Insurance fixed value , what if ??

[Pixelfill]

I thought that the agreed vaue has to be approved by your insurer's loss adjusters at the time the policy is taken out. If the receipts and the photographic evidence are approved at that point, then surely it is up to the insurance provider to make up any shortfall if a TPI refuses to meet the value.

 

I could understand a portion of depreciation over the term of the insurance, but you should have a fixed price to start from, rather than Glass' guide price - *cough* Market Value *cough*

 

Mike

[Homer]

I thought that the agreed vaue has to be approved by your insurer's loss adjusters at the time the policy is taken out. If the receipts and the photographic evidence are approved at that point, then surely it is up to the insurance provider to make up any shortfall if a TPI refuses to meet the value.

 

Its my understanding that once an agreed value has been reached by yourself and your insurer that it is considered the market value of the car when it comes to a claim or total loss (Regardless of which insurer the claim is against)

 

Hopefully Jae can confirm and/or clarify

[Pixelfill]

...

 

Of course, there are quite a few loopholes in the system. A Classic Car policy operates differently and can cover this potential gap.

 

Hope that clears things............a little!

Greg

 

 

Care to elaborate on the classic car policy differences, and how they affect Market Value Greg?

 

I nearly went for a Classic car policy this year, and it seemed to offer all the benefits that Sky were offering, for less than Sky wanted, and it would have freed up my no claims for use on the Fiesta. but I decided to go through Sky when they aligned their price, as they are the approved club insurer. This information might swing it for next year

 

Cheers

 

Mike

[Pixelfill]

Its my understanding that once an agreed value has been reached by yourself and your insurer that it is considered the market value of the car when it comes to a claim or total loss (Regardless of which insurer the claim is against)

 

Hopefully Jae can confirm and/or clarify

 

pretty much my understanding too Daryl - far more eloquently put than my brain dump

 

Mike

[SupraAyf]

Don't really agree with this, because if I hadn't got the agreed value I would probably have been offered £4k or something silly and then had a fight on my hands to get it up to £8 or so, still a lot less than she was worth. Was very glad I paid the extra £30

 

I'm not making a defined statement here good mate. I just want some insurance boffin to give an exact answer on the business of agreed values.

 

There are a good number of people on this forum that have a SKY agreed policy and yet this whole subject is clearly a grey area or else this thread would have finished many moons ago (i.e. people don't know the real 'ins and outs' of the policy - they just think they do!!

 

As an example, but I phoned SKY and asked them to quote me on my car and with an agreed value of £15K. The 15k was just what I wanted in the event of a big crash. That's great I suppose but who am I to state what a car is really worth amongst the dark world of insurance adjusters; market values and policy small print. Yes, I am a member of the Supra forum and we all think our cars are worth a great deal in this bubble of ours but are they? How many times have forum members complained about a guy selling a supe for too little money when they think (expect) its worth more.

 

Supras are almost as cheap as chips in certain parts of the market place so does a dated car suddenly become an expensive one because we bung £20k's worth of gadgets on it - I don't think so, therefore; why do some expect such high returns in the event of a claim from the original agreed value policy. I'm not trying to condemn our cars but I am trying to stir a reaction from our SKY reps in to defining a clear and accurate answer to this issue - after all, they certainly owe the forum members that, as they seem so keen to take our hard earned cash during the policy renewal phase.

 

I think this agreed value status simply needs confirmation on what actually happens in the event of a claim - this should include a defined answer on the action by TPI agents.

 

I'm not really seeking peoples one-off experiences with SKY (or with its agreed values) so all I'm after is a defined answer in the interests of the club members - simple as that guys;)

[Tricky-Ricky]

Well put, and i agree 100%! insurance company's/Sky input please.

[Sheefa]

It is certainly worthwile to hear Jae/Scotts comments on this from Sky.

 

As I said, all insurers will act differently and market value is a common part of play when adjusting losses.

 

I will be looking at a classic car policy next year for sure, but I'm confident Sky respect the agreed value limits and will fight a case should a TPI refuse to cough up.

 

Thread link sent to UIG by PM.

 

Greg

[SupraAyf]

Thread link sent to UIG by PM.

 

Greg

 

Thanks Greg mate - I hope the respons is a good one too!

 

Cheers for all of your tip-top advice;)

[Sheefa]

No problem buddy. Things are a little different in Commercial Insurance in comparison to Personal Lines, but the stichups are the same!

 

Let's hope UIG can clear the murky waters around their Agreed Value Policies.

[Sheefa]

I thought that the agreed vaue has to be approved by your insurer's loss adjusters at the time the policy is taken out. If the receipts and the photographic evidence are approved at that point, then surely it is up to the insurance provider to make up any shortfall if a TPI refuses to meet the value.

 

I could understand a portion of depreciation over the term of the insurance, but you should have a fixed price to start from, rather than Glass' guide price - *cough* Market Value *cough*

 

Mike

 

Mike, not Loss Adjusters mate, it's Underwriters who actually write and bind the policies have to approve the bodywork/mods etc leading to the agreed value you have stipulated. Loss Adjusters are purely that, guys who value the loss after a claim.

