Used Car values rising - Time to rethink your insurance?

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Norrie
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Used Car values rising - Time to rethink your insurance?

Post by Norrie » Thu Sep 09, 2021 10:24 am

Chatting over lunch to the owner of a D5S, he was explaining how he had looked at a number of used cars and how the prices have risen. This got me thinking abut declared values on Insurance policies and if one should reassess their own declared value.

Fortunately for me I have an agreed value on my B7.

But for those who do not it may be time to re-evaluate, I dont imagine that if for example someone who said a car was worth say 10K, but in the market now its 13K, the insurer would pay market value as opposed to declared value?

I am no expert, so wonder what others feel?
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Charles
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Re: Used Car values rising - Time to rethink your insurance?

Post by Charles » Thu Sep 09, 2021 1:55 pm

Good point, Norman!

I have an agreed value with Admiral on my B3S and every year we review it and set the new one. Typically this has been by increasing it by £500 each year which has been pretty much in line with where prices have been. The important point is that this is done routinely every year as part of the renewal process.

As for what they would pay out - if you have an agreed value then that is the figure, even if it is below market value at the time because you have forgotten to update it. If the agreed value is above market value then that is why you pay a slightly higher premium in order to have an elevated agreed value.
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Re: Used Car values rising - Time to rethink your insurance?

Post by Frosty » Fri Sep 10, 2021 9:39 am

I keep getting pestered by we buy any car for the missus 1 series 125i, before we bought it I looked up the WBAC price and that showed £15,690 in April.

The car was up for £18,995 with a stacked option list and was in exceptional condition so be bought it after negotiating a discount. The latest WBAC valuation from this week has come in at £18,235 even against increased mileage etc - that is a hell of a jump in 6 months!
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Re: Used Car values rising - Time to rethink your insurance?

Post by PerryGunn » Fri Sep 10, 2021 10:14 am

Norrie wrote:
Thu Sep 09, 2021 10:24 am
Chatting over lunch to the owner of a D5S, he was explaining how he had looked at a number of used cars and how the prices have risen. This got me thinking abut declared values on Insurance policies and if one should reassess their own declared value.

Fortunately for me I have an agreed value on my B7.

But for those who do not it may be time to re-evaluate, I dont imagine that if for example someone who said a car was worth say 10K, but in the market now its 13K, the insurer would pay market value as opposed to declared value?

I am no expert, so wonder what others feel?
If you don't have an agreed value policy, the insurer has to pay 'market value' in the event of a total loss - sometimes it can take a bit of haggling as the first offer will usually be towards the low end of book value.

They can't pay less because you said you thought it was worth, say, £15,000 at renewal and the prices have increased in the meantime - in any case, your estimate at renewal is just what you think the car is worth, it's not an 'expert opinion', and most people tend to over-estimate the market value anyway.
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Re: Used Car values rising - Time to rethink your insurance?

Post by churchie386 » Sat Sep 11, 2021 8:49 pm

Frosty wrote:
Fri Sep 10, 2021 9:39 am
I keep getting pestered by we buy any car for the missus 1 series 125i, before we bought it I looked up the WBAC price and that showed £15,690 in April.

The car was up for £18,995 with a stacked option list and was in exceptional condition so be bought it after negotiating a discount. The latest WBAC valuation from this week has come in at £18,235 even against increased mileage etc - that is a hell of a jump in 6 months!
The used car market is high, of that there is no doubt. Long lead times on new cars and lack of used cars* filtering into the market have caused trade, dealers and the public to accept higher prices. Apparently this could be the norm for a while. I heard of a Porsche dealer recently, upon the customer signing on the line at collection of their new Macan, flippantly offering to buy the car on the spot for more than what had just been paid for it.

(* first manufactures built less cars as new WLTP emissions testing and certifications came in; then market slowed due to Brexit concerns; then came along the pandemic which forced factories to temporaily close; and now a worldwide semiconductor shortage.)
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Norrie
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Re: Used Car values rising - Time to rethink your insurance?

Post by Norrie » Sat Sep 11, 2021 10:36 pm

Not an ALPINA but my son bought a 4 door smart car 18 months ago from a dealer. Did about 5K miles and got back yesterday 6250 from we buy any car. Original purchase price 5850.
E65 B7 4.4 V8 supercharged No 106 (1 of 11 B7 built for UK)
F22 M235i - everyday driver
E 39 523i sold May 2023
E92 325i - written off by X5 I was not driving!
E92 335D Twin Turbo - sold to Sytner Alpina
E 60 - 525D new - sold to Cooper BMW
E 60 - 530D new - sold at auction
E 39 - 520i new - sold at auction
E 30 - 316i new Touring - sold at auction
Audi A6 2.5 Tdi had 2
Audi Coupe GT 1986 new
Mitsubishi Gallant & Sigma
Honda accord 2.2 coupe
Ford Escort 1.6 worst car in the world

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Re: Used Car values rising - Time to rethink your insurance?

Post by Wellsy » Mon Sep 13, 2021 10:45 am

I've not long renewed my insurance with A-Plan and at the renewal they advised that the valuation had changed so they wanted to review it. To my surprise they had increased the valuation by £1000.
I have also just bought a second had car for my mum and had been watching car prices over last few months, they have slow been creeping up. I also noticed stock is an issue at the moment. Most garages I visited had 40% to 50% of their normal stock of cars.
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Re: Used Car values rising - Time to rethink your insurance?

Post by Bob » Mon Sep 13, 2021 3:18 pm

More evidence of rising prices/demand, our Kia Picanto shopping trolley has apparently risen from £6,765 on 30 Aug to £7,360 today!

At £300 a week, in another couple of months it'll be worth what we paid 3yrs ago for a brand new car with discount & on 0% :dance
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