Would You Rely on NRMA New-for-Old Car Replacement and Pick Lowest Possible Agreed Value to Lower Your Premiums for a RAV4 2020?

y2k on 07/08/2020 - 09:25

Who has experience with dealing with NRMA's car replacement team?

About to take out comprehensive car insurance for a new RAV4 hybrid with the NRMA (for some reason, the cheapest for me) and need to select market value, or pick an agreed value. The policy includes a new for old replacement within the first two years, which made me wonder why I wouldn't just select the lowest possible agreed value (which is way less than market value) to minimise my premiums.

I called NRMA and the drawback is that if the NRMA can't find your exact car on sale in Australia (including the year!!), they'll pay it out - so if I've selected the lowest possible agreed value, then obviously I could lose thousands of dollars compared to if I'd picked even market value.

The RAV4 is the top selling car in Australia (this month) and is unlikely to be discountinued in the next two years - BUT it has had well documented supply issues and 6 month plus wait times. COVID could become a huge problem too in the next year or so.

Would you feel nervous in my situation entering the lowest possible Agreed Value to minimise premiums (about $150 cheaper per year)

Automotive

Comments

  • MS Paint on 07/08/2020 - 09:26

    Need a poll.

    For $150 not worth the risk. How much are the hybrids?

    • y2k on 07/08/2020 - 09:30

      About $45-47K

      • MS Paint on 07/08/2020 - 09:31
        +5

        Yikes. For a rav-4. Crazy days.

        • theHMASfriendship on 07/08/2020 - 10:22
          +1

          Yes these are certainly trying times.

        • mubd1234 on 14/08/2020 - 19:28
          +1

          A 2020 RAV-4 is NOT the same beast as a 2001 RAV-4.

          The 2001 RAV-4 is a subcompact, fun SUV which can be taken off road.

          The 2020 RAV-4 is a mid to full-size SUV which is designed for family hauling. It's almost as big as a Kluger these days.

          The size bloat on cars these days is astounding. The fact that Toyota can continue to get away with categorising the Camry as a mid-sized sedan when it is BIGGER in many aspects than the old Falcons or Commodores of yore is stupid.

          Same thing with VW - the Polo is now the same size as a Golf, yet it's still classed as a 'subcompact' car.

          The VW Up is physically bigger than the original VW Golf when it arrived on our shores here in the early 1980s.

          • spackbace on 14/08/2020 - 20:33

            @mubd1234: FWIW, the current RAV4 is 5mm shorter than the model it replaced, and only 1-2cm wider

            Just chill!

  • y2k on 07/08/2020 - 09:27

    The 2 year new for old seemed to make the agreed value redundant for the first two years, but it's not so simple based on my calls with NRMA this morning.

    While it's the top selling car in the country and will likely continue to be sold, I'm worried that its well documented supply issues and esp a COVID19 impact on the supply chain might mean NRMA decide they'll just pay me out - which would lose me thousands if I select the lowest agreed value.

    Worth the dice roll to keep my premiums down?

    • MS Paint on 07/08/2020 - 09:29

      Is this comment the tl;dr

      • y2k on 07/08/2020 - 09:31

        The description came up blank after I published and I panicked and that a glitch meant only the headline was published. Sorry for the dupe.

    • k-rokfm on 07/08/2020 - 09:53
      +1

      Im confused at what this means

      I called NRMA and the drawback is that if the NRMA can't find your exact car on sale in Australia (including the year!!)

      Why would they need to be selling your year car? Surely in 2 years it cant be expected that they would have old stock of your year model?

      For $150 i would just take the hit then not have to worry about it

  • [Deactivated] on 07/08/2020 - 09:28

    For $150 lol, good luck.

  • nephilim on 07/08/2020 - 09:31

    Lowest agreed value would be toyota's trade in price? still be a bit.

    • y2k on 07/08/2020 - 09:40

      There are some sweet hybrid and PHEV SUVs in the US - but I doubt we'll see them here in the next two years. I'm a bit pessimistic about whether we'll see innovation during the next 24 months

  • Euphemistic on 07/08/2020 - 11:36

    Choose your pain. Higher premium now, or lower payout later.

    Presumably if you pick a low agreed value now the longer you keep the policy the lower the value drops - it’ll drop in line with the depreciation expected of the vehicle, it won’t hold the same value forever more.

    • y2k on 07/08/2020 - 12:44

      Yes, NRMA let me know. I can increase the agreed value in future though ie the third year after the New For Old disappears. Basically I just need to bet that COVID19 won't bring Toyota RAV4 supplies to a standstill - and also of course, that I won't total my car!

  • spackbace on 07/08/2020 - 13:04

    Supplies are actually plentiful now, we have available stock coming in at the end of this month for Cruiser.

    Have you financed the car or cash?

  • Quantumcat on 07/08/2020 - 14:46

    I would recommend GIO. Got a new car this year due to the Canberra hail storm (2018 kia cerato for 2020 kia cerato). Waited a long time but people I know with nrma were still waiting many months after I was to even get their car assessed. I wouldn't trust them to be capable for finding a replacement car for you

  • y2k on 10/08/2020 - 06:30

    Hi all, I went with NRMA in the end. GIO was quite competitive but I changed my parameters for all my quotes because I remember I had made 1 claim in the last 3 years (not a car accident - just a minor garage prang). NRMA's quoted premium only went up a small fraction - while GIO's quoted premium then rose by over 20%. Still, I need home insurance soon and currently GIO is my CTP provider to that 10% discount looks tempting, and the coverage is pretty good value too.

    Thanks for your all your feedback.

  • blutek on 10/08/2020 - 21:03

    Guessing you didn't select repairer of your choice.

    • y2k on 13/08/2020 - 19:43

      No, because I'm in Bondi Junction and I can see there's a repairer of choice walking distance from me. There is one chap even closer who usually does my pink slip but not sure if he can do major smash repairs and panel beating.

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