Car Insurance: Should I Go for Market Value or Agreed Value?

baskinghobo on 10/10/2022 - 15:38
Last edited 10/10/2022 - 15:51

I am wondering which is better? I have a Mitsubishi Lancer VR-X 2008 Manual with 217km's on it. It also has a fair bit of sun damage on the roof and bonnet and some scratches and if I sold it where I live (Cairns) I think can get about $8k for it as another vehicle the same as mine was being sold for $10k with 192km's in Townsville on FB.

The market value for my vehicle is $2700 on Redbook but Suncorp offered me an agreed value of $5520. Strangely Suncorp is the only insurer that offered me an agreed value from their online quote system. If I go for the agreed value it will cost $140 extra compared to the cheapest market value comprehensive insurer I found which was PD insurance and you would think this would be a no brainer but the wording used from Suncorp is "maximum amount covered". Does this mean in the event of an expensive repair they can claim it as a writeoff and lowball me? In that case wouldn't I just be better off going with the market value since I am likely to be screwed going with the agreed value anyway?

Automotive Car Insurance Insurance

Comments

  • Euphemistic on 10/10/2022 - 15:51
    +3

    Market value, there’s a little room to negotiate in the event of an incident.

    (Your car isn’t worth $8k)

    • baskinghobo on 10/10/2022 - 16:00
      +1

      With such a low market value I am wondering if I should just get third party and self-insure since I can make that money back in 7 years or probably less if I shop around.

      • kerfuffle on 10/10/2022 - 16:02
        +1

        Just get third party then if you can afford to replace your car should it get written off

      • Euphemistic on 10/10/2022 - 16:24
        +2

        Only drop to third party if you can afford to replace your car out of pocket at short notice, or live without while you argue it out with another party’s insurer.

      • Donaldhump on 10/10/2022 - 20:18
        -1

        do you think you will crash in the next 7 years. if not don't get insurance.
        no diff to house flood insurance, its a gamble.

        • kerfuffle on 10/10/2022 - 20:24

          do you think you will crash in the next 7 years

          That's like asking how long a piece of string is. I certainly didn't have get T-Boned and have my car written off on my bingo card this year

          • Donaldhump on 10/10/2022 - 20:37

            @kerfuffle: well that's up to the other person to decide not me and that's what they are asking

  • bobbified on 10/10/2022 - 16:10
    +1

    It also has a fair bit of sun damage on the roof and bonnet and some scratches

    but Suncorp offered me an agreed value of $5520.

    When you sign up for insurance, one of the questions they ask is about existing damage. So if you don't declare that damage, even if it's an "agreed" value, you may have trouble getting that full amount in the event of a claim.

  • k-rokfm on 10/10/2022 - 16:26

    Go agreed value or just change to third party from what you’re saying. If you have a crash at agreed value you will probably only get $1500 back after your excess, it doesn’t really make it worth it

  • brendanm on 10/10/2022 - 17:16
    +6

    No one is paying $8k for an 08 lancer with over 200k kms that's in poor condition.

  • dtc on 10/10/2022 - 18:27
    +3

    Agreed value always.

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