car insurance question

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nakedmolerat

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Topic # 78813 8-Mar-2011 22:48

i have one question about car insurance, let say i bought brand new car that was retail (RRP) for $100. however, i managed to get some personal discount and the car was sold for $80. when i buy the comprehensive insurance/first party, do i need to put the car value at $80 or at $100?

friend asked me this and i wasnt sure what will be the correct answer.

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Reply # 446822 8-Mar-2011 22:49

replacement Value

richms

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Reply # 446824 8-Mar-2011 23:07

Get $120 worth of insurance in that case...

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scuwp

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Reply # 446845 9-Mar-2011 08:23

Depends on the company I think. The ones I have used work on an "agreed value", that is either the purchase price or the actual value of the car at the time, it has always been my choice provided I can justify the value.

I would get the insurance for the normal replacement cost (RRP)

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nakedmolerat

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Reply # 446846 9-Mar-2011 08:25

richms: Get $120 worth of insurance in that case...

reason for this?

scuwp: Depends on the company I think. The ones I have used work on an "agreed value", that is either the purchase price or the actual value of the car at the time, it has always been my choice provided I can justify the value.

I would get the insurance for the normal replacement cost (RRP)

thanks.

kingjj

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Reply # 446853 9-Mar-2011 09:05

nakedmolerat:
richms: Get $120 worth of insurance in that case...

reason for this?

Cover your excess? My Car's insured for purchased price + cost of excess. Not my idea, insurance salesman I dealt with recommend it.

heavenlywild

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Reply # 446855 9-Mar-2011 09:08

I would quote $100. It's the replacement value. You may pay slightly more in your premiums - it's well worth it though!

Cyris

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Reply # 446907 9-Mar-2011 12:11

As old as I am, the car insurance is on my dads name, full insurance covered for much cheaper.

Got my Lancer from a friend for a very good price of $1000 and it's insured for $3000, so technically if I write off my car, I could get a better one.

joff_nz

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Reply # 446909 9-Mar-2011 12:14

As long as it is an agreed value of $3000, not market value.

As for brand new cars. some insurers offer replacement with a new unit within x-timeframe. so if you bought a 2010 camry for $80k (rrp $100k) and wrote it off this year, you'd get a 2011 camry be it $80, $100, or $150k. Chances are obviously it'd be a pretty similar price to original rrp.

Bee

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Reply # 446912 9-Mar-2011 12:29

go with $100 or $120 yes.

On one of my cars I made the mistake of telling the insurance company that I got a car for $50 but its worth $100 - they insured it for $50.
I wont make that mistake again.

the strange thing is that they never bother to find out what its really worth... what if its actually worth $40???
Ive never made a claim so perhaps thats when they think about that?

Bung

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Reply # 446913 9-Mar-2011 12:31

Vero ask for both purchase price and market value.

6FIEND

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Reply # 446916 9-Mar-2011 12:34

Cyris: As old as I am, the car insurance is on my dads name, full insurance covered for much cheaper.

Got my Lancer from a friend for a very good price of $1000 and it's insured for $3000, so technically if I write off my car, I could get a better one.

Bear in mind that what you're doing is fraudulent. In the event of an accident, if your insurance company gets wind of the fact that you were the primary user of the vehicle (and not your father) then they would be entirely within their rights to decline your claim.

Not judging... Just sayin is all

jbard

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Reply # 446917 9-Mar-2011 12:37

6FIEND:
Cyris: As old as I am, the car insurance is on my dads name, full insurance covered for much cheaper.

Got my Lancer from a friend for a very good price of $1000 and it's insured for $3000, so technically if I write off my car, I could get a better one.

Bear in mind that what you're doing is fraudulent. In the event of an accident, if your insurance company gets wind of the fact that you were the primary user of the vehicle (and not your father) then they would be entirely within their rights to decline your claim.

Not judging... Just sayin is all

This has happened to two people i know. It's actually pretty common and people think they are being really clever fooling the system when all you are actually doing is throwing away money.

They have some very clever techniques to check if you where the owner or not - things like checking who paid for wof/rego's - whos card has paid for petrol and other things as well.

If you are the owner and say your not i can guarantee they will find out if you crash.

Cyris

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Reply # 446919 9-Mar-2011 12:39

6FIEND:
Cyris: As old as I am, the car insurance is on my dads name, full insurance covered for much cheaper.

Got my Lancer from a friend for a very good price of $1000 and it's insured for $3000, so technically if I write off my car, I could get a better one.

Bear in mind that what you're doing is fraudulent. In the event of an accident, if your insurance company gets wind of the fact that you were the primary user of the vehicle (and not your father) then they would be entirely within their rights to decline your claim.

Not judging... Just sayin is all

Oh we made sure of that, There was an option to add a secondary driver to the Insurance. It's perfectly legal =)

Edit - PLUS my dad and I have the exact same first and last names.

jbard

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Reply # 446924 9-Mar-2011 12:41

Cyris:
6FIEND:
Cyris: As old as I am, the car insurance is on my dads name, full insurance covered for much cheaper.

Got my Lancer from a friend for a very good price of $1000 and it's insured for $3000, so technically if I write off my car, I could get a better one.

Bear in mind that what you're doing is fraudulent. In the event of an accident, if your insurance company gets wind of the fact that you were the primary user of the vehicle (and not your father) then they would be entirely within their rights to decline your claim.

Not judging... Just sayin is all

Oh we made sure of that, There was an option to add a secondary driver to the Insurance. It's perfectly legal =)

No it's not, if you read your T & C's you will see that a driver should not be paying for WOF/Rego/Maintance - i assume you are paying for these which means you are the owner.

IANAL but IMO you would not be insured.

Regs

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Reply # 447025 9-Mar-2011 17:45

Cyris:
6FIEND:
Cyris: As old as I am, the car insurance is on my dads name, full insurance covered for much cheaper.

Got my Lancer from a friend for a very good price of $1000 and it's insured for $3000, so technically if I write off my car, I could get a better one.

Bear in mind that what you're doing is fraudulent. In the event of an accident, if your insurance company gets wind of the fact that you were the primary user of the vehicle (and not your father) then they would be entirely within their rights to decline your claim.

Not judging... Just sayin is all

Oh we made sure of that, There was an option to add a secondary driver to the Insurance. It's perfectly legal =)

Edit - PLUS my dad and I have the exact same first and last names.

i think you'll find that a "secondary" driver has terms that describe how often they drive the car. If you drive it more than x% of the time, you will find that you will need to be the primary on the insurance and you may get denied if you try and make a claim....

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