Man of Honour
I once asked my insurance broker why they asked for the value of a car. He said he had no idea because any payout is based solely on the market value. I get the impression they just want to use it as a test of your truthfulness.
What easier to nick than all the key cloning we hear about. I get their is hidden factors but I think I should be rewarded for never claiming on my own insurance ever, never had a car stolen, damaged or damaged anyone else’s. Me driving a £1000 car is a choice, I could like millions of others, get a car on finance but I don’t see the value in it. Don’t get me wrong I’d like a newer, shiner, faster car but I don’t need one.
Just a little rant but I do think it’s not fair on someone like me and no claim bonuses are brilliant upto about 5 years, but after that it becomes negligible.
In my experience they won't pay any more than the value you state even if car raises in value
But they will pay out less if they think the value has dropped.
If it's something like a classic/rare where prices might fluctuate then always get an agreed value
Your 10 year old £1,000 banger is likely to have less driver assists/safety systems than a brand new £30,000 modern car, meaning you are both more likely to have accidents (e.g. what would be a near miss in something with modern braking system becomes a crash in the older car), and more likely to be injured seriously in them (worse crumple zones, fewer airbags etc.). It's also more likely to be in poor mechanical condition than the newer car, increasing the chance of a sudden failure, potentially resulting in loss of control & an accident.
Obviously you may keep your 10 year old car in pristine condition while the brand new car is driven on bald tyres and constantly bounced off kerbs by someone who has never even heard the word "servicing", but generally speaking, the above will be true, and unfortunately insurance is based on statistics, not individuals.
There will be far less people crashing classic cars though, so that is a much bigger factor. My old Elise with no airbags or traction control is almost half the price of the gt86.
I would imagine if you put your car value at £500 yet market value is £1000 then they'll find a way to give you £500, right?
I queried this when one the phone to some insurance company, he basically said it doesn’t really mean a lot. The insurance industry is a strange one. I still don’t get why me who drives a car worth £1000 tops has to pay the same rate as someone who owns a £30,000 or more car. Who potentially is going to cost the insurance company more? Me writing off a £1000 car or you writing of a £30,000 car.
And yes I know technically my insurance is covering the 3rd party but what if my car and your car is stolen? They pay out £1000 to me and £30,000 for you, yet the policy costs me the same as it does you. It annoys me.
Part of that though could just be the way insurance is structured meaning people take advantage of it (whiplash claims etc), also the repair industry massively inflate prices because they can.Liability claims (Third Party Property Damage / Injury) make up between 80%-90% of a motor insurers claims settlements, depends on the insurer and their target customer.