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Vehicle Insurance Agreed Values (is it time to bump it up)


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#1 73SUNBURSTEXYOUWON

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Posted 03 June 2021 - 06:19 PM

My insurance arrived in the mail today.

Before opening it, i thought this will be interesting, lets see where its at.

Over the last 4 years, the reasonably conservative agreed value - i have left pretty much alone, so No change really, but am i under insured now?

Looking at sales and car price increases lately I am seriously considering making a call to my insurer to update it, even though the premium will rise accordingly.

Have others thought same?

#2 Ddstoys

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Posted 03 June 2021 - 06:55 PM

Yeah I’m in the same boat the agreed value they offered 5 years ago seemed rediculous to me but seeing current prices I’d struggle to buy a rusty project now


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#3 MFM

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Posted 03 June 2021 - 07:39 PM

Just in the three years I've had my car, prices have gone up considerably,  I thought I payed a fair market price and insured the car for 75k, but I reckon its gone up 30k in this period which is crazy. 



#4 LXM21

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Posted 03 June 2021 - 08:34 PM

Interesting one, went to Shannons just this week to increase my agreed value, they would not move no matter what I submitted. 



#5 claysummers

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Posted 03 June 2021 - 08:46 PM

Insured my freshly restored FB ute for $30k last December with Shannon’s. Yesterday rang them to advise engine, suspension and brake upgrades, saying prolly devalued it If anything. They still bumped the agreed value to $35.


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#6 RallyRed

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Posted 03 June 2021 - 09:07 PM

Yes, reckon bump it up.
I have heard it said, that insurers are
"interesting" animals.
If you bump up the agreed value, they in turn get a higher premium.
If you let the real value of the insured item exceed the insured value, ( i.e. the insured value is Less than the real replacement value), then You save on the premium.
They don't like the second one.
It may be an old story, but some years back the following seemed to occur..

Assuming its like house insurance, they have been known to say things like...
You insured your house for $500k, when the real replacement cost was $1mill.
Therefore You accepted that your wish was to insure for 1/2 the possible damage payout, thus as an example, your current damage claim of $400k will be payed at that ratio i.e 50% of the claim. = $200k.
Thus people were having their major claims reduced by the so called " co - insurance" factor. In the example above, 50%.
I never understood how they got away with it?.
Moral- never be under insured, pay the small incremental $$ to be fully insured.

#7 Ice

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Posted 03 June 2021 - 09:35 PM

Shop around all insurance companies are rogues 



#8 73SUNBURSTEXYOUWON

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Posted 04 June 2021 - 08:13 AM

Interesting one, went to Shannons just this week to increase my agreed value, they would not move no matter what I submitted. 

  

Shop around all insurance companies are rogues 


Thanks to all for the feedback gents, as quoted, i'll be making the call to my insurer (shannons)
Havin the discussion, then shoppin around based on the outcome.

:)

#9 Rockoz

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Posted 04 June 2021 - 09:59 AM

Col

 

There was a lot of bad stuff about insurers that came out after the fires in NSW in Jan 1994.

 

If you only had a small loss, the insurer would pay out to the value of the claim provided it was less than the insured value.

It was when people  had to make a total loss claim where things got nasty.

Many people dont take the small things into account when they insure their house.

Curtains, floor coverings, clothes, stuff in the kitchen.

The insurers had a template that they worked off for assessing the loss.

They counted the number of rooms and came up with a typical value for the size of house and the neighbourhood.

They then sifted through the site looking for signs of electronics etc, which if above typical numbers would increase their assessment of loss.

It was when they came up with that figure that they started to reduce the payout based on percentage underinsured.

It upset large numbers of people.

However, almost all ended up getting the balance from the huge donations that were made by the public.

Even those with no insurance ended up with enough to rebuild.

 

As a firefighter who spent significant days during the campaign, I was personally peeved at the way the money was allocated.

Those with zero insurance got the first slice of the pie.

Those who hadnt contributed anything to fund the fire services got preferential treatment.

There are only 2 reasons they would have been not insured.

They already owned the house and didnt have to meet lender criteria for insurance.

Or, they financed the house from another source.

Back in those days, the RFS was largely underfunded, yet had the major firefighting operations.

 

Insurance was explained to me by a smart person many years ago.

By taking out a policy, much like you do with a TAB bet, you are betting that you will be making a claim.

The insurer, when taking the risk, is betting you wont make a claim.

The only difference between insurers and the TAB, is that the TAB doesnt change the rules half way through the race.

 

Much like solicitors, I have had very few exchanges with insurers that were easy to navigate.

The only exception was my sickness and accident policy, and my permanent disability policy that were part of my super fund.

They were very helpful, and went over and above to settle my claims.

