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Weird insurance business

Forg

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ATO's been paying a lot of people for a really long time trying to achieve that, I don't think I'm capable of improving that any more ... :)
 

Skylarking

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@Forg, one could express their distain for our system of taxation in all sorts of ways but for you to shout out THE SKY IS FALLING is a little dismissive of other views.

From my perspective, simply put, I don't like yearly taxes on stuff I've previously bought, with the income I've earned and which I've payed tax on. I don't like it on my cars, on my home or anything else I own. Don't like it one bit... especially when one hears of all the money multinationals avoid in tax via their illegal but unchallenged behaviours.

And the registration charges around aussie states are a hodge podge of bullshite taxes..

The tax system in general is a mess and needs a complete redo, to favour natural people rather than ABN numbers and obscure failed views of trickle down economics. Then may be we won't have these obscure taxes like the silly "road rescue and road road safety contribution" taxes.

But whatever is done, I suspect pollies with their noses in the trough will always exist... it's nore certain than death and taxes :p
 

Ron Burgundy

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Like I said in the beginning, my car is now covered for $39200 which is Max agreed value with NRMA.

I think market prices are higher now that my max agreed value; plus I would save almost $200 on insurance premium.

I think it would cost me 50K to replace my car. Redbook says $47,400 - $51,900 private price guide.


$40,600 - $45,100 for trade in


I am aware an assessor for insurance determines market value, but how is this calculated ?
What happens if the customer does not agree with their valuation ?

Would it be smarter to insure it as market value?
 

Forg

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It'd be a really odd situation where you'd get more for a Market Value policy than the highest Agreed Value you could arrange at the same time.
If Redbook says $47k-$52k, it's really hard to believe NRMA won't increase your Agreed Value, as RedBook (or Glasses') is where they get their values from.

As for how the Market Value is determined ... they go with the cheapest way to generate a value at first, so that's going to be using the same database used for putting Agreed Values on policies, assuming an average-condition car. Then if the policy-holder disagrees they'll use a valuer to take into account all the variables ... the valuer is usually au fait with the current price-movements in the market.

If you haven't called NRMA to up the Agreed Value since September (when this thread started), definitely give it a go now.
 

eman1

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My Ssv redline value went up for renewal this year, was 43500 last and has gone to $55500 this year.

happy enough as it’s more that what I bought it for brand new in 2016 and the premium stayed the same.
 

Ron Burgundy

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It'd be a really odd situation where you'd get more for a Market Value policy than the highest Agreed Value you could arrange at the same time.
If Redbook says $47k-$52k, it's really hard to believe NRMA won't increase your Agreed Value, as RedBook (or Glasses') is where they get their values from.

As for how the Market Value is determined ... they go with the cheapest way to generate a value at first, so that's going to be using the same database used for putting Agreed Values on policies, assuming an average-condition car. Then if the policy-holder disagrees they'll use a valuer to take into account all the variables ... the valuer is usually au fait with the current price-movements in the market.

If you haven't called NRMA to up the Agreed Value since September (when this thread started), definitely give it a go now.

Thank you.
Their web site still only gives me $39200 as max agreed value.
I will call them to discuss as I think the car is underinsured....
 

Ron Burgundy

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I had someone really honest on the phone and looong story short they felt specialist insurance would be more suitable in my case than what they are offering...

I am curious what max agreed value will be in September when it's due for renewal...

Shannons quoted me 2k to insure it for 50K. No questions asked...

Two of their people said OTR and tune are no issue for them
 
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Skylarking

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Like I said in the beginning, my car is now covered for $39200 which is Max agreed value with NRMA.

I think market prices are higher now that my max agreed value; plus I would save almost $200 on insurance premium.

I think it would cost me 50K to replace my car. Redbook says $47,400 - $51,900 private price guide...

I am aware an assessor for insurance determines market value, but how is this calculated ?
What happens if the customer does not agree with their valuation ?

Would it be smarter to insure it as market value?
If you have a market value policy and your car is written off, then the payout offer is really just that, an offer. So you have to consider it a negotiation process ;) With an agreed value policy, the negotiation was done up front:cool:

As such, with market value policy, when they offer some payout based on what they consider their valuation, then you’d counter with the info from Redbook which states $47,400 - $51,900 private price guide. Simply presenting them with this info should be sufficient to have them modify their offer. Then you’d counter with the Redbook price being “private sale” without ORC’s or warranty and that car dealers want more, much more these days, especially for cars that are in similar condition and mileage to yours. Providing a few dealer adds may be enough to get another better counter offer...

So far, it shouldn’t be much effort especially if your car is common and there are examples for sale that you can reference. Sometimes some internal process limits get in the way and the claim needs to be escalated but for the most that makes no difference other than lengthening settlement times.

Where it gets difficult and frustrating is in the case of a rare vehicle without any recent sales data or no similar vehicles available for sale. In such cases, Redbook price data Isn’t meaningful. In the current climate, Redbook data (we see) is probably heavily lagging the market reality (which has seen commodores increase in value rather quickly when normally they’d be dropping in value). But if similar vehicles are available for sale, then such info can counter historic and lagging Redbook data and should see things move along in your favour.

The only down side with market value is with rarer vehicles where it can take a long time to settle a good payout. So most simply prefer the ease of negotiating an agreed value up front which speeds the claims process which is very important if the write-off is their only real means of transport :D

So I t’s not an issue of smarter, just what suits you. I have more than one car so lengthy settlement times aren’t an issue and agreed value suits me.

Have you tried an insurer other than Shannon’s (I’ve found them to be expensive)? Seems NRMA doesn’t really want your business.
 

RevNev

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It's likely a unique situation most insurance companies rarely address if ever, where market values increase and may take them time to catch on to the fact that VF's have increased in price dramatically since Holden's closure.
 

Ron Burgundy

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It's likely a unique situation most insurance companies rarely address if ever, where market values increase and may take them time to catch on to the fact that VF's have increased in price dramatically since Holden's closure.

When I asked them if max agreed value can be reviewed for my particular model they basically said it sounds like I need specialist insurance....and they cant do anything about the fact that the market value appears to be at least 10k more than the max agreed value.

They also could not tell me in detail how would they exactly calculate market price so I know if that's better deal for me...
 
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