4wd Insurance
Submitted: Saturday, Jul 17, 2010 at 22:23
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80136
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2000 Red Rodeo
I have just put a new engine in my Rodeo so I rang my insurer to update them of the new engine number. While I had them on the line I had a couple of questions for them, both of which I was disappointed with their answers.
First question was in relation to the “Agreed Value”. Ie what would be the payout in the event of a total loss? Given the new motor I was looking to make sure I was fully covered for the additional value that has been added to the car. I was advised that for my car the maximum they would cover me for was $10,500 + up to an additional 40% for accessories. Making a total agreed value of $14,500. I explained to the guy on the phone that $14,500 would only just buy the accessories that are on the car. But even after he spoke to his supervisor I didn’t get anywhere.
“Agreed value” is a very subjective term. The value they have put on my car is not reflective of what it would be worth on the market but worse than that it would cost almost double their value for me to purchase a replacement and get it to a similar standard.
Given that more and more people are buying older 4wd’s and then rebuilding them into quality machines that suit their needs. Insurance companies that use Redbook or other “standard” values for cars are completely inadequate. The one size fits all approach does not work in the 4wd market.
Second question was in relation to whether I was covered for off road driving. Again the guy I spoke to wasn’t sure and again went to the supervisor. They covered all marked roads and tracks. But although this sounded ok, this came with a lot of other clauses and conditions which left me more confused than when I started.
So I guess next week I will be looking for a new insurance company. I’m not knocking the company. The cover they provide is fine for a standard car. I will probably stick with them for our Falcon. But for my 4wd they leave me feeling massively under insured. To me the whole point of having insurance is that you are not any worse off in the event that the worst happens.
So my advice to others would be check your own policies and ask them plenty of questions. Make sure you can replace your car for what they will payout. And finally does anyone have any suggestions for who I should call for a quote?
Regards
Geoff
Reply By: Member - Wayne B (NSW) - Saturday, Jul 17, 2010 at 22:47
Saturday, Jul 17, 2010 at 22:47
The manufactured Date is the main ingredient for vehicle valuation.
If you restore a vehicle some insurance companies will inspect it and agree to a fair value. It will never be anywhere near what it cost you to restore.
Cheers
Wayne
AnswerID:
424349
Reply By: Shaker - Saturday, Jul 17, 2010 at 22:57
Saturday, Jul 17, 2010 at 22:57
It is very hard to put a value on a new motor, as the vehicle would be expected to have a motor fitted anyway.
It would be like wanting to increase the 'Agreed Value' for new tyres, or a new transmission.
AnswerID:
424351
Follow Up By: 2000 Red Rodeo - Sunday, Jul 18, 2010 at 15:27
Sunday, Jul 18, 2010 at 15:27
fully agree.
FollowupID:
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Reply By: Tonyfish#58 - Sunday, Jul 18, 2010 at 07:44
Sunday, Jul 18, 2010 at 07:44
Geoff - Insurance is a rip off that's for sure. I only insure as I have a lease vehicle. My 2007 Rodeo with all the gear only gets insured for $20,000.
That's a joke considering the premiums paid. You would not buy a 2007 Rodeo in good condition with all accessories for under $28,000.
When the lease runs out I buy the car and wave good-buy to rip off insurance.
I would rather bank on me not having an accident - its much like playing lotto :-)
Wholesale prices should not be used for insurance - so Red Book pricing is a total joke.
Cheers Tony
AnswerID:
424353
Follow Up By: 2000 Red Rodeo - Sunday, Jul 18, 2010 at 15:42
Sunday, Jul 18, 2010 at 15:42
You could have a bog standard Rodeo with 400,000 km on it and most insurance companies will treat it the same as a fully kitted out Rodeo with only 50,000 kms.
This sort of approach might work
well for Camry's and Commodores but it is grossly inadequate for the 4wd market.
FollowupID:
694825
Reply By: Member - Bruce T (SA) - Sunday, Jul 18, 2010 at 10:42
Sunday, Jul 18, 2010 at 10:42
Hi Geoff,
Why not try Shannon's? They do specialist vehicles; worth a try.
Cheers,
Bruce and Di
AnswerID:
424363
Follow Up By: farouk - Sunday, Jul 18, 2010 at 11:18
Sunday, Jul 18, 2010 at 11:18
Hi Allot Really cannot agree with the statement that they do not valuue the vehicle anywhere near what they are worth,we have a 1997 Landcruiser which is agreed value of $14800 and a 2007 Mitsubishi 380 GT valued at $21000 which we pai $23000 for 20 months ago. What is wrong with those valuations?Farouk
FollowupID:
694796
Reply By: Member - Tony V (NSW) - Sunday, Jul 18, 2010 at 11:28
Sunday, Jul 18, 2010 at 11:28
Geoff,
You can get get you vehicle insured for "off road" and for all those other accessories that you have put on the vehicle, but you will pay a premium for it.
TCIS, a broker will cover highly modified 4WD vehicles but the yearly cost is not cheap.
There is a TCIS thread (2802) about them here
Thread 2802 about TCIS insuranceClick here for TCIS
AnswerID:
424366
Follow Up By: 2000 Red Rodeo - Sunday, Jul 18, 2010 at 15:52
Sunday, Jul 18, 2010 at 15:52
My current policy only costs $430 per year. I would be happy to pay double that to get fully covered.
