairer)

[V8Ian]

Interested article on the news today. Seems three weeks before renewal date is the sweet spot for quotes, with no no rush into signing, 10%+ can be saved.
Market value is what a dealer will pay, not replacement cost.

[MLD]

Market value is what a dealer will pay, not replacement cost.

which dealer price? Trade in, wholesale, or auction? Each are materially different in $ value due to the different value propositions for each.

[gromit]

Market value is what you would pay in the market for a similar vehicle.

Market value vs. agreed value – What’s the difference? | Budget Direct (https://www.budgetdirect.com.au/car-insurance/guides/car-buying/agreed-value-vs-market-value.html)


Colin

[scarry]

One of my brothers has his D1 insured agreed value, $5K.

A year or so ago someone ran into the rear and pushed it into the car in front.
The repair quote was $3K.
He fixed it himself,the insurance company paid the $3K.
It is now insured agreed value at $5K.

Although he didn't need a new front bar,he fixed the old one and gave it a paint,surprisingly ARB had a suitable bar in stock.