Comprehensive Car Insurance - Huge Difference in Vehicle Valuation between Companys

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  GG57 on 22/02/2021 - 14:50

  Yes, it is pretty common.
  A bit like buying something from David Jones vs. Target / Kmart.

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  vinni9284 on 22/02/2021 - 15:12

  Normally there is a min and max vehicle value scale in your quote. And that is limited. The higher obviously increases your premium.
  If you wish to increase the value of your car that is higher than the max of the generalist insurance companies, you have to go with Shannons and the like

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  beeawwb on 22/02/2021 - 15:13

  I can't say for certain, and I'm not really able to go in to much more detail because of the industry I work in, but…

  I wonder if QBE are accounting for the fact that over the last 12 months prices for used vehicles has gone up significantly, with Hilux being one of the models leading the way. Your thought that QBE is comparing to "actual" prices vs Redbook prices might have merit.

  • 

    vinni9284 on 22/02/2021 - 15:17

    +1

    IMO they haven't because the market will correct and the value of used vehicles will fall. Especially after March when government supplements stop. It's like borrowing for a 2018 model car that is currently 95% cost of new. Will banks use that as security? No because banks want to get their money back if you default and they know it was ~ 30% cheaper 8 months ago.
    I am not affiliated with both

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  Xyzzy on 22/02/2021 - 15:17

  +4

  I'm thinking that my best option would be to go with a reputable company that offers market value coverage, at the best rate, and then if I do need to make a claim, argue for a settlement based on what similar vehicles are selling for at the time.

  I prefer to have a value locked in when I'm buying the insurance, and can then do a valid comparison of the various quotes. Can't imagine arguing with an insurance company after you've had an at-fault accident would be productive, when it's in their interest to lowball you and when they've already got your money.

  Would be interested in hearing if anyone has successfully argued for a higher settlement than was originally offered in such a situation.

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  picklewizard on 22/02/2021 - 15:31

  Don't ever get insurance for AAMI. You get what you pay for. CBF going into detail but over 10 repairs were required by three different shops before they got it right.

  Fine for 3PP only. Don't insure anything you like with them.

  • 

    vinni9284 on 22/02/2021 - 15:35

    Did you go through their Capitol Smart junk repairers?

    • 

      picklewizard on 22/02/2021 - 16:22

      Woods (now GoRapid), but I imagine the experience was similar!

      On the final attempt (and huge kickoffs from my side) they promised to send it to their "prestige" repairer, who did an absolutely faultless job first go. That was literally AAMI's 13th crack at it though - from a low-speed parking bingle!

      Interestingly I had another car repaired at GoRapid under 3PP uninsured driver protection, who also did a very good job. Maybe they got their shit together and changed named to shed the bad rep?

      • 

        mskeggs on 22/02/2021 - 16:34

        +1

        Not discounting your experience, but it is a 16yro ute in this case, so maybe a bit less fussy about repairs.

        • 

          picklewizard on 22/02/2021 - 19:24

          @mskeggs: It went from paint being a completely wrong colour, to screws missing from panels and trim pieces, to ridiculous amounts of overspray, to half-arsed lets-not-remove-any-trim-pieces painting (even through screws were missing from the trim pieces they didn't remove to paint under) to the worst welding I've ever seen, to the car being returned with over-polishing damage to panels that hadn't even been painted.

          I'm leaving stuff off here too, but oh my god - never again. Two or three goes is just bad luck (despite being with AAMI) - thirteen goes is complete systemic failure.

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  AutomationGuy on 22/02/2021 - 15:34

  A couple of years ago I insured my 2000 MX5 with QBE because they valued it up to $12k where as AAMI / RACQ etc assumed the value to be about $5k (it was worth well over $10k stock).

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  Euphemistic on 22/02/2021 - 18:13

  I saw Hilux and wondered why the value was so low. Then I saw 2wd and V6 and wondered no more. It’s the 4wd versions that are attracting silly prices.

  • 

    picklewizard on 22/02/2021 - 19:26

    What's the bet half of them never get four-wheel driven either

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  Tleyx on 22/02/2021 - 18:20

  One company has it as a 4wd and the other has a 2wd thats why its different

  • 

    Euphemistic on 22/02/2021 - 18:55

    Seems to check out. Cheapest 4x4 on car sales $14k. Cheapest 2wd is $6800

    • 

      frugalferret on 22/02/2021 - 20:14

      Nope, both have it as 2wd. Quote based on vehicle rego lookup.
      Similar vehicles are advertised from the $11-16k range (currently) - https://bit.ly/3ki98Ph

      Out of interest I tried the same vehicle as mine, but 4x4:

      Note - Excess set to $650-700 for all quotes (previous 2wd and this 4x4)

      • AAMI insurance quote is $238/yr for min $5,850 value, and $470/yr at maximum value of $10,140
      • QBE offers $646/yr for their minimum value of $13,005, and $910/yr for their max coverage of $18,785

      So it looks like QBE is a lot more generous with their valuations, and closer to real world prices. Every other place I tried had similar values to AAMI.

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  iDroid on 22/02/2021 - 20:54

  +1

  Each insurer use their own algorithms for determining their insurance price and offer. They use many input factors and a custom way those factors effect what they'll offer and how much they'll charge.

  There is no set way to calculate their risk, your car value, (insert 10,000 other things) - they use complicated algorithms (that's usually implemented in software and calculated by computers) and that spits out what they can offer. Hence very different quotes from each insurer.