 

I seriously don't think our insurers are under any real obligation to match the difference of a TPIs amount and our agreed value. Could be wrong though. Let's hold on for Skys response.

 

Cheers,

 

Greg

[SupraAyf]

 

Let's hope UIG can clear the murky waters around their Agreed Value Policies.

 

Greg, this is a topic that I'm prepared to bleed to death or else we will miss a vital word in the small print that affects everyone's policies:rolleyes:

[Sheefa]

Greg, this is a topic that I'm prepared to bleed to death or else we will miss a vital word in the small print that affects everyone's policies:rolleyes:

 

Not the most exciting though is it!

 

Agreed mate. Insurance is a world of many wrong-doings!

[SupraAyf]

Not the most exciting though is it!

 

I don't know about you mucka but I'm living on the edge with the thought of all this juicy insurance chat:blink:

 

Now come on Jae/UIG; tell us the good news;)

[Tricky-Ricky]

Greg, can you explain this, maybe i have missed something, my current insures are Sky and the underwriters are Ensign, now i had another quote for another brokers, who say thy they don't do agreed value, yet one of the quotes they gave me was from Ensign! so if its the underwriters that determine agreed value, how come this particular brokers say no and the same underwriters, but different brokers say yes? i'm confused how this works:blink:

[markjodrell]

Lets say I insured a shed with all the aftermarket gear, all very worn amd tatty etc and the car cost say 5k.

I then got it insured for say a fixed valuation of £10k, as that is what it would cost to buy another and the put all the gear on it (nice and new)

 

I then ran it down a ditch to write it off. (as it was knackered anyway)

 

Then I wait for a £10k cheque to arrive so I can go out and buy a minter.

 

NOT A CHANCE

 

When the car was assessed after the accident there isnt a chance that they would pay you £10k they would say that it wasnt a true value for the car in the first place.

 

The only slim chance you would have of a payout is if it was stolen , never to be seen again or completly burnt out , most ways of destroying the evidenceso to speak.

 

The ONLY way fixed valuations could possibly work is if the car was valued by the insurances assessor at the time the policy was taken out and a mutual value agreed at that time.

 

Anybody who has had a fixed valuation should grill their insurance broker regarding any payment made in the event of a total loss and get it in writting in straight English

 

IMHO

[SupraAyf]

Marks very valid points just make me more suspicious about the system of agreed values.

 

Does the current SKY agreed policy system check that the car is worth £X,000 prior to the policy being issued and accepted.

 

Surely I can't just say my car is worth 20K and they just say: "OK":blink:

[markjodrell]

Marks very valid points just make me more suspicious about the system of agreed values.

 

Does the current SKY agreed policy system check that the car is worth £X,000 prior to the policy being issued and accepted.

 

Surely I can't just say my car is worth 20K and they just say: "OK":blink:

 

Thats exactly my point.

There is no way an insurance company could send out assessors tfor every quote they give, it would be thosands a day.You could in effect get 20 differnet quotes in one day with 20 different assessors coming out to value the car.

 

In the normal way with any car ,when you insure it / get quoted ,they always asked for the value of the car.Always have done as a matter of course. In the event of a claim they DO NOT take that in to consideration at all, they just give you the book price, Glasses guide etc.

 

My wife wrote a Clio of last year and the assessor, on behalf of Direct Line admitted to getting his valuation from Ebay, I argued the point that you cannot compare an auction price with a retail price or even a normal private sale for that matter, they would budge and in the end I just couldnt be arsed with the hassle.

 

Bu the way mate , just checked ou your garage "AWSOME" car wow:D

[SupraAyf]

I 100% agree with everything you say Mark as something clearly doesn't seem correct about this agreed value policy stuff. We just need the boffins to confirm things now eh! Lets see if they rush to this thread - I dare say not mate:rolleyes:

 

 

Bu the way mate , just checked out your garage "AWSOME" car wow:D

 

Cheers for the compliment good Sir - still got a few things to do and then I can move on to my wife's Supra project (Top Secret at the moment as I have a cunning plan) No big turbos though:(

[Sheefa]

Greg, can you explain this, maybe i have missed something, my current insures are Sky and the underwriters are Ensign, now i had another quote for another brokers, who say thy they don't do agreed value, yet one of the quotes they gave me was from Ensign! so if its the underwriters that determine agreed value, how come this particular brokers say no and the same underwriters, but different brokers say yes? i'm confused how this works:blink:

 

Hi Trick,

 

Really good question. I'll try and explain this one......simplish. My Dad is also a Director of a Broker firm called Beddis Hobbs, now part of Oval so I've asked him about this too. Sad, sad family in insurance hey! Father like Son and all.

 

Whilst all brokers are now closely monitored by the FSA to ensure they are 'treating customers fairly', they all still have different codes of practice and different deals with insurers like any other industry, financial or not.

