Value of vehicle when taking out insurance - quick question

lmfy2k · 25 Jun 2009 at 15:02

been bugging me this for a while

suppose i took an insurance policy out for a car that i paid £4000 for.

when i take out insurance i tell them its worth £4000.

if i was to crash the car (not my fault) or car gets stolen and burnt and is a right off

do the insurance company pay out £4000 or is it the market value at the time?

Siliconslave · 25 Jun 2009 at 15:06

unless you have an agreed value insurance they'll offer you something like the trade in value of the car if its written of - then its up to you to argue with them to get the market value of the car - the insured value has nothing to do with it.

I'm not sure what would happen if the market value was significantly higher than the declared value though... i guess they might get a little funny about it

Bat · 25 Jun 2009 at 15:06

Unless you have an agreed value policy they will pay what they deem to be the market value and usually a bit more if pushed.

lmfy2k · 25 Jun 2009 at 15:08

ahh sweeet

so the declared value means nowt then on a standard policy.

Thanks for that guys