 

Cheers

 

Rob



#10 RallyRed

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Posted 04 June 2021 - 11:00 AM

Well said Rob.

#11 yel327

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Posted 04 June 2021 - 12:57 PM

The best experience I had with Insurance was when my 2010 SR5 was written off at 15,000km and less than a year old. I bought it as a demo (treated as a new car) and NRMA replaced it with a new 2011. Which cost them something like $70k. I had Insured it for what I pad for the demo which was about $45k, but being a dealer demo it was loaded with Toyota accessories plus I’d fitted a hard lid and Satnav head unit.
You have to read the fine print though. The replacement had to be in Australia and the same. I almost got paid out for $45k, and to replace it would have been near $55k. The problem was there were no V6 auto white SR5’s in Australia. Unlike the dud diesel version the whole driveline in the petrol V6 versions came from the Landcruiser plants in Japan and the 2011 Tsunami had wiped out all the production facilities for the 1GR engines and A750F boxes so Thailand had stopped shipping the V6 variants to Australia. Plus this was right at the end of 2011 production in July 2011, the 2012 production was starting. I just told them to give me a diesel instead, and I’d just trade it on something else. NRMA told me they’d just pay me out, car had to be the same. In the end Toyota Australia did get two V6 SR5’s, that had driveline that had been shipped out of Japan in the days prior to the Tsunami, and one was a white Auto. The dealer that supplied it had a VIN number for it even though it wasn’t here yet so NRMA supplied it to me. The dealer bent over backwards to supply it, most likely as they got full retail for it.

So for the new Ram 1500 coming to me later this year, been thinking about the new GIO policy with lifetime new car replacement. Will have to read the fine print, as not sure what would happen if it got totalled in say 3 years time. I’ve ordered a DS Express, 2022 is supposed to be the last of these DS “Classic” models, and Ram are supposedly going to by then be making single cab and Quad cab DT Rams which will probably be over $100k in Australia for the DT Express Quad cab. I wonder if it was totalled will they replace it with a newer and more expensive series? It’s only costing $80k which is what I’d insure it for, but even now they are $88,300 for the same thing. I wonder if it had reduced in Insured value to say $65k after 3 years, and it was crash damaged would they try to fix it based upon the $65k value or worse (for them) the $100k cost to replace it under their policy? I just looked at the PDS and is says: same make, model and series within 90 days. It used to say same make and model. It does say: if not available within that time, provide you with a new car that is available within the time stated above and which is a similar make or model. So although I hope it’s only academic, if it did get badly damaged and the supply of new Rams is like it is now (90 days won’t happen) then they might give me a V8 Silverado? The PDS does say if an agreement cannot be reached on what the replacement car will be or if it’s longer than 90 days they will pay out the amount covered or what a reasonable replacement will cost whichever is higher, which on the surface appears to be decent wording.

Edited by yel327, 04 June 2021 - 01:02 PM.


#12 RallyRed

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Posted 04 June 2021 - 05:11 PM

.."pay out the amount covered or what a reasonable replacement will cost whichever is higher,".

 

That IS good wording, normally it's whatever is Lower.



#13 yel327

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Posted 04 June 2021 - 05:18 PM

That bit is good, but what they define as “reasonable replacement” is what it’d hinge on. At the moment the only vehicle I can see as a reasonable replacement for a Ram 1500 is a Silverado 1500. However the Silverado HSV sell is comparable to a Ram 1500 Laramie with its leather, heated seats etc and its $120k+ price tag. To an insurer I’m sure they’d try and say a Ranger or Dmax is comparable.

I guess it’d even harder if you’d insured a new VFIII SSV ute with them, and it got written off. What is a new reasonable replacement vehicle for it? I can just hear complaints from owners of say a 200 Series Sahara when it got totalled and they were offered a 300 series with a much smaller V6 diesel.

Edited by yel327, 04 June 2021 - 05:21 PM.


#14 73SUNBURSTEXYOUWON

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Posted 12 June 2021 - 10:42 AM

Well, i've had the discussion with my insurer Shannons.

They reveiwed and accepted my request, to bump up both my cars agreed values, which Shannons saw as reasonable.
The EH up 25% to 50K.
The XU up 67% to 150K.

I had photographed my vehicles in support of the agreed values, Shannons hold those images on file, which is what they used to review my request.

The policy premium also went up accordingly, as did the excess on the Torana.
Excess for the EH remained the same.

I asked about how they Insure higher value cars that sell for e.g. 295K....
Depending on circumstances, the uniqueness of the vehicle etc, they may or may not insure a vehicle for the final sales figure.
E.g. Auctions, people tend to get carried away in the hype of things, at times paying rediculous money.
So its at Shannons discretion how they would review what they deemed as a reasonable agreed value.