It might end up costing me double what I pay now. But if I ever need to make a claim (fingers crossed) the cheaper policy will have cost me a fortune if I can only get half the value of my car.
Thanks for the link to the other thread. I will give TCIS a call this week and see what they have to offer.
FollowupID:
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Reply By: get outmore - Sunday, Jul 18, 2010 at 15:39
Sunday, Jul 18, 2010 at 15:39
Re where you are covered. Have you read your PDS instead of relying on what some underpaid workers tell you over the phone?
The PDS will tell you where you are covered and is in writing and agreed to by your signiture
you are covered in every instance not precluded in the PDS
most companys cover you anywhere within australia you are legally entitled to be
but could be different as I dont know your company
AnswerID:
424396
Follow Up By: Member - Tony V (NSW) - Sunday, Jul 18, 2010 at 23:11
Sunday, Jul 18, 2010 at 23:11
Get outmore,
I think the terms you are looking for is "gazetted roads", that is any road tar or dirt that is gazetted or mapped for public access or travel.
Certain areas of the Cape, the Simpson, CSR and quite a few others are not gazetted, they cross private or aboriginal lands or need permits and do not qualify or the insurance company will not pay for recovery of the vehicle from these
places.
But as you say, check the PDS, some insurance companies will cover you if they are informed that you intend to travel these areas.
FollowupID:
694898
Follow Up By: get outmore - Monday, Jul 19, 2010 at 00:39
Monday, Jul 19, 2010 at 00:39
nope
thats not the term im looking for
if you are only covered on gazetted roads your PDS will say so
it tells you you are not covered in the event of nuclear war, acts of terrorism etc etc no mention of road status your covered on
these documents are legally binding and unless something isnt excluded then its included
Im insured with the RAC and it clearly states you are covered anywhere within australia.
it also excludes cover if the vehicle is being used illegally - no other exclisions relating to the type of area or track
so as you say if you do not have permission to be somewhere you need it that is illegal use but if you have as permit you are legallaly entitled to be there and as such are covered
any beach or track etc gazetted or not i am covered with the proviso i do not deliberatly dnmage my vehicle
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Follow Up By: Member - Tony V (NSW) - Monday, Jul 19, 2010 at 11:52
Monday, Jul 19, 2010 at 11:52
Thanks get outmore,
shows that reading the PDS is so important.
FollowupID:
694918
Follow Up By: The Landy - Monday, Jul 19, 2010 at 22:44
Monday, Jul 19, 2010 at 22:44
Get out More is spot on.....if it isn't precluded it is included by definition. In fact by asking your insurance company to more accurately define something will actually diminish your cover, not enhance it.
Cheers, the Landy
FollowupID:
695010
Reply By: MattyA_LC105 - Sunday, Jul 18, 2010 at 19:06
Sunday, Jul 18, 2010 at 19:06
Give Just Cars a try. I had to photograph all my engine mods (turbo intercooler) and list all my other mods and price to replace new, however with a bit of to and fro with them I got a price that was closer to the mark if it got stolen or a complete write off. I pay for that in my fees but its peace of mind.
AnswerID:
424421
Reply By: fisho64 - Monday, Jul 19, 2010 at 02:58
Monday, Jul 19, 2010 at 02:58
GIO are also "anywhere the vehicle is legally allowed to be"
What company are you talking about?
AnswerID:
424453
Reply By: The Landy - Monday, Jul 19, 2010 at 22:46
Monday, Jul 19, 2010 at 22:46
We have 'The Landy' insured through a specialist insurer given the rebuilt and accessories, but you will never get an agreed value that will cover you completely....and self-insuring this part is simply another cost associated with 'customising' vehicles.
Cheers, The Landy
AnswerID:
424559
Follow Up By: 2000 Red Rodeo - Tuesday, Jul 20, 2010 at 21:39
Tuesday, Jul 20, 2010 at 21:39
Hi The Landy
What company are you with and are you happy with them overall?
Geoff
FollowupID:
695137
Follow Up By: The Landy - Tuesday, Jul 20, 2010 at 22:42
Tuesday, Jul 20, 2010 at 22:42
Hi Geoff
I had TCIS 4WD insurance brokers arrange the insurance and whilst I haven't had a claim I am happy with the cover I have. No different to standard comprehenisve cover.
I had Pickles value the car in 2006 after the 'rebuild' and I gave them a number based on the work I had done and accessories added, but discounting the labour compenent, which they confirmed. It is important to note that you need to get them to confirm the value of the vehicle based on work undertaken, and not what they would expect to achieve at auction. I had no expectation that 'The Landy' would ever have sold at the price I had invested in it......
I cannot recall the name of the actual underwriter (travelling at present).....
Cheers, The Landy
FollowupID:
695145
Follow Up By: The Landy - Tuesday, Jul 20, 2010 at 22:49
Tuesday, Jul 20, 2010 at 22:49
And could I add...
Most mainstream insurers will not recognise the fact that you may have reconditioned the engine, or any other components for that matter, given that all vehicles need these to function.
The value of these items are just a component of the overall valuation, and not considered separately. This could work for you, or against you......
In the case of 'The Landy' the reconditioned engine and drive line were factors in the higher valuation, that is to say I could a higher value assigned because of the engines condition.
But 'The Landy's' insurance bill runs at around $1200/1300 pa.
Cheers, The Landy
FollowupID:
695146