Car Insurance: I've valued my car at £1

18
Posted 14th Jan
untill i saw the renewal I forgot I valued my car at £1 on my insurance. My logic being that I've a 09 ford focus 1.6 Petrol, probably worth £1k or so, but If something were to happen my excess is £150, so I woudln't break my no claims for £800...I'd just get a new car. I kept comprehensive as I wanted windscreen cover. Is there any disadvantage here? I suppose I could hit somebody else and want to claim for myself as well as them, I hadn't thought of that till now. My insurance is about £200 and I'm thinking given that I drive 6000 miles a year, I should be low enough risk, I know anytihng can happen but thinking of upgrading car in next 6 months anyway. Up for renewal in Feb so wondering any reason to change it?
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"You may be tempted to underestimate the value of your car for a cheaper premium. If it’s written off you won’t get back it’s true value. Worse, your insurance provider may find that you dishonestly obtained the insurance, and will invalidate or even cancel your policy."


comparethemarket.com/car…ce/
Doesn't really matter what you value your car at... the insurance company will use market value for all calculations and claims (the lowest market value they can find ).
I don't understand your reasoning behind the £1 valuation - if you weren't going to claim it doesn't matter what valuation you put on the car.
I'm baffled how you think this makes any difference to your no claims. A claim is a claim regardless of the value.

Anyway, they'll say you deliberately put it low to get a cheaper quote. If you're lucky they'll let you pay more, if you're not they'll void your policy which you'll have to declare and will make insurance much more in the future.
dcx_badass14/01/2020 22:07

I'm baffled how you think this makes any difference to your no claims. A …I'm baffled how you think this makes any difference to your no claims. A claim is a claim regardless of the value.Anyway, they'll say you deliberately put it low to get a cheaper quote. If you're lucky they'll let you pay more, if you're not they'll void your policy which you'll have to declare and will make insurance much more in the future.


My logic was that as I was never going to claim for my own car to me the value of the car was £1, I wouldn't want to lose my no claims bonus on a cheap car so would never claim for my own car. So if I valued at £1 or £1000 I was never going to claim either so figured I'd just value at £1
Ringfinger14/01/2020 22:06

Doesn't really matter what you value your car at... the insurance company …Doesn't really matter what you value your car at... the insurance company will use market value for all calculations and claims (the lowest market value they can find ).I don't understand your reasoning behind the £1 valuation - if you weren't going to claim it doesn't matter what valuation you put on the car.


I thought it would be a cheaper quote as figured that would be the max value they would pay out..... A £50,000 car must cost more to insure than a £500? If they don't use your valuation for the premium calculation why do they ask for it?
IamMT14/01/2020 22:04

"You may be tempted to underestimate the value of your car for a cheaper …"You may be tempted to underestimate the value of your car for a cheaper premium. If it’s written off you won’t get back it’s true value. Worse, your insurance provider may find that you dishonestly obtained the insurance, and will invalidate or even cancel your policy."https://www.comparethemarket.com/car-insurance/content/does-the-value-of-my-car-affect-my-insurance/


Yeah probably worth updating the value given that info, thanks
christopherwhiteis114/01/2020 22:13

I thought it would be a cheaper quote as figured that would be the max …I thought it would be a cheaper quote as figured that would be the max value they would pay out..... A £50,000 car must cost more to insure than a £500? If they don't use your valuation for the premium calculation why do they ask for it?


