100 series landcruiser

Submitted: Friday, Mar 01, 2013 at 18:28
ThreadID: 100837 Views:2431 Replies:4 FollowUps:4
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My 100series landcruiser is now 17 yrs old and is fitted with many off road accessory's.
Recently my insurance renewal came in , much to my surprise the off road options were worth more than the amount my insurance company agreed value. When i went looking at replacement costs ,I found I could not even replace a basic landcruiser for the agreed value. Am I on my own or have others found the same problem? How have others got around this problem. At the moment I have taken out third-party insurance on advice . It appears that under comprehensive insurance your payout is only agreed value and you cannot remove or buy wreck to remove options. Is the advice I have been given by others correct?
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Reply By: Member - Wamuranman - Friday, Mar 01, 2013 at 19:59

Friday, Mar 01, 2013 at 19:59
Are you sure its 17 years old?

AnswerID: 505847

Follow Up By: Member - Phil H (NSW) - Friday, Mar 01, 2013 at 20:07

Friday, Mar 01, 2013 at 20:07
Opps try 15 yrs .It is one of the first 100 series.
FollowupID: 782751

Reply By: baz&pud (tassie) - Friday, Mar 01, 2013 at 20:49

Friday, Mar 01, 2013 at 20:49
G'day Phil,
Most insurance companies insure for Market Value, in other words the value of YOUR vehicle at the time of the loss (not the average value of the model).
Some Companies insure for an agreed value, which usually means the vehicle has to be valued by an "expert" in the field, loss assessor, car valuer etc.

In relation to the accessories that are not standard to the vehicle, they have to be separately mentioned for there value, but in the event of a total loss, you would get the depreciated value of those items, i have never heard of an insurance company covering a motor vehicle for it's replacement cost, having said that if the vehicle is written off within the first two years (i think it's two) of first rego then they will replace with a new one.

Here in Tassie, if the vehicle is written off it goes up for tender, in other words you can get it back, it's a matter of discussing it with your insurer, and offering a few dollars more than the highest bidder.
Hope this helps.
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AnswerID: 505853

Follow Up By: Member - Phil H (NSW) - Saturday, Mar 02, 2013 at 09:08

Saturday, Mar 02, 2013 at 09:08
My reply dissapeared into cyba space. (more than likley my computer skills-lack thereof)
Have been insuring cars over 50 years and find there is no loyalty from the various companies. Gone are the days you could have your car asscessed by an "expert". It is 100 series aftermarket turbo diesel
170kms in excellent condt. Best agreed value quoted (sight unseen) $19k value of accessories $16k. Leaves $3k balance to purchase and set up a far inferior vehicle. Looking around there are very few that I would bother with. They are basically stk std with 300km + .
So you can see my predicament.
FollowupID: 782782

Reply By: Kimba10 - Friday, Mar 01, 2013 at 22:51

Friday, Mar 01, 2013 at 22:51
Ask them to put it up again. Depends on your insurance company. Mine come in well under what it would cost me to replace it with the exact same vehicle so I rang them up told them it had low klms etc etc and is now back upto the value to which it would cost me if it was written off. And yes what you have been told is correct. If you have comprehensive insurance and you total it, you will receive the amount that is stated on your policy (agreed value) and they take the vehicle BUT you may remove the extras like eg, UHF, roof rack/s, cargo barrier, GPS, driving light etc that is in the vehicle provided its not stated on your policy, in other words you didn't have those items covered on your policy. If they are covered on the policy then they belong to the insurance company if the vehicle is written off. 1/3 party is fine and will cover you against hitting some thing else, BUT if you write the vehicle off yourself you get nothing from the insurance company but you get to keep your vehicle, but you will still pay an excess if the other vehicle/property is damaged, problem is now is if some one else hits you and they have no insurance what so ever then your screwed because even if you take to court you may get $10 a week for the next 20 years, not going to help you out. WARNING presume you are aware again repeating my self but with 1/3 party you have taken out ""YOU ARE NOT COVERED FOR THEFT OR IF YOU WIRTE YOUR CRUISER OFF"" Im not sure what model cruiser you have but even if its petrol with high klms it would still be worth 15k plus, that's a lot of money to lose. NRMA don't require you to list every option you have fitted. I use to have everything listed but now they don't need it. In saying that Im a bit wary of that. If my prado is stolen are they going to just agree with me that I have a $500 uhf fitted, ?? or are they going to replace my KM2 BFG muddies again ?? are they going to replace my HID driving light with $600 light again ?? I have no idea so I have taken pictures of all my extras, filed dated etc just incase. All these things use to be written on my policy. My weaco is covered under my contents insurance for my house. NRMA wouldn't cover it. What ever you do read the fine print and if you don't under stand it get some one that does to read it to you. I must admit I have always been with NRMA for over 25 years and have made a few claims and never had any issues (must admit not at fault though)................
AnswerID: 505865

