So, given a set premium level, do you think one would get a higher payout under market or agreed value?
So many companies offer as default, market value. Me thinks it’s likely to be lower than a agreed value, but I haven’t got any evidence. Any opinions?
I think it also depends on the car you're insuring. If it's a newer, more expensive car, chances are it will depreciate more over time wise compared to an older car. In that case, it would probably make more sense to insure it under agreed value.
Go for agreed value otherwise we'll see another thread later on having a whinge about the insurance company only paying such and such and it's not enough to replace the car.
So, given a set premium level
Usually premiums for 'agreed value' insurance policies will be higher (depending on what you set as agreed value, of course).
The highest possible agreed value is the best, even if it means the premium is slightly higher.
There's always additional costs when getting a replacement car such as accessories, window tinting, etc.
Read the fine print.
Agreed value is not always the amount they will pay in the event of a claim.
In a lot of cases terms like this exist: (paraphrasing)
“We will pay up to the agree value unless the agreed value is excessive in relation to the actual replacement cost of the vehicle”
My insurer tried to pull this on me last year. They essentially tried to pay less l, it was still more than market value but was not what we “agreed”
I ended up having to go to the ombudsman to get it paid and they paid but only to make me go away. The terms in the policy were clear in giving them an out to pay less.
That sucks.
Wow, if that’s the case they shouldn’t have the right to charge the higher premiums that comes along with the higher agreed value. Seems like your insurance companies wants it both ways. Would you mind naming?
That was RACV
(Same company that is sold by NRMA In other states)
Since that issue I have always checked and in the terms of most insurers I found the same issue.
Coles
Woolworths
AAMI
were three I didn’t go with cause they had same clause in their policies.
I am now with CGU who don’t have that clause in regards to agreed value.
Poor form !
Those kinds of clauses are put in mostly because they hope people will see it and just give up. Legally, the most they can do is to prevent extreme abuses of "agreed value" (e.g. you've left the car outside on the beach for a few months so it's basically a rust-bucket, and then it gets into an accident, etc).
Wow, that's sneaky AF.
Thanks for all the people saying agreed value has higher premiums, I was wondering at a given premium level. So if I was quoted 600 for market value, but I could, select an agreed value that sets it to 600.
Would I likely get a lower agreed value than market? Hoping for someone who might work in the industry to shed some light.
Why don't you just try it and see what the premiums are?
Some allow you to change the excess too, so that affects the premium also…although I'm assuming for your comparison you would make them the same.
I’ve done so, so a Honda Accord lux 4 speed auto 2010 is around $650 for 10k agreed or I can go market value. Though I wouldn’t really know how they calculate market value, and I’m doubtful going on carsales is accurate.
I'd do agreed, I got burnt by market value. They compared cars on sale on Gumtree in other states to compare how much they should pay me out…
Why didn't you appeal or escalate that? I did with my market value payout and got it raised a bit.
I haggled with them and got 2K more.
Was between a rock and a hard place. Had car stolen two weeks before I was supposed to move to another state for a new job (was going to road trip up).
When I used work in the industry, the Market Value used to be based on the redbook.com.au value. There's a value for Private sales and a value Dealer sales.
If you buy a brand new car from dealership and first owner, go with market value as most insurance will replace the car if it’s within 2 years of purchase.
Otherwise go with agree value which you pay most. Still worth the cost
Try different agreed values on their website until you are happy with the agreed value / premium combination. In my case I tried and found agreed value of $X,000 and $X,990 has the same premium. That's about $1,000 more with the same cost if the car get written off.
I had a interestinf conv eith my insurer when trying to do agreed value. Recently
We have a car thats about 10yrs old. But only 50k
Other examples were about 17k second hand with 100k.
Insurance company say market value 9k
Max agreed value was 15k.
Market is generally lower, which is why you pay more for agreed value (which you typically set higher than market)?