Comprehensive Insurance with a Twist

[Williamson]

Just got my comprenshive insurance renewal notice for the Jeep Grand Cherokee, around $200 pa increase, not unexpected, but surfed the internet for a comparison anyway.

The twist is - majority of insurers have capped the insured value in the $8000 to $9000 range. Only Shannons will go higher but this is still only $12,300 - this was the highest "agreed value" I could find.

May be sound reasonable, but given asking prices on carsales.com.au, I could be seriously out of pocket if my current JGC is written-off.

What are other's experiences?

[ruSTynutz]

Might be worth going "Market Value" instead of "Agreed Value"...

[Williamson]

Might be worth going "Market Value" instead of "Agreed Value"...

To me, that seems to be counter intuitive as, in my experience, "Market Value" is usually much less than "Agreed Value", but having said that I'll give it a whirl.

[STeveo]

You may be very dissapointed if you go market value. Shannons have been brilliant to me in the two claims I had to make (car and bike) and payed up withing days of making the claim. Don't know if they will be cheaper for you but always worth a phone call.

[Williamson]

..... I'll give it a whirl.

And so I did.  And the result is attached.

You may be very dissapointed if you go market value ......

Yes, that has been my concern, as previuosly market value has not been adequate to get a like-for-like replacement.  In this case, dealer asking prices (usually more realistic than private prices) start at $16,000, and Redbook value is $14,000.  These are both more (and approaching double) many of the agreed values.  As mentioned above, this (to me) is counter intuitive.

.... worth a phone call.

Not many 'phone calls on these matters these days, I want things in writing - in black & white, clear & unambiguous.

[Jdbiker]

Most of my motorcycles and the 76 Toyota are insured with Shannon’s, comprehensive and agreed value 👍
2008 ST $ 9500 agreed value
2000 ST $ 7300   
2021RE.  $6000
2023 TA  $13500😳
2011 76 $ 60,000

[Williamson]

Most of my motorcycles and the 76 Toyota are insured with Shannon’s, comprehensive and agreed value 👍
2008 ST $ 9500 agreed value
2000 ST $ 7300   
2021RE.  $6000
2023 TA  $13500😳
2011 76 $ 60,000

 

Only the TA gets a "smiley"?

I've never had a problem getting a reasonable "agreed value" in recent years and currently (both the ST1300's, JGC, Pajero, Sportage, CFMoto), but this latest renewal is odd.  Sure, they (AAMI) will allow me an agreed value, but the agreed value is around 50% of what I believe it should be.  Dealer ads on Carsales.com and Rebook and I are on the same page.

On Rusty's suggestion I looked at market value (despite previous misgivings) and bingo, it's cheaper and a better cover (if Dealer ads on Carsales.com and Rebook are a good guide).  I hope I don't have to find out differently.

[Jdbiker]

On the TA gets a "smiley"?

Devalued by $2000 in 2 years 🤓

[Jdbiker]

Like the agreed on the 1100 though, only paid $500 for it 🤓

[ruSTynutz]

It found it interesting to see how much AAMI were wanting to slug you for "agreed value" compared to "Market Value", Michael...

I had a similar issue with QBE...with my old Hyundai i30, the agreed value kept dropping yet the premiums skyrocketed.
I ended up swapping to AAMI when QBE decided they wanted $110 a month with agreed value of something like $5000. 

[Williamson]

It found it interesting to see how much AAMI were wanting to slug you for "agreed value" compared to "Market Value" ....

Yes.  But for me, more than confusing, more like dumbfounding as it is the complete reverse of previous experience.

I had a similar issue with QBE...with my old Hyundai i30, the agreed value kept dropping yet the premiums skyrocketed.
I ended up swapping to AAMI when QBE decided they wanted $110 a month with agreed value of something like $5000. 

Except for motorcycles, we've had all of our policies (cars x 2, caravan x 1, home x 1, rental x 1) with AAMI for many years now, but due to poor service and increasing premiums, only car x 1 and caravan x 1 are still with them.

Poor service!  By this I mean that before settling on a policy, I did have a chat with an AAMI customer "service" officer.  ("Service" because in this case, IMO, this is a loose term".)  Anyway, after some discussion, the CSO said that the Allianz quote could be matched.  When asked if I was willing to proceed with the revised, competitive AAMI quote, I said, "No, as AAMI has disrespected me now, and I don't want to deal with them anymore, make a note on the home and caravan policies, or I may go elsewhere with them."   Or words to that effect.

I'm doing my best to uphold the grumpy old man image.

                  

[ruSTynutz]

Yes.  But for me, more than confusing, more like dumbfounding as it is the complete reverse of previous experience.

My personal view is that insurance companies are artificially reducing agreed values these days so it's so much easier for them to write a vehicle off.
As vehicles age, parts are harder to source and tend to be more expensive so a low agreed value gives the insurance company an easy out...well, that's what I think.

Except for motorcycles, we've had all of our policies (cars x 2, caravan x 1