Follow Up By: Member - Phil H (NSW) - Saturday, Mar 02, 2013 at 09:26

Saturday, Mar 02, 2013 at 09:26
Basically I have been through most of the points with 5 major insurance companies (including the one you mentiond). Yes I fully understand 3rd party insurance. Reasoning is vehicle garaged until we go on say 4-6 week trip. Only damage has been log snapping and damaging door. I do 90% driving wife 10% both have no demerit points etc . (boring isn't it) As I said in my reply to Baz after the insurance debarkle I have been keeping an eye on similar vehicle. Very very few around anywhere near the condition of my girl. I goover some pretty rough tracks, but treat them with respect and always check vehicle out at thwe end of each day. Again thank you for your input. Guess insurance companies don't care about the grey nomads.
FollowupID: 782783

Reply By: Member - Bruce C (NSW) - Saturday, Mar 02, 2013 at 10:20

Saturday, Mar 02, 2013 at 10:20
Hi Phil,
I had this very problem a few years ago when renewing my policy and failed to pick up the insurance companies depreciated value on an agreed value policy. Vehicle was written off as a result of an accident and I was shocked to learn the hard way of the reduced value.

I was lucky to get a replacement for the money but just made it. With this lesson learnt I insured the replacement for what I considered was a reasonable replacement value. Guess what?, next year they tried the same again but I went back to them and told them I had no hope of replacing the vehicle for that kind of money and they agreed to insure it for the figure I requested, no argument but I had to pay extra of course which I was happy to do.

You can set the value with many companies, provided it is a reasonable market value and not way over the top.

The lesson I learnt was never to pay a policy without checking what they have set as the agreed value, and be prepared to argue your case for an increase if you think it is warranted.

Now the most significant thing I learned from this by talking to repairers was that insurance companies will only effect repairs to 75% of the insured value before writing the vehicle off. They recover the other 25% from the salvage.

In the event of a write off claim they have paid you 100% on the policy payout but recovered 25% from salvage sale and the policy has therefore only cost them 75% on payout whereas if they repaired the vehicle it cost them more, up to 100% of the policy value. So it is a cost saving measure for them and to further downgrade your vehicles policy value with a view to a possible claim means it diminishes the possible payout value even further.

I don’t blame them, they are in business, and nobody is in business to go broke. But it helps to know the lay of the land when negotiating a policy renewal.

Cheers, Bruce.
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restless and lost on a track that I know. HL.

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AnswerID: 505881

Follow Up By: Member - Phil H (NSW) - Saturday, Mar 02, 2013 at 14:44

Saturday, Mar 02, 2013 at 14:44
You make the very point that I'm concerned about ,Insurance companies are looking for at least 25% of the insured value from salvage when vehicle is written off. As you can see they would in fact get much more. e.g. say damage was quoted at say $15k to repair,vehicle is then written off , they salvage for $7k , pay me out $19k -they put their hand in their pocket for $16k. Meanwhile I need to spend $30k std car + mods that went with write off $16k (total of $46k for what I have now,but still in nowhere the condition of my girl) Means I will need to contribute $27k. Does that make sense, or more to the point . How FAIR are insurance companies?? If I was a bad risk in any way I would not complain, but in my 50yrs of insurance my claims have been absolutely negligible. From the above do you understand my resentment and reasoning for opting for 3rd party only.
Should I have an at fault accident up to $27k I'm still in front, provided accident is not between $1.5k-$14.9k in which case for the first year comprehensive insurance would have been O.K.
Its sure food for thought. I have battled with this for some time and it is the first time in 51 years I have not had comprehenive insurance for a vehicle.
FollowupID: 782798

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