Hello looking for advice.
I bought a 2010 MY11 Volkswagen Golf R 3DR Hatchback a year ago for $30,000 and had it insured with RACV for agreed value of $27,000. Come renewal time they have increased by premium by $10 and dropped the maximum agreed value to $20,400. RACV has told me that they go off Glass's guide which I assume is similar to Redbook which states that the value of my car is $13-15k which is obviously absurd not even taking into account that my car has relatively low kms (80,000) and is fully-optioned with sound system, sunroof, motorsport seats etc. I have called up and they said the agreed value reflects all that and cannot be increased anymore.
Has anyone been able to talk up the agreed value further or is there any way of doing so? I know there's the option of going with another insurer but to get it covered for $30k+ I'd have to pay triple the amount I'd be paying with RACV.
TIA
Advice on Increasing Insurance Agreed Value
Comments
Could you elaborate more on this?
I believe that Insurance companies have a lowest - to - highest agreed value threshold for each particular car.
This will obviously reflect your premium.
In your case, they have given their highest value.
Having said this,…over the years of ownership, your car value will decrease, even if it is agreed value from the start.I would get other insurance quotes and see if they can value your car higher.
If so then threaten to leave your insurance and if they don't come to the party, then switch.Many organisations don't value loyal customers, so don't value their services if they don't move for you.
Cheers
To go above the max limit on regular insurance you will have to switch to classic/Vintage/modified car insurance. I am not sure if RACV provides this. Shannons usually do this. But its very expensive also.
Mate you would be surprised at what the VWs go for now. No one wants one.
Parents bought a 2012 VW Jetta 118TSI, bought for $38k as an ex-demo and been in the yard for 10 months. Fully optioned out, GPS, leather, etc. 5 Years later and want to upgrade for a 200 Landcruiser, out of 5 Toyota dealerships the best trade-in value we could get was $5k, and that was after a lot of arguing. Most wanted $3k max.
To be fair, a Golf R only shares the same badge as a Jetta.
The Jetta's are crap
I agree, I'm just saying that the value of VWs has tanked.
You're never going to get the best price with a trade in. A private sale is the best course of action.
I agree completely, but the value of VWs has dropped out the rear end after the whole emissions thing and the gearbox issues.
Geez I take it your parents decided to sell privately instead? I feel like a lot of cars are undervalued on redbook and glass's though, not just VWs. Apparently the data they gather from Vicroads etc. favours dealerships and insurance companies because people understate the value of their car on paper to save on motor vehicle duty. But at the same time I've heard of insurance companies overvaluing cars. tis all confusing
No, still traded it in. Just got the 200 Landcruiser VX for $87k (i believe) after trade-in.
Noone wants a Jetta to start with, they want golfs. Secondly, the 118tsi was one of the worst engine VW have produced. Op has a golf R, which is great and saught after.
Edit - your parents also had the crap 7 speed DSG.
Personal opinion but I thought the 118TSI engine was pretty dang nice. When you put it in sport and gave it a boot, it performed quite nicely, and fuel economy was very nice.
Yes, just fantastic until it melts a piston.
@brendanm: That sounds like a good trick. I haven't really researched that engine, but does it have a problem with detonation and heat?
@AdosHouse: They ran them extremely lean for economy. Melted pistons. So common VW replace them out of warranty if you ask nicely. 7 speed DSG also prone to clutch shudder and other issues. All round a terrible combination from a reliability standpoint.
@AdosHouse: Partially, they are also oil burners due to low ring tension, and very short piston skirts.
@brendanm: I see.
It was good idea of an engine, but seems the implementation was shit. Like I said, it went pretty hard for a 1.4L engine, but if reliability isn't there than it has all gone to waste.
VW really took a hit on thier value with the whole emission cheating scandal. Is the red book any different ?
Try shopping around insurance companies - you should check every couple of years that you are getting a good deal still.
From experience you can insure your car at a lesser value than the market value but not the other way around. You can always get a second quote else where for a higher value.
Thanks for the replies.
I've had a look around and all the other insurance companies except Shannons have roughly the same max agreed value of $20k so I guess there's not much room for negotiation. If jimbobaus is right though then there isn't much point to this. Just seems unfair that if someone else was at fault in an accident and my car was a write off then I'd be paid out much less than what the car is worth which means losing a lot of money. Going off the carsales ads that come and go for this model, I can confidently say I would be able to sell for at least $25k at the moment.In that case, why not go for a market value policy so that you can argue your case if the car is written off?
Only risk here is that the car is written off at day 364, and the market has tanked to $15k (for example).
Market value policy would mean a lower premium but I feel like if I tried to argue that my car had a higher market value than they've stated after an accident, then they'd simply give me the same answer as now: 'We go of glass's guide, so you'll get a 15k payout'
You wouldnt need to accept their first/second/third/any offer. I've heard of people taking the "what is market value" argument to the ombudsman, after the insurer has denied to up their offer based on proof of market value from ads for similar cars (Carsales, Gumtree, etc.)
I'm not sure if it's still the case, but NRMA (IAG) used to let you argue your case for a higher agreed value if you could prove it. ~2014 I got them to go $5k above their max for a Toyota 86 (mods, etc.) - the underwriting team were the ones who could approve it. From memory, it was only $40/year more for the extra $5k.
Edit: not advocating market value, but possibly an option you can explore.
