Insurance Question... Advice please...

[Jamesy04]

Ok so below i will set up to scenario's of insuring a car, just want to know which is going to happen in each case.

Cheap run around car. cost £550.

1. Fully comp insurance, Insure at market value of £500... Write the car off two months later. The insurance company will pay out say £450-500, yeah?

2. Fully comp insurance, (exactly the same details etc ) except i insure the car at £1000... write the car off two months later. Will the insurance company only pay out the market value of £450-500, or will they pay out say £900 because i insured the car for £1000?

Obviously Option two will have a higher intial purchase price for the insurance, but just wondered wether it would actually guarantee a higher price paid out upon a write off as apose to option one.

Any guidance would be greatly appreciated,

Thankyou

James.

 

[chilleyd]

In my experience, they will not take one bit of notice at what you insure it as, and they will offer you market value. Unless they think you are trying to under insure it and they could use it as an excuse not to pay out.

 

[Carlv8415]

In my experience, they will not take one bit of notice at what you insure it as, and they will offer you market value. Unless they think you are trying to under insure it and they could use it as an excuse not to pay out.

Exactly what he said. I valued my car at £900 but when I crashed it they gave me the market value of £1200. Otherwise people would over value their cars for a higher payout.

 

[rdoxenham]

Yep, if you want an agreed value then make sure it's in writing

 

[icebergclio]

book value pay out unless agreed upon in the insurance papers dude