Insurance valuation advice

[Ingwe]

We’re due to renew our motorhome insurance later in July and are wondering about the level of insurance. The van is a 2012 Bailey 620 SE. Its done about 45k miles. Last year, we put the value at up to £33k. This is the most that the insurer would pay out.

In the renewal notice this year, Caravan Guard advises to review the value you put on the van as a result of the tight market, the shortage of vans etc. So we looked at what 2012 Bailey’s were fetching in on-line and where we found such items (there weren’t many) they came in at £33k up to £37k. I appreciate that, if one states that the value of the van should be increased from £33k to some higher figure, the premium will increase as a result. And I’m also aware that the maximum figure may not be the sum the insurer pays out in the event. We’re minded to raise the value to £35k and be prepared to pay a higher premium but we wondered how others approach this rather nebulous concept of ‘market value’ as opposed to book value which we presume will be considerably lower than market value.

 

[The Wino]

I don't think the market value makes a huge difference to the premium why not ask the broker what the premium would be at say 33,35 and 37k. I bet there's not a lot in it.

 

[Lenny HB]

Unless it's over £100k value doesn't normally affect Motorhome policies.

 

[Guigsy]

If you use some of the online insurance quote engines, you can play around to see what makes a difference. Insured vehicle value has little effect.

 

[The Wino]

If you use some of the online insurance quote engines, you can play around to see what makes a difference. Insured vehicle value has little effect.

I suspect very little of the premium is for theft a lot will be for third party claims and personal injury etc.

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[Ingwe]

Unless it's over £100k value doesn't normally affect Motorhome policies.

Not sure this can be right. Why would an insurer keep the premium the same for a higher valuation? I agree with The Wino that the premium increase by raising the market value from say £33-£37k may not be significant and I’ll certainly be discussing the matter with Caravan Guard.

These are really strange times. When we bought the van, we didn’t contemplate it as an asset increasing in value. Normally cars, vans etc are depreciating assets.

 

[The Wino]

Not sure this can be right. Why would an insurer keep the premium the same for a higher valuation? I agree with The Wino that the premium increase by raising the market value from say £33-£37k may not be significant and I’ll certainly be discussing the matter with Caravan Guard.

These are really strange times. When we bought the van, we didn’t contemplate it as an asset increasing in value. Normally cars, vans etc are depreciating assets.

I think as you say the most they would pay out would be the lower of the market value or your estimate. I think the big drawback would be if the estimated value took it to a level where a tracker was required.

 

[Ingwe]

I think as you say the most they would pay out would be the lower of the market value or your estimate. I think the big drawback would be if the estimated value took it to a level where a tracker was required.

We wouldn’t mind if they paid out market value even if was less than our estimated value, as this is not the same as book value. We have a tracker fitted already.

 

[bobnick]

<<<<< i was refused renewal insurance on Bertie as the insurance company said it had increased in value beyond their limit in the last year.
I then got 2 independant Jag specialist written valuations and called them back. No they said we believe it's worth more. So i had no option to go with a another insurer.

 

[mofurt]

Increased ours by 25% last year, insurer didn't bat an eyelid and no difference in quote.

<<<<< i was refused renewal insurance on Bertie as the insurance company said it had increased in value beyond their limit in the last year.

A subtle but important thing - they declined to quote, not refused to insure. The first means it's just not in their risk profile (and it could be as simple as that actually they are trying to reduce the number of expensive classics they cover in your postcode area). The latter means they don't trust you for some reason, and you have to declare that going forwards when you get quotes and it may cause others to refuse.

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[bobnick]

Increased ours by 25% last year, insurer didn't bat an eyelid and no difference in quote.



A subtle but important thing - they declined to quote, not refused to insure. The first means it's just not in their risk profile (and it could be as simple as that actually they are trying to reduce the number of expensive classics they cover in your postcode area). The latter means they don't trust you for some reason, and you have to declare that going forwards when you get quotes and it may cause others to refuse.

Declined? Refused? Think i may still have the letter in file. I also seem to remember a para that said this decline/refusal will not effect future insurers insuring. Hope i still have it.

 

[mofurt]

I know - to the average person it's the same thing, but has a different meaning in the weird world of insurance. Just don't mention it on future quotes as you don't have to declare a decline, but you do a refuse (if they ask, which they almost always do).

 

[saad]

We’re due to renew our motorhome insurance later in July and are wondering about the level of insurance. The van is a 2012 Bailey 620 SE. Its done about 45k miles. Last year, we put the value at up to £33k. This is the most that the insurer would pay out.

In the renewal notice this year, Caravan Guard advises to review the value you put on the van as a result of the tight market, the shortage of vans etc. So we looked at what 2012 Bailey’s were fetching in on-line and where we found such items (there weren’t many) they came in at £33k up to £37k. I appreciate that, if one states that the value of the van should be increased from £33k to some higher figure, the premium will increase as a result. And I’m also aware that the maximum figure may not be the sum the insurer pays out in the event. We’re minded to raise the value to £35k and be prepared to pay a higher premium but we wondered how others approach this rather nebulous concept of ‘market value’ as opposed to book value which we presume will be considerably lower than market value.

I don't think it will effect much as your value is less then 100k