Weird insurance business

[Skylarking]

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...

Ron, an insurance company doesn’t calculate the market value. An insurance company can only make a settlement offer, sometimes purely on bluff based on their skewed view driven by their own self interest...

The used car market itself (the buyers actually) defines what something will change hands for. And sales adds are indicative of the actual sales price.

It’s an important distinction to make (settlement offer verses what the market dictates is a selling price) otherwise one can be in the wrong mindset when dealing with these companies/clowns.

 

[Ron Burgundy]

Ron, an insurance company doesn’t calculate the market value. An insurance company can only make a settlement offer, sometimes purely on bluff based on their skewed view based on their own self interest...

The used car market itself (the buyers actually) defines what something will change hands for. And sales adds are indicative of the actual sales price.

It’s an important distinction to make (settlement offer verses what the market dictates is a selling price) otherwise one can be in the wrong mindset when dealing with these companies/clowns.

Well, they make offer based on something...
They need to consider some factors before they make the offer...
NRMA talked about Redbook, Glass? , adds, condition and milage etc.. being what they consider...

Interestingly though...I asked if they can tell me what they think market value is for my car so i can decide market vs. Agreed value and they were not willing to do this...

They pointed me to specialist insurers...even though we have 2 cars insured with them, 2 ctps, house and contents, 2 roadside accounts etc. Pretty unhelpful given the thousand we spend with them over last 14 years and never claimed anything...

 

[Skylarking]

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.

For an agreed value policy, such market movements aren’t really relevant as it’s all define within the contracted insurance docs. You could still argue but it’s an uphill battle you‘ll likely loose.

For a market value policy, you always argue and Redbook has little relevance if the current sales data reflects something vastly different.

 

[Skylarking]

Interestingly though...I asked if they can tell me what they think market value is for my car so i can decide market vs. Agreed value and they were not willing to do this...

Obviously they don’t want to tell you that currently a market value policy will be cheaper for you and may work in your favour in this climate of increasing car prices...

Directing you to a specialist insurer which allows you to choose an agreed value, maybe $5-10k above where the market currently is, may work better for you as you won’t have to negotiate after a crash but it’ll cost more in premiums (and NRMA won’t have to deal with you - I.e. they don’t want your business).

Again, if Redbook, Glasses guide or whatever (analytics firm that publishes periodically) is lagging the market, current sales adds should always trump what is written in a dated publication. There is really no argument for them to counter such actual current sales adds data...

 

[Ron Burgundy]

For an agreed value policy, such market movements aren’t really relevant as it’s all define within the contracted insurance docs. You could still argue but it’s an uphill battle you‘ll likely loose.

For a market value policy, you always argue and Redbook has little relevance if the current sales data reflects something vastly different.

In my case redbook data works in my favour though... 47-52K private sale vs 39k max agreed value...

 

[mpower]

just ditch NRMA already sounds like they want to play too much hardball with you.

 

[Skylarking]

In my case redbook data works in my favour though... 47-52K private sale vs 39k max agreed value...

Yes, and obviously your car is meticulously maintained which must put it at the top end of the private price range. Then there is the fact that dealers also sell at a higher price than the RB private range so that’s also in your favour. And still the RB data may be outdated as the market has moved higher...

Add something for quality factory mods like the brakes you’ve done and you’ll be at a higher valuation that the $54k, all for $200 less premium for the market value policy as compared to the under done $39k agreed value policy.

I don’t understand the hesitation unless you think the value of quality commodores will plummet over the next year (which is always a risk).

 

[Ron Burgundy]

Yes, and obviously your car is meticulously maintained which must put it at the top end of the private price range. Then there is the fact that dealers also sell at a higher price than the RB private range so that’s also in your favour. Add something for quality factory mods like the brakes you’ve done and you’ll be at a higher valuation that the $54k at $200 less premium for market value than the under done $39k agreed value policy.

I don’t understand the hesitation unless you think the value of quality commodores will plummet over the next year (which is always a risk).

I am not hesitating with that...but whether I should go nrma market value vs Shannons agreed value at 50k

The price difference is significant between these two... $600 bucks...

I guess i just answered my question

 

[Skylarking]

Just don’t have a crash and you don’t even need insurance saving you even more in premiums (just kidding)

 

[Derekthetree]

My insurance is due in May, I probably undervalued it on an agreed value last year, and went with a limited km policy. Not looking forward to the undoubted Covid tax being applied. Lots of companies won't touch it because "performance car" despite having the same engine as the Redline.

There is probably merit in going for market value and arguing later, given what you can show them the market is doing. Someone on here just bought an SSV wagon for $50k+. Pretty poor that they can't give you an example market value quote estimate right now.... Bloody insurers