insurer won't cover full purchase price of vehicle

Submitted: Monday, Jun 16, 2008 at 22:10
ThreadID: 58869 Views:1665 Replies:8 FollowUps:12
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I'm looking to buy a 14 year old 4WD for about $11,000 and have discovered that some insurers will cover it for a maximum of only $9,000 (usually quoting the Glass's guide). Has anyone else had a problem like this and what did you do about it? Thanks. Rob.
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Reply By: fisho64 - Monday, Jun 16, 2008 at 22:22

Monday, Jun 16, 2008 at 22:22
Its possible you might be paying too much for it? But most companies offer an agreed value type policy or replacement cost, but may require an inspection to ensure that you arent over-insuring.
Have you tried shopping around?
A problem for some people here in WA is that second hand car prices are higher in some cases than east coast due to the economic circumstances, and the same prob pops up. Havent had any trouble with WESFARMERS though.
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Follow Up By: Member - Phillip S (WA) - Monday, Jun 16, 2008 at 23:29

Monday, Jun 16, 2008 at 23:29
Fisho....do work for Wesfarmers....or a grass seed maybe??
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Follow Up By: fisho64 - Monday, Jun 16, 2008 at 23:40

Monday, Jun 16, 2008 at 23:40
could you put that in english please??
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Follow Up By: Member - Phillip S (WA) - Tuesday, Jun 17, 2008 at 00:02

Tuesday, Jun 17, 2008 at 00:02
Grass seed=farmer
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Follow Up By: fisho64 - Tuesday, Jun 17, 2008 at 01:44

Tuesday, Jun 17, 2008 at 01:44
not sure why you call them a "grass seed"?

but negative, I do not work for WESFARMERS, nor am I a farmer.

Marine Engineer

Cant imagine why you would think that I am a farmer though-not sure if it is a derogatory comment, pardon me if I am a bit slow on the uptake?
I have always thought of farming as a respectable profession, and probably the least likely people to relieve you of your wallet or dignity.



Dont wish it...it might happen!
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Follow Up By: Member - Phillip S (WA) - Tuesday, Jun 17, 2008 at 11:17

Tuesday, Jun 17, 2008 at 11:17
Old jungle saying...grass seed = farmer....( you supposed to add your sense of humour here.. ; ).....)

Anyway I was trying to draw a connection between you and wesfarmers as I have one and thought maybe you had one too....that's all....: )

Don't lose sleep over it...it's all good.
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Follow Up By: fisho64 - Tuesday, Jun 17, 2008 at 14:58

Tuesday, Jun 17, 2008 at 14:58
:) yeah I know!

Just always found Wesfarmers to be easier to deal with and competitive. Dont even have any wesfarmers shares anymore.

all smiles and chuckles.

It is pretty common here though now that if someone provides a requested recommendation then someone will make the suggestion of a connection. Often I can see why specially with the fuel saving gizmos and other crap sounding like an infomercial, but in this case, no.
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Reply By: Kiwi & "Mahindra" - Monday, Jun 16, 2008 at 22:26

Monday, Jun 16, 2008 at 22:26
havent heard of that before, but that could be the market value, not agreed value.....
Nath's old 4wd was insured for $13000 so he thought until it went gooooone about 8 months later and found out that it was only insured for $7000 - didnt even pay the full loan out! very peeved....pay the extra per yr and get agreed value...then you know for sure!

Laura
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Follow Up By: Member - Phillip S (WA) - Monday, Jun 16, 2008 at 23:32

Monday, Jun 16, 2008 at 23:32
Kiwi...got watch insurance companies...the devil is in the fine print....they work hard to get you to part with your hardearned....but work twice as hard if you try to claim...lol
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Reply By: howesy - Monday, Jun 16, 2008 at 22:45

Monday, Jun 16, 2008 at 22:45
They are often out of touch with current market trends. When I got my 75 series you could not buy a 90's model for under 13000 but the insurance companies said value was 10000 so I got an agreed value policy for 15000
AnswerID: 310426

Follow Up By: Muzzgit [WA] - Tuesday, Jun 17, 2008 at 00:13

Tuesday, Jun 17, 2008 at 00:13
Watch out Howsey and anyone else who has "agreed value" .