 

So, Sky brokers offer an Agreed Value policy as their USP, the other brokers simply don't. This is probably because Sky place a greater deal of business with Ensign and therefore get a better deal, (commission rates) and perks of offering Agreed Value etc.

 

Also it doesn't matter if the actual insurance cover is with Ensign and their underwriters mate, Sky Insurance and other brokers still have their own inhouse underwriters who will value your car, not necesarily the Ensign U/Ws.

 

If I had to take a guess, and sorry but that's what it is without knowing more from Jae/Scott, I'd say that they have Delegated Authority to write business on behalf of Ensign. Basically put, perhaps Sky Insurance have the golden pen to write business they see as satisfactory on behalf of Ensign whilst adding in their own USPs i.e. Agreed Value, which are still covered because they are 'key' brokers often called Value Creators for Ensign.

 

Hope this helps. Conclusion is all brokers have different deals with insurers and therefore perks, based on the business placed with them.

[Sheefa]

After speaking to my ol' man who's a Broker, he said that the insurers do have a legal obligation to make up the remainder of the difference of the Agreed Value on your car if a TPI only pays in partial. Again, part of TCF under FSA regulations.

[Tricky-Ricky]

After speaking to my ol' man who's a Broker, he said that the insurers do have a legal obligation to make up the remainder of the difference of the Agreed Value on your car if a TPI only pays in partial. Again, part of TCF under FSA regulations.

 

Thanks for that Greg, think i get the gist, but it also brings me back to

my previous point, given the explanation above, then it still raises the BIG question, why do they take the risk of having to meet the balance of an agreed valuation claim for the messily premium of £30-35, if they know they will defiantly have to pay it? i know i wouldn't! big tail happy car, wet greasy UK roads;)

[Homer]

Thanks for that Greg, think i get the gist, but it also brings me back to

my previous point, given the explanation above, then it still raises the BIG question, why do they take the risk of having to meet the balance of an agreed valuation claim for the messily premium of £30-35, if they know they will defiantly have to pay it? i know i wouldn't! big tail happy car, wet greasy UK roads;)

 

Shhhhhh, they might see this and raise the price!

[Tricky-Ricky]

Shhhhhh, they might see this and raise the price!

 

Fine with me if they include a declaration that they will pay the full value in all circumstances regardless;)

[Sheefa]

Thanks for that Greg, think i get the gist, but it also brings me back to

my previous point, given the explanation above, then it still raises the BIG question, why do they take the risk of having to meet the balance of an agreed valuation claim for the messily premium of £30-35, if they know they will defiantly have to pay it? i know i wouldn't! big tail happy car, wet greasy UK roads;)

 

Why not mate, like anything in life, only some cases on the books will suffer, not all. So if they can rake in another 2,000 odd customers at £30 a pop for an Agreed Value over another Broker not offering said USP, then they have money in the golden claims pot to cover a fallback on a claim that they previously wouldn't of had. Of course, this all depends on the difference between the 'actual' value of the loss based on market value and the 'stipulated' value that you agreed under the AV, however I doubt SKY lose out by offering this to us happy customers.

 

Insurance is simply a weigh up of risk and likelihood.

[Safely Insured]

Hi Trick,

 

Really good question. I'll try and explain this one......simplish. My Dad is also a Director of a Broker firm called Beddis Hobbs, now part of Oval so I've asked him about this too. Sad, sad family in insurance hey! Father like Son and all.

 

Whilst all brokers are now closely monitored by the FSA to ensure they are 'treating customers fairly', they all still have different codes of practice and different deals with insurers like any other industry, financial or not.

 

So, Sky brokers offer an Agreed Value policy as their USP, the other brokers simply don't. This is probably because Sky place a greater deal of business with Ensign and therefore get a better deal, (commission rates) and perks of offering Agreed Value etc.

 

Also it doesn't matter if the actual insurance cover is with Ensign and their underwriters mate, Sky Insurance and other brokers still have their own inhouse underwriters who will value your car, not necesarily the Ensign U/Ws.

 

If I had to take a guess, and sorry but that's what it is without knowing more from Jae/Scott, I'd say that they have Delegated Authority to write business on behalf of Ensign. Basically put, perhaps Sky Insurance have the golden pen to write business they see as satisfactory on behalf of Ensign whilst adding in their own USPs i.e. Agreed Value, which are still covered because they are 'key' brokers often called Value Creators for Ensign.

 

Hope this helps. Conclusion is all brokers have different deals with insurers and therefore perks, based on the business placed with them.

 

Bingo!!!! Pretty much spot on. Sorry for the late response guys. I wish you wouldn't have these conversations on a weekend when I am off smashing people up on the rugby field.

Basically once the "agreed value" endorsement has been placed on your policy it replaces the market value. Regardless of blame, if your vehicle is a total loss and you have an agreed value you will be paid out the agreed value. The insurer will then recover there losses from the TPI.

 

Jae

 

p.s

We won by the way.