Insurance fraud?

[Munroast]

Insurers, have always asked for a reference value, which I give them, but should it come to total loss, they will pay me a value they decide were the cost of a similar replacement. The only way to avoid that, is an 'agreed value' policy.

When renewing my van policy over the phone I was once asked how much I thought it was worth - being the clown I am, I said "Depends if I have just filled it up with diesel" alluding too, it may double the value

it did cross my mind after that, if there was ever a claim, they would replay that phone call and send me the value of a tank of diesel


(and that was not my last van but the maestro before it so probably 1998? so they have been asking these questions for years

 

[carmanmemoranda]

I just did the renew on my insurance and noticed a car-value being stated in the renewal. I don't remember having a value stated in the past. Is this something new for people in general? The thing is that the stated value is about half of the cheapest price shown on autotrader for something comparable or worst (in age and mileage). I can't help but think I am being low balled. Somehow, I could lose the car because of theft or write off from a minor claim. Then they could recover it and sell it for double of what they pay out to me. I don't know where they got the value amount from. Should I challenge them on that? Obviously, if I do, they would raise the premium. As it is, by renewing, I would have agreed to their low-ball number.

I can't help but think I have higher risk of theft now, since there is profit to be made for someone. Also it could be a ploy for giving me lower insurance cost, but in reality they are substantially reducing my cover pay out.

I thought you knew insurance inside out.

 

[DiyNutJob]

when did you renew, usually you have a cooling off period , 14days maybe more , after that admin charges apply , and they dont charge a cancellation fee and will pro-rata any insurance used

I renewed a day before expiry. I wasn't expecting anything unexpected. But, they pulled a fast one on me. A new insurer asking for an estimate is OK. I never had an existing insurer asking for an estimate or stating a value in the past. I thought it might have been a case of desperate times calling for desperate measures, affecting everyone. But, seems not.

Their price is good. Now it seems the policy comes with a limp.

 

[DiyNutJob]

I thought you knew insurance inside out.

You thought incorrectly. I made no such claims.

 

[carmanmemoranda]

You thought incorrectly. I made no such claims.

You knew all about your policy

You told us (incorrectly) many times.

If you disagree with the valuation of your vehicle discuss it with the insurers.

 

[DiyNutJob]

If you disagree with the valuation of your vehicle discuss it with the insurers.

I have a better idea. With the increased theft risk, I will put car on jenga and take a wheel off between grocery trips.

 

[Mottie]

I didn't ask

You’re asking us

they put a value on it.

Correct

Now I have agreed.

You could have told them what you think it is worth and be charged a premium to reflect that value.

Pray tell, do I have an agreed value policy?

Only in so far that you have agreed what THEY value it at, not what you value it at.

 

[aveatry]

I have always thought that its a trick question when they ask how much is it worth because if you low ball and undervalue and need to claim - they wont pay out as you undervalued it to get a cheaper insurance. But if you over value it - its gonna cost you more to insure but they will only pay the "book" price anyway. So what is the point in them asking you - if not to try and trip you up.

 

[ETAF]

I seem to remember , i think it was directline , maybe a different company used to ask, is the car value over £30K and that was it

 

[Harry Bloomfield]

I seem to remember , i think it was directline , maybe a different company used to ask, is the car value over £30K and that was it

My car value is noted on the policy document, and when, as I often do - I ask them to requote it, they ask me to confirm the value.

 

[Munroast]

I have always thought that its a trick question when they ask how much is it worth because if you low ball and undervalue and need to claim - they wont pay out as you undervalued it to get a cheaper insurance. But if you over value it - its gonna cost you more to insure but they will only pay the "book" price anyway. So what is the point in them asking you - if not to try and trip you up.

They don't like folk over-valuing stuff either, they may charge you more for the higher value, but they will walk away from any claim on the grounds you over-valued

unless you get the value to within 50p, up or down - you're stuffed
(that last bit was probably a bit exaggerated)

 

[carmanmemoranda]

I have always thought that its a trick question when they ask how much is it worth because if you low ball and undervalue and need to claim - they wont pay out as you undervalued it to get a cheaper insurance. But if you over value it - its gonna cost you more to insure but they will only pay the "book" price anyway. So what is the point in them asking you - if not to try and trip you up.

As long as your value is somewhere in the realms of realism it isn't and won't be a problem

Under value or over value it (excessively) and they WILL take an interest

 

[aveatry]

As long as your value is somewhere in the realms of realism it isn't and won't be a problem

Under value or over value it (excessively) and they WILL take an interest

I still dont see the point in them asking if they will only pay the book price anyway

 

[DiyNutJob]

Autotrader free valuation service:

 

[Mottie]

Go on the weight and get scrap value.