@ol mate: I'll have a look into the market value side cheers. I did talk to the underwriting team indirectly through the regular racv rep on the phone, stated all my modifications totalling $6k, factory options, low kms etc. but yeah unfortunately 20k was the highest they'd go
if someone else was at fault in an accident and my car was a write off then I'd be paid out much less than what the car is worth
If someone else is at fault your insurance policy doesn't come into it. Your insurance company will chase theirs for as much as is reasonable. The only reason they wouldn't go for the maximum they can is if you're both insured by the same company. In most cases, it's not a write-off anyway.
Oh is that how it works? I was reading some other posts and someone was saying that in this event, the at fault party's insurance usually pays out the market value and your own insurance company is left to pay the difference between market and agreed value
If your agreed value is above what is reasonable for your vehicle then sure. But as you've found they'll absolutely gouge you for that insurance if they do.
Theoretically, the person that hits your car is liable for all the damage they cause, regardless of what their insurance covers. If you can prove your particular car is worth the agreed value then there's no reason why you couldn't pursue them for the full amount.
Where you'll run into trouble is if the value is unreasonable and is just something you've agreed, in which case, as others point out, might cause even your own insurance to have a 'get out of paying clause'. This is basically to stop people turning a significant profit on writing off their cars, which you can imagine isn't the sort of motivation insurance companies want.
Since it's not worth much, crank up the boost and enjoy til the engine pops :D
3 months till I'm on my fulls so will go ham then :D
I know there's the option of going with another insurer but to get it covered for $30k+ I'd have to pay triple the amount I'd be paying with RACV.
sounds like you've been given the take it or leave option.
3 months till I'm on my fulls so will go ham then :D
If you are on your Ps, this may affect your insurance situation. What is your premium?
Premium is currently ~$1k. It's much cheaper because my dad is also listed on the policy and he's a long term member
I have some background knowledge of now insurance pricing works, generally because premium is directly linked to the market value of the car, the market value of the car tends to be on the up side already.
if they allow you to put it up freely, that could contribute to moral hazard - i.e. Hyundai excel auto combustion phenomenon in the 90s… whereas you will burn your car and get a pay out - rather than sell it with a much lower price.
Just like your own home, the owner usually thinks that it worth more…. than the actual market fire sale value. - in automotive terms - the auction price.
I'm not sure that my experience would translate well to your situation, but I've been in a similar boat. My partner purchased a Toyota Hilux and replaced the tray on the ute with a purchased, second hand, custom build workshop body. I did the same ringing around as the general insurers would not go beyond the market value of the vehicle, despite the considerable replacement cost to us should the vehicle be a total loss.
I ended up going through an insurance broker who was able to come up with a much more appropriate policy for his situation at much the same cost as we had been quoted.
I was genuinely sad about it though as he had just had a claim for his previous vehicle which was a total loss and the insurer were fantastic so we would have liked to stay with them, but we weren't happy with that level of risk.
Good luck finding a policy that suits you.
Suncorp lets you choose whatever value you want (within reason). I'd be lowering rather than increasing, to reduce the premium. Yeah, I'll regret it if I write off the car, but what are the changes of that? It's going to be the worst day of my life anyway, so why not regret the financial decision too. But if that day never happens, I'm winning :)
I also went for increasing the excess to the max, but got in a lot of trouble from my wife when we claimed for hail damage. So we paid $1500 instead of $800 - but we've saved that in premiums so I'm still right just won't be saying so.
Unfortunately Suncorp won't insure me because I'm U25 but will look into them next renewal thanks. I maxed out my excess too @$2k, will definitely regret if I am cause of accident + write off :')
I'd be happy with the lower valuation too then. Rejoice in lower premiums. There is only 1 scenario that you would regret it, and in the hopefully unlikely scenario it ever happens, you've have bigger regrets on that day than that your payout is a little less.
A little off topic, but anyone here has experience with the insurance car replacement policy for new vehicles..?
I bought a comprehensive insurance recently for a new car, as they have the new car replacement policy if my car ever got written off in the first two years under any unfortunate circumstances, thinking it will give me the added peace of mind.
It's based on market value though and there's a measly 40,000km limit for the maximum covered milage. With all the flood and storms happening lately around my area, I'm really worried if the insurance will somehow find a way to get away from honouring this or giving as minimal payout as possible if I ever need to claim this next time after reading this post…
Suncorp gives new for old for first 2 years - I don't think any km limits?? You can upgrade that to 7 years, but the premium increase is pretty hefty.
How often do you write-off a vehicle anyway? The chances of it happening within 2 years seems pretty slim to me - I wish I could get a discount to take it off.I guess 7 years gives you a much better chance of claiming, but I'd rather save the premiums and not hope my car is written off.
(Let's face it, in that 7th year you'd be "accidentally" stalling on rail crossings, right??)
I think you need to read the insurance policy carefully. I have read a few and all had words to the effect of "insure for agreed Value, but not exceeding the market value."
In determining market value, most insurers take halfway between the wholesale price and a dealers retail price for a vehicle in a saleable condition as a starting point. Some allowance is made for options but not as much as most people think. Low kms and below average wear/tear will push the price to the top of the range. If the vehicle is not in saleable condition, the cost of repairing any damage, faults, excessive wear is deducted from the calculated value.Q:Is it worth going for comprehensive insurance when car value is 4k?
The insurer might consider an adjustment to the agree value of you can show other insurers are offering a higher amount. But agreed value is not usually worth the hassle. Insurance policies in Australia have pretty loose terms When it comes to agreed value that benifet the insurer. They have so many conditions which allow them to pay less than the agreed amount and almost always end up paying market value anyways (or market value plus a % but almost always less than the “agreed” value”
Agreed value is you and the insurer agreeing on the value of the vehicle at time of the renewal it’s almost never a garauntee that’s how much you will get it the car is written off etc.