I paid £34k for my Focus RS second hand, they said that price was fine to use on the insurance and mine was £360 fully comp with Sky Insurance
Toon_army14/01/2020 22:30

I paid £34k for my Focus RS second hand, they said that price was fine to …I paid £34k for my Focus RS second hand, they said that price was fine to use on the insurance and mine was £360 fully comp with Sky Insurance


Yeah maybe the cost of car is quite negligable, I'll tell them there is an error on the quote as the value is £1 instead of £1000, see what increase is... I'm never going to claim for £1k so just felt it was a waste to value it
christopherwhiteis114/01/2020 22:41

Yeah maybe the cost of car is quite negligable, I'll tell them there is an …Yeah maybe the cost of car is quite negligable, I'll tell them there is an error on the quote as the value is £1 instead of £1000, see what increase is... I'm never going to claim for £1k so just felt it was a waste to value it


As somebody mentioned above they'll just put it down to market value, if you say £1 their hardly going to just give you £1 back, even scraps worth £150
Another major flaw in your plan.
You are not by another driver, they accept blame. Their insurance company pays out your valuation in full - no arguing £1. Bargain!
You are under insured.
When it comes to a claim, when (if) the insurance is paid out, they will say something like, you've insured it for 1/1000 of its value, so here is 1/1000 of your payout. By the way, we paid out £xxxx thousand on your behalf to a third party so you now owe us £xxxx'
Toon_army14/01/2020 22:56

As somebody mentioned above they'll just put it down to market value, if …As somebody mentioned above they'll just put it down to market value, if you say £1 their hardly going to just give you £1 back, even scraps worth £150


Trust me, insurance don’t want to pay out any money. If you valued your car at £1 then that’s what you’ll get. The market value will only come into play if you valued a £6k car at £42k.
migavupe15/01/2020 07:56

Trust me, insurance don’t want to pay out any money. If you valued your c …Trust me, insurance don’t want to pay out any money. If you valued your car at £1 then that’s what you’ll get. The market value will only come into play if you valued a £6k car at £42k.


My mates Q7 got nicked couple of years ago, he valued it at £14k as that's all he paid, they paid him out £17k because that was the market value!
My other mates A4 was wrote off, he got back what he paid for it!
I play around with the valuations when getting qoutes and often found that if i put higher value of the car, the insurance actually becomes cheaper, not the other way round
What is the price of insurance for third party car insurance?
I valued a motorbike I bought at £4000 for insurance as that was what the dealer advertised it at - I paid £3800 for it. The motorbike was stolen later that year and the insurance assessor valued it at £4500 - but only paid out £4000 as that was 'what I had insured it for' in their words. Insurer was Aviva.
I had assumed they would not pay out more than what I had paid anyway so was surprised they paid out more - but they said they would not pay out more than I had put on the quote even though they had valued it at market value of £4500. I'd have been gutted if I had put £1
DAMNOME15/01/2020 13:09

I valued a motorbike I bought at £4000 for insurance as that was what the …I valued a motorbike I bought at £4000 for insurance as that was what the dealer advertised it at - I paid £3800 for it. The motorbike was stolen later that year and the insurance assessor valued it at £4500 - but only paid out £4000 as that was 'what I had insured it for' in their words. Insurer was Aviva.I had assumed they would not pay out more than what I had paid anyway so was surprised they paid out more - but they said they would not pay out more than I had put on the quote even though they had valued it at market value of £4500. I'd have been gutted if I had put £1


yeah i thought that would make sense that you are putting an upper value on the amount the vehicle is worth, but they can deem it to be worth less than that, surprised people getting paid out more. In my case i'm never going to claim on it (as would rather keep no claims than get £700 or something, no claims worth more in my opinion), so effectively getting 3rd party with windscreen cover, so thought reducing the max payout would reduce the insurance as they'll never have to pay out more than £1 for my car. Perhpas people with more expensive cars look after them more, but then they are more of a target for theft...a lot prob goes into the algorithm!
Was on web chat to direct line....I asked why on my online documents it states the car value is £1, but when i got a written quote it sates the value as "Market value up to £75,000". Turns out car value doesn't impact the quote at all as long as it's under that! I don't think I did put the £1 value in, it must be just a system thing, so apologies for those who replied trying to help....I thought i must have done it and forgot!
Odd though how same cost to insure a £75K car as a £1k car....surely when comprehensive the £75K car cost of replacement would be substational vs £1K.
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