Insurance 2010

[Pharkus]

Serached the forums for a post on this and couldn't find anything recent so I am starting this thread.

Just got a quote for RACV - R32 5 door, agreed value $78,030, excess $1,000, annual premium about $1,400. 30 yrs Rating 1. Discount for Bronze and no multi policy discount.

Post up if you have anything similar or better or a way to grind this down a bit. Suppose I could lower the agreed value, but I want to be fully covered in the event of a write off to buy something that is similar to the R32.

 

[DRMAT]

Agreed value is your first problem.... why are you insuring it for $78k?! Thats $20k more than the most expensive driveaway price on 2009 demo models on carsales with only 50kms on them. Make your agreed value something more realistic... redbook puts 2009 models value at under $50k for a start, so removing $20-30k from your value will knock quite a bit off your premium right away. You'll probably find that if you read your fine print that they wouldn't pay that price if you did write it off anyway when you can get a brand new one for considerably less, let alone something in comparable condition. If you're concerned with replacing your new car if its written off, RACV do new for old replacement on cars under two years old and will put you in the same model and equipment level car.... but you don't need to have your insurance value ridiculously high for this, they do it automatically.

 

[Big Yellow]

RACV $1200 with windscreen cover and agreed value $50k on finance
24yo Rating 1 for life.

 

[HowieR32]

29 years old, Rating 1 with car garaged in Sydney, Maroubra.

My R32 is $2,800 with NRMA insured as a company car. Would have been $2,000 as private. I hate Sydney insurance rates.

My 911 is $3,450 under the same circumstances as above. With Porsche insurance underwritten by VERO.

My god. My yearly bill is more than $6,000 combined!

 

[Pharkus]

The high agree value will mean that I should be able to get something similar in the event of a write off. I have confirmed with RACV that should this occur it will be the payment of the cash amount, otherwise I agree that there is no use in asking for such a high agreed value. I asked them what the maximum was, they gave me $78k, for only an increase of $100 on the premium, which I was able to offset with a higher excess. I guess that's why they call it insurance.

I think that my car is may be more than 2 years old now so the old for new replacement will not satisfy what I want out of my insurance. Allianz does old for new up to 4 years, but if you can find me an R32 brand new in UG with sunroof and manual let me know.

So long as my understanding is correct that in the event of a write off I will be paid out the agreed value (keeping in mind I would like to keep this car for a long time) then I am happy with the quote as it stands. I will probably reconsider as the car gets older, but realistically another $100 here or there per year isn't enough to turn the tide for me. $400 more than BY's quote over say 10 years, if I have an accident in that time I think I will be ahead and the insurance has been worth it (touch wood nothing happens).

I've spent too much time:
-Parking away from ppl in shopping centres
-Washing/waxing

not to insure it for what I think its worth to me and what the insurance company is willing to insure me for. I just wanted to see the sort of premium I am paying for that insurance.


From the PDS (RACV):

"we will decide whether to:
repair your vehicle, or
pay you the cost of repairing your vehicle,
or
pay you the agreed or market value,
depending on the cover listed on your
current Certificate of Insurance less any
applicable deductions (see page 31 for
details)."

And an example of what happens on total loss, from p44 of the PDS:

2 Comprehensive Insurance –
Total loss – page 7

We decide that your vehicle is a total loss.
The agreed value of the vehicle listed on
the Certificate of Insurance is $14,200.

The vehicle was towed from scene of the
accident to our assessing centre. The towing
company invoiced you for $350.

There is an excess of $500 and you can
get a registration and compulsory third party
insurance refund of $250. You are not
registered for GST.
we pay you $13,450
($14,200 - $500 - $250)
we will pay the towing company $350

Therefore, by my calculations in the event that my car is a total write off: I get $78,030 less $1,00 excess less towing of $350 (for example), equating to $76,680 that I can then put to use in obtaining another car in cash.

Having said all that, I hope to never have to do so.

 

[G-rig]

My car is insured for a similar agreed value, but unless you got 20-30k of mods (which i do) don't see how they would agree on that, as the market value has dropped on most cars plus the best driveaway price was about 54k (5dr R32 DSG). Excess is around $1200 (but would have been 200$ less if it wasn't registered under an ABN).

When it comes time to renew it also gets harder to justify the same agreed value, not being new anymore.

I've often wondered if new for old overrides your (higher) agreed value as well.

P.s. I've noticed the NRMA campaign if you have a car less than a few years old you get 15% off- anyone know if it applies for existing customers?

 

[Pharkus]

My car is insured for a similar agreed value, but unless you got 20-30k of mods (which i do) don't see how they would agree on that, as the market value has dropped on most cars plus the best driveaway price was about 54k (5dr R32 DSG). Excess is around $1200 (but would have been 200$ less if it wasn't registered under an ABN).

When it comes time to renew it also gets harder to justify the same agreed value, not being new anymore.

I've often wondered if new for old overrides your (higher) agreed value as well.

P.s. I've noticed the NRMA campaign if you have a car less than a few years old you get 15% off- anyone know if it applies for existing customers?

I don't have any mods on the car and would notify them if I did. However, a change to the way they are disclosed when they asked me the question I noticed that my sunroof wasn't included as a mod.