A former member of exploroz had his TD100 series knocked off and the insurance payout was way below market value, even though he had an "agreed value" policy.

He fought long and hard to get what he thought he was rightfully owed but insurance companies being what they are, (pr!cks) they beat him into submission.

A fella called Bilbo, he was.
Usually a happy hobbit he was.
Ended up getting a 2.8 GU patrol and dropping a chev V8 into it he did.

.
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Follow Up By: Member - Matt M (ACT) - Tuesday, Jun 17, 2008 at 08:20

Tuesday, Jun 17, 2008 at 08:20
Hey Muzz, was that last bit a Hobbit or Yoda?
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Reply By: Member - Warfer (VIC) - Tuesday, Jun 17, 2008 at 01:24

Tuesday, Jun 17, 2008 at 01:24
Hiya Outbackogre


Giv DGA a call !

Here Tis
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Reply By: Member - DOZER- Tuesday, Jun 17, 2008 at 08:57

Tuesday, Jun 17, 2008 at 08:57
DGA do market value also...the amount insured is stated to be Market value, ask how much and they will be vague at best....GIO have my car agreed value, i understand the insurance companies wanting to stamp out bogus claims, but when they say to you, whatever market value is, you are basically becoming subject to their accessors opinion, and if they over quote, they wont work their too long...i have heard and seen ppl loose money over this, basically you pay a set premium for an unset amount, and thats not good business. Pay extra for agreed.
Andrew
b4 you bag me out, walk a mile in my shoes, then your a mile away and have my shoes :)

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AnswerID: 310464

Follow Up By: Member - 25Left - Tuesday, Jun 17, 2008 at 13:24

Tuesday, Jun 17, 2008 at 13:24
Your initial agreed value is one thing but check the value at each renewal. I've found they have a habit of revaluing to what they think it should be despite the previous agreed value.
I had an initial agreed value of $20k on one of my cars & the following year $15K. I only discovered it 6mths later, phoned the insurer, had words and sorted it out, but ......
KEEP AN EYE ON THE BUGGERS.
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Reply By: Outbackogre - Tuesday, Jun 17, 2008 at 09:05

Tuesday, Jun 17, 2008 at 09:05
Thanks for replies everyone. I'll shop around some more and try for agreed value. Cheers. Rob.
AnswerID: 310466

Follow Up By: DIO - Tuesday, Jun 17, 2008 at 09:54

Tuesday, Jun 17, 2008 at 09:54
Just remember, if you insure for Market Value any extras that you install onto the vehicle will NOT be covered. Found this out yesterday with my vehicle cover. have now insured for agreed value which WILL include 'stated' accessories. Also make sure that you understand how much they will cover (if any) of items inside your vehicle that may be stolen. You might be surprised at how low it is.
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Reply By: Boobook2 - Tuesday, Jun 17, 2008 at 10:44

Tuesday, Jun 17, 2008 at 10:44
GIO will do agreed value to just about any value, the more the value the more money they get.

AnswerID: 310479

Reply By: Willem - Tuesday, Jun 17, 2008 at 15:11

Tuesday, Jun 17, 2008 at 15:11
Why would you want to bother insuring a $11,000 vehicle anyway?

In a couple of years time the annual insurance may equal the value of the car

Go for 3rd party property insurance only and drive carefully!



Cheers
AnswerID: 310531

Follow Up By: Outbackogre - Tuesday, Jun 17, 2008 at 15:57

Tuesday, Jun 17, 2008 at 15:57
I hope it doesn't depreciate that fast Willem. The vehicle will be under finance - I'd rather not be paying off a loan for a car that, despite the best of care, I still managed to write off. Rob.
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