Bought a new car for the first time in my life 12 months ago due to the crazy 2nd hand market prices making it very simliar.
When I got the car insured, I insured it with Coles Insurance. They have a policy where "If we assess your car as a total loss within the first 24 months of its original registration We will: replace your car with a new car of the same make, model and series (subject to availability within Australia)"
Ok that's great, except when the latest renewal came in, I noticed the price of the insurance had jumped by $100 (classic). When playing around with their insurance, I can set the "agreed value" of the car lower than what I'd normally be comfortable with, but it significantly reduces the premium. If I have cover to replace the car with a new car if it's totaled anyway, what's the risk in doing this?
Would they then refuse to increase the value next year?
If it's stolen, they might pay me out the lower amount?
I don't think they'd be able to claim they can't replace the car with a like for like model as it's a CX-5 and MY22 has the same model (although more expensive).
If you set a lower 'Agreed Value', you no longer have the new car replacement cover and the lower 'Agreed Value' is what you'll get if your car is a complete write-off from an accident or theft.
'Agreed Value' is capitalised because you'll find its definition in the PDS'. The new car replacement cover comes under 'Market Value' cover.