RACV advised that these are no longer reflected in the policy document. I then asked "well how do you then record what mods are done?" to which the response was that this is done upon the assessment on the claim! and they decide at that point.

I would have thought that this would have to be disclosed on your policy as a matter of record, I mean after an accident if it'd bad enough what exactly are they going to find in the wreck, and even if they do get to inspect if after what are the chances that the inspector would know the difference between a K04 or stock turbo on a GTi? Luckily in my case this is not an issue.

As for the issue about the price, I can see where you are coming from, but the PDS says that the payout amount is the agreed value per the insurance policy. The increased premium reflects the increased value for which you are insuring for and I think so long as the value is within the insurance company's allowable amount then its ok. In my case they've agreed to update my policy to state the $78,030 and as soon as I see this in the updated policy I will be making payment.

I've been paying this for every insurance renewal since I joined and have only ever made one minor claim when a cyclist clipped my side view mirror:mad0259:

The way that I interpret the PDS is that if you have new for old in the event of a total loss you get the choice of either a new car or the agreed value. Therefore you would probably go the higher agreed value as you will still be able to obtain a replacement car and might even have spare cash after.

 

[DRMAT]

Can't recall where but i'm sure i've heard of insurance companies wriggling out of cases where the insured value is considerably higher than the actual vehicle worth without justification. Might be fine but i struggle to see them paying out $40k more than your car is worth in the event of an accident without arguement or why they'd go that high to begin with?

However if it is correct i'll insure my GTI for $80k, write it off then go buy a S3 and spend the change on mods!

 

[Maverick]

Can't recall where but i'm sure i've heard of insurance companies wriggling out of cases where the insured value is considerably higher than the actual vehicle worth without justification. Might be fine but i struggle to see them paying out $40k more than your car is worth in the event of an accident without arguement or why they'd go that high to begin with?

However if it is correct i'll insure my GTI for $80k, write it off then go buy a S3 and spend the change on mods!

The insurance companies have a range that you can insure your car for which is why it's different to people over insuring their homes.

For an 08 GTI without mods or any extras with my insurance company was around $32k to $39k and than you list any other mods on top like satnav etc. You can't pick a figure of $80k as it's outside their range for the car but you can add on another $30K in extra if you wanted to.

When I added the 18" R32 wheels to the car I rang up expecting to pay a little extra as the difference from VW is $200 per wheel ($100 for the tyre and $100 for the rim) so the insurance company were exposed for only an additional $800 however I had to insure for the full value of the wheels (~$5000) and was one of the reasons why I ended up going agreed value.

The agreed value will drop each year in line with where you sit in the agreed value band from the previous year. The mods etc don't drop in price.

Sure beats getting screwed based on some assessors idea of what your car is worth after it's been written off.

 

[DRMAT]

I'm just staggered how the bracket for a 2+year old R32 extends to $78k. Sure a range will allow for vehicles of better condition, less kms etc but we're talking twice the value of the car!

 

[G-rig]

Well not everyone got them for 50's k during the runouts and fully spec'd ones on rrp could be in the 70k's.

Ps hope I don't write mine off..

 

[adamtassell]

Just a thought....In the event that your car is damaged, and there is masive, but repairable damage. If your car is insured for a realistic 50k then it may be a write off. If it is insured for nearly 80k then it is less likely that they will pay out, instead preferring to repair the car. In the event of a major, but repairable, accident I would rather my car be written off than repaired, even if it is for less than replacement. But that is just me.

 

[Pharkus]

I'm just staggered how the bracket for a 2+year old R32 extends to $78k. Sure a range will allow for vehicles of better condition, less kms etc but we're talking twice the value of the car!

Yeah, I was surprised as well. I asked what the maximum agreed value was and was advised the $78k figure :eyebulge: It's their figure, not mine so :iono:

As said before, you will not be able to go beyond the upper limits they have specified and calculated in house.

With respect to getting such a high value and then crashing the car, I will NOT risk that as my own well being, that of my family and the general public are much more important than rorting the system. Additionally, I would think that something like that would raise your premiums in the long term with such a big claim and that additional cost will far outweigh any gains you think you may have.

I will confirm though if the total loss is calculated with respect to the payout figure and a percentage of that as estimated repair costs. Good point.

 

[isaw]

My insurance is coming up, and I'd like to get it renewed.
Currently with AAMI for agreed value of around 40k. mods listed are suspension.
I pay around $750/yr, I doubt there is anyone better on price, but is there someone similar that will do choice of repairer for say under $1000?

 

[G-rig]

Yeah, I was surprised as well. I asked what the maximum agreed value was and was advised the $78k figure :eyebulge: It's their figure, not mine so :iono:

Don't see the point of going agreed that high on a stock car, and apmitchell raised a good point, plus they may reject it at time of claim. You may have to justify why its worth that much more than other similar ones too i assume?

apmitchell: I thought once you got a certain value of mods, agreed value would be the way to go (esp your mods). Otherwise would you be happy with 45k if it was written off? Just on that i assume with any forced induction conversions the only choice would be Shannons?

Cheers,