2 replies to this topic

[hanra]

The thought came up the other day about the Insurance value on my car, and if its insured for a suitable figure.

It is currently insured for $63,668 with an annual Premium of $373.34 with Shannons. Obviously the more its insured for, the higher the premium so there has to be a balancing point. 

However it makes me wonder if I should re-visit the insured amount.

 

Is it still current in today's market? What would be a suitable figure to insure it for? What is my car really worth if I did sell it? What would I have to pay to replace it with something similar?

 

 

[Cook]

I guess the starting point would be what are similar cars selling for today/recently, as sales are the best indicator of value.  Then the replacement/personal value you place on the car, and this is where your negotiation skills will come into play with the insurer.  Finally, as you have flagged, there is the balancing act between insurance piece of mind and cost.  Good luck with it.  Cheers Ron

[dattoman]

I'm not sure "replacement cost" is the thing in this case

Since it can't BE replaced due to what it is

Not to mention the fact you'd be unlikely to want to replace it.. .as you'd possibly move on to other things (have tried to sell before , never gets used due to road conditions , can't park anywhere... blah blah)

What you have to look at is the "Oh shit... its gone" cost

Whats a happy amount you would want to see in your bank if the unthinkable happened ?

I'd say $100k would put me in a happy mood with the minimum of regret or remorse about it going missing , damaged in a fire/flood (it is QLD after all... there things can happen on consecutive or even the same day)

Yes its a balance between cost to insure vs value and risk