car insurance

[STK-XR8]

l got my policy last week for my 95 fairlane ghia 5.0lt auto , noticed that the agreed value full comp had dropped from $8500. down to $6900. the cost of policy had also dropped $60. ,decided to ring them to find out why it had dropped so much and tried to find out if i can get the previous 12months agreed value of $8500. for this 12 months.
their reply was NO WAY will we insure it for that price the market has dropped because of petrol price's no one wants a v8 anymore, best they can do was $6900.
so i shopped around and rang another company, now this is where it gets funny this company asked the usual stuff ,location ,age blah blah blah didnt ask how many kms, asked how much i brought the car for ,at auction for $6500. the sales rep said they will only insure it for $6500. this clicked to me so i asked if l had said that i brought the car for $10,000 would you insure it for $10,000 there reply was yes we insure your financial loss .
what the f so if i brought a car that was valued at $30,000 for say $25,000 at auction they would only insure it for $25,000 not what it would cost me to replace the car ,there reply YES we cant insure someone that is going to make a profit on there car through insuance. so it's alright for them to make a profit by only paying what we paid for the vechile ,not to replace it.

stuff this rang another company they asked usual stuff blah blah blah,wheres it parked , any mods done ,yeah 18", tinted widows and a little lowered, came back after a little on hold said sorry we cant insure it because it's not locked over night in a garage ,WTF .even if we were to insure it honestly would not be worth it, about $1200 to insure it and would be only valued at $6500.
so after all this im staying with my insurance and wear the drop of value.

any one else in the same vote, or recommened a good insurance company to try..
1st company r---
2nd company j--- c--
3rd company s------s


ta den.....

[Sorted]

Agreed Value vs Market Value

Agreed Value is actually based on the market value of the insured vehicle at the time of renewal.

Market Value depreciates or increases during the course of the period of insurance.

Main benefits of an Agreed Value policy is that you know exaclty what you will get paid in the event of a total loss and that the value of the car does not depreciate (or increase) during the period of insurance.

Some insurers are now only insuring what was paid for the car at Auction unless it has been assessed, so if you bought a car at Auction for $25,000 and the Market Value is $30,000 they will only insure the car for an Agreed Value of $25,000

Which stands to reason - if you bought the car for that amount of money at Auction then you would be able to buy the similar car for a similar price.

In your case the Market Value of your car is $6,500 and this is the Agreed Value amount they are offering on renewal - it will be insured for $6,500 for 12 months until next renewal

[Yaw]

If you overinsure a car for example what you were saying insure a car valued at $6500 for $10,000 a total loss claim will be treated suspicously and investigated very thoroghly as it can be argued its motive for a finacial gain.

Even if your claim is legit it will only hold up the process, sometimes by up to 6 months for due course of an investigation.

[BeStRaFe]

my EL 1998 Sedan that i still have
agreed full comp $9800

i only paid 7500 3 YEARS AGO for it
nrma ftw.... and they onlky asked if i had a garage.. not if i kept it in there :P

[Yaw]

Originally Posted by BeStRaFe

my EL 1998 Sedan that i still have
agreed full comp $9800

i only paid 7500 3 YEARS AGO for it
nrma ftw.... and they onlky asked if i had a garage.. not if i kept it in there :P

You might want to look at the duty of disclosure clause in your policy book or product disclosure statement.

this is from the NRMA PDS

Your Duty of Disclosure
– what you must tell us
When you take out, amend or renew a
policy with us, you have an obligation
to answer our questions truthfully and
provide us with any information that
could reasonably affect our decision
to insure you. This is called your
Duty of Disclosure
When you answer our questions
 you must answer honestly
 you are answering for yourself,
any other insured and anyone else
that you want to be covered by this
policy
 you have a responsibility to tell
us anything known to you and
which a reasonable person in the
circumstances would include in
answer to the questions
 we will use the answers in deciding
whether to insure you and anyone
else to be insured under the policy,
and on what terms
however
 if you do not answer our
questions in this way we may
• reduce a claim,
• refuse to pay a claim, or
• cancel the policy
 if you answer our questions
fraudulently
• we may refuse to pay a claim
and treat the policy as never
having been in place.

I have put in itallics where you may came unstuck.