GIO Platinum Car Insurance - Payout

Lmike-LKV on 05/01/2023 - 11:23
Last edited 05/01/2023 - 13:18 by 1 other user

Hello everyone,

I am currently dealing with a car insurance claim with GIO NSW for a vehicle that has been written off in an accident (fortunately, no one was hurt). I have the platinum car insurance policy. My car was a Volvo C30, made in Belgium but is no longer made.

I am wondering if anyone has any advice on my entitlements when speaking to GIO about the replacement car. They're offering me an 2022 XC40 or a payout figure of $70k. I am wondering if it is appropriate for me to request that the replacement car be made in Europe rather than China due to manufacturing controls etc. How can I go about making this request, and what are my chances of success?

Additionally, I am wondering how we can objectively judge which car is a suitable "like for like" replacement. What factors should be taken into consideration when making this determination? Could I reasonable ask for a different make such as a Merc A or GLA?

Finally, I am wondering if it is possible to ask GIO to cover the cost of a servicing package (5yr) that I had purchased for my C30. They've indicated that they only cover physical aspects of the car. Is this usually the go or could I make a case here?

Greatly appreciate any advice or guidance on these matters as it's my first time dealing with anything car insurance related.

Edit:
I should have been clearer, this is GIO's lifetime new for old platinum cover. I'm just trying to get what I'm entitled to, as we all are here on OzB.

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Comments

  • Brick Tamland on 06/01/2023 - 19:39
    +4

    Amusing how OP has had a windfall of sorts but is still unhappy with the outcome. It really is impossible to please everyone. Take the cash and just buy whatever you want. How hard is it…

    By windfall, I mean, the current entry level car from Volvo is a much more expensive car than what its replacing as Volvo has moved away from hatchbacks. If Volvo still had the C30 or entry level car the replacement cash offer would be way lower.

  • Willy Beamish on 07/01/2023 - 01:01
    +3

    This sounds like a boast if anything, question can't be legit considering that's an absurd payout for the age and kms of that car.

    What a no brainer decision.

    • OzBrogains on 07/01/2023 - 18:57
      +1

      What a no brainer decision.

      Fitting for the OP.

  • nightmarez3k on 07/01/2023 - 03:15

    The ops scenario appears to be fake. $70k for their crap car.

    Then he likes to play push your luck.

    It's like the movie Dumb and Dumber. GIO or Op.

    Well whoever gets the $70k will be less dumb.

  • Daddy Chill on 07/01/2023 - 07:24
    -2

    Whoever gave you that payout figure out an extra 0 at the end. Your car is worth 7K max. I'm going to do a Franco Cozzo and call GIO and wake them up to the mistake. They might give you a $50 voucher

  • cooni on 07/01/2023 - 09:53
    +2

    So many comments not understanding the policy. Lifetime new-for-old replacement. Stupidly good policy which costs not much more than their standard comprehensive policy which in my case was quite competitive in the market (cheaper than all of the major insurers). The main caveat is that you need to start the policy within 13 months of buying the car new, and maintain it as long as you wish to keep the benefit.

    I had my 8 year old Audi Q3 (100k+ km) written off. Market value of 20k, but that has no relevance to this policy. It was bought at the time with an S-Line exterior styling package which now doesn't exist on it's own for new Q3s. S-Line is now the top trim level so I was offered either a new Q3 S-Line or pay out. The pay out figure was the full RRP of a Q3 S-Line which is crazy considering you could walk into any dealer and get one for many thousands less than that. Needless to say I took the pay out.

    As an aside, the policy used to have an option for market value or agreed value for I don't know what reason. After calling their customer service to make sure I'm not missing anything, I set it to the lowest possible agreed value and saved a bunch more on the policy.

    • Brick Tamland on 07/01/2023 - 12:38

      I got a quote for mine and it won't let you select market value. Its not a bad offer in the current market with car prices skyrocketing up.

      I think most people understand it as normally an insurance company will pay on market value and its obvious that a C30 isn't worth $70k. The payout figure seems distorted due to enormous price increases and the OP's cheap Volvo no longer being a current model and replaced by a fairly expensive entry level SUV

    • OzBrogains on 07/01/2023 - 19:01
      +1

      I have a new for old policy and it's significantly more expensive than other policies without this benefit. The 'value' of the policy (to me) increases over time and the insurer knows this, hence they can keep increasing the delta (their premium cost compared to other insurers). I wouldn't be surprised if in a few years time my policy costs 3x more than other policies. The insurer has me by the proverbial and I have no choice but to accept it if I want to keep the new for old benefit, on the off chance my car gets written off. It's an interesting conundrum indeed.

      • Brick Tamland on 08/01/2023 - 14:35

        Exactly! You are locking yourself in to keep the new for old and you loose your only bit of leverage to get a better price.