#15 claysummers

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Posted 14 June 2021 - 06:19 AM

Insured my freshly restored FB ute for $30k last December with Shannon’s. Yesterday rang them to advise engine, suspension and brake upgrades, saying prolly devalued it If anything. They still bumped the agreed value to $35.


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Yesterday showed the ute at Toowoomba, after the mechanical upgrade. Guy was pestering me to buy. Told him insured for 35. He said I’ll give you that right now. Thinking (about bumping up the insurance, not selling).


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#16 Rockoz

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Posted 14 June 2021 - 01:42 PM

I can remember the NRMAs much hyped agreed value campaign back in 1983.

I had my heart set on a VB 308 4 speed.

Searched for weeks and could only find autos.

Eventually found a nice 253 4 speed so settled for that.

Had $9990 on the window which was about right compared to the 308 autos at the time.

Traded in an XB Falcon. A car I had crashed and rebodied.

The "new" body was an ex taxi and had rust everywhere.

I knew I wasnt going to keep it so I just bodgied it up with loads of bog and painted it.

Paint job was really good.

I super glued a door corner back on before I went into the car yard, and managed a 2k trade.

Pity whoever ended up with that.

Cut to the chase.

 

I went to an NRMA branch to insure it as they wanted to sight it.

All they would insure it for was 8.5k.

Had a conversation about the cost of replacing it.

The payout wouldnt even get close.

When I queried their agreed value promotion, the NRMA guy said basically you agree to the figure we tell you, or you dont get insured.

 

In hindsight though, I should have spent the extra couple grand and bought the black A9X hatch that was offered to me a month earlier.

Had only driven Sydney to Bathurst for 2 races, and a little bit of running around. Less than 5000 on the clock.

Paint was faded on the front of the bonnet because it lived in a carport.

 

Apologies for the side tracking.

 

Cheers

 

Rob



#17 howie1300

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Posted 25 June 2021 - 10:53 AM

Hi all I have had my SLR5000 sitting in the garage for over 20yrs, never left the shed, and I was always thought

as the car was not registered and plates handed in, I was unable to get insurance. Since I joined this forum I noticed the name Shannons come up a few times, so I rang them and to my surprise they would insure the car whilst it was unregistered, I asked to insure for $60K which they accepted with no issues, about $360 from memory. I feel I bit more at ease having some insurance in place after 20yrs+ of no insurance.I have budgeted $10K to get her road worthy. Concentrating mainly on Brake: Fuel:Electrics



#18 claysummers

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Posted 25 June 2021 - 07:28 PM

Was about $80 to add my laid up EK panel van (body on rotisserie) to my existing policy with Shannons. Not going to get stolen but if there was a fire id be covered.

early Holden nut

#19 Ddstoys

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Posted 25 June 2021 - 09:01 PM

Was about $80 to add my laid up EK panel van (body on rotisserie) to my existing policy with Shannons. Not going to get stolen but if there was a fire id be covered.

early Holden nut


I never think of my projects I really should seee about adding them as today’s prices I could never afford to replace them


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#20 gooley

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Posted 14 July 2021 - 01:44 PM

My mate who owns a clean original turbo Mitsubishi Sigma, called Shannons to change his agreed value. They offered him extra $5k value and he only has to add $1 to the policy per month. (Yes, Sigma's are not worth anywhere close to Torana's.) I think the agreed value was still under $20k for the Sigma so most probably a difference there,

 

I'm also in the same boat and ready to see what my options are with my policy through Shannon's. Although, I want to put my motor back into my LC before I give them a call. 


Edited by gooley, 14 July 2021 - 01:45 PM.


#21 Gatti

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Posted 14 July 2021 - 02:22 PM

I recently increased my LJ from $60k to $70k with Shannons with no problem over the phone.



#22 Ice

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Posted 14 July 2021 - 06:05 PM

I recently increased my LJ from $60k to $70k with Shannons with no problem over the phone.

Hate to think what the premium is 



#23 claysummers

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Posted 14 July 2021 - 06:43 PM

Young fellas have to suck it up


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#24 73SUNBURSTEXYOUWON

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Posted 14 July 2021 - 07:40 PM

I recently increased my LJ from $60k to $70k with Shannons with no problem over the phone.

  

Hate to think what the premium is 


Example:

Premium, for both my cars, 1 policy is $91/mnth.

The excess on my EH @ $50k$, is $350 for accident repair - ?? Any extra excess Unknown if Stolen.
(need to ask - afterthought)

The excess on my XU @ $150k$ is $1500, for an accident repair.
THEN Plus an Extra $1500 if the Vehicle was Stolen
=ing $3000.

#25 Ice

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Posted 14 July 2021 - 07:55 PM

Yeah not to bad 

i have 3 cars with Shannons and give them about 1000 bucks a year 






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