    • Marty156 on 10/01/2023 - 12:29

      The agreed value is the max CASH amount you will receive IF you cannot agree on a replacement car. Else you will get a similiar make/model/series etc as you had.
      You DON’T get the cash value of a replacement car.
      Source: PDS

      • cooni on 10/01/2023 - 12:29

        This is not true for the platinum car insurance product (assuming you meet the criteria for the new for old benefit)

        • Marty156 on 10/01/2023 - 13:43

          My bad, as GIO is not available in QLD, I looked at my Suncorp PDS for similar product.
          With GIO Platinum, the policy is better than Suncorp's Advantages (Suncorp owns GIO).

          Seems like a wording difference that has a major impact on the cash value. (If not willing to accept replacement car)

          Platinum will give the highest of either the amount covered OR the reasonable replacement cost etc.
          Suncorp's Advantages will only pay the amount covered.

          GIO page 31 of the PDS
          Suncorp page 35 of the PDS

          • cooni on 10/01/2023 - 19:17

            @Marty156: Wow I didn't know this about Suncorp's product, thanks for pointing it out!

            (This time I've gone with Suncorp instead of GIO, so it seems it's indeed less juicy if I'm involved in another write off)

  • hasher22 on 08/01/2023 - 00:10
    +3

    OP pays 1.5k per year on top insurance, insurance gives OP a nice 70k payout…. wants more…

    I don't understand how you get a payout of 70k for a Volvo C30? Top price for a 2012 Volvo C30 is 20k on car sales.

    The top model for a 2012 C30 back on release is around $43,000, getting a payout of $70k is still winning and you can buy a very nice car, better yet, you can buy another brand and model to try something new.

    I would take the payout for sure. If you're not into cars, buy a used 20k car, 50k profit. Done.

    Am I missing something here?

    • Brick Tamland on 08/01/2023 - 14:37

      Yes. The OP has a new for old replacement. If the C30 was still a current car made by Volvo they would just replace it with that (probably with $50k odd). But now Volvo has switched to upmarket SUV's and their now entry level car is much higher value that a C30 so the OP's equivalent is much higher value which brings about the $70K. To be honest its just luck that Volvo no longer makes a little hatchback.

      • hasher22 on 08/01/2023 - 18:46

        Understood!

        IMO, even if the C30 was still a current model, OP is still winning with a brand new model car for 1.5k insurance per year. Let's be real, 1.5k is pretty average these days to pay and with the new for old replacement policy, seems like a very good price(?).

        Getting a XC40 is very nice, but 70k payout is even better.

        I mean, what happens if OP had minor damage and only needed repairs? OP would still have the C30 and not a new car or payout.

        Insurance is being very generous here even with the new for old replacement policy IMO.

    • cooni on 08/01/2023 - 22:46

      Just because it's a nice win doesn't mean you shouldn't chase more if you're actually entitled to it according to the policy.

      • hasher22 on 08/01/2023 - 23:30

        From what the thread is suggesting is that the OP is getting more than their fair share.

        Sure the car is discontinued but they are offering a way better car which is the the XC40 in general. Volvo doesn't have a lower model than the XC40, thus, I am assuming that's why they are offering that model. If Volvo had a lower model than the XC40 than I am sure the insurance company would offer that instead of the XC40.

        That's like offering a new model Toyota Corolla if the Yaris has been discontinued.

        Would have been a different story if Volvo released a XC30 model? And insurance offered that instead? Would OP be complaining they want a XC40 instead?

        • cooni on 09/01/2023 - 07:11

          The "higher" model would only be a suitable replacement if it indeed was better in every way. Smaller engine output for example could easily be argued is not better, and insurance agreed.

          Other things like build country are a bit more contentious, as are extras such as included servicing. These are the questions OP is asking, but most are having a go by saying a new for old anything is already good enough.

      • Brick Tamland on 09/01/2023 - 18:40

        Sure but its a win straight off the bat. You have to be pretty miserable to complain about this offer. I used to work in retail and I know first hand that you could transfer a million dollars into some people's accounts and they'd still be whining at you.

        • cooni on 09/01/2023 - 19:45
          +1

          I still don't understand why it's so hard to understand.

          Higher premiums have been paid the whole time, on the off chance something terribly bad happens. This is the whole premise of insurance. They promise new for old, like for like - if you're not getting that, you're getting ripped off. Why should you expect less, leaving more money in an insurance company's pockets?

          • Brick Tamland on 09/01/2023 - 21:19

            @cooni: I understand perfectly, what makes you think I dont?

            They cant provide on the promise for like for like… If they did they would provide a brand new C30. The whole reason $70k is on the table is because they cant provide like for like. I dont think its me thats doesnt understand.

  • mousie on 08/01/2023 - 12:05
    +1

    The purpose of insurance is to cover you for the insured event. In this case total loss of a car and like for like comparison.

    I think the offer is reasonable of 70k, or the car suggested that might be higher than the cars realisable value before the accident but that's reflected in the higher comparable cost of the platinum cover plus the consistency of your premiums paid over the cars life.

    Car supply is improving as opposed to covid which means you have choice and control. Having the cash means you are ready to go and in a bargaining position. You may get a deal through a car broker.

  • ass3ts on 08/01/2023 - 22:54

    Nothing really wrong with being opportunistic in this particular case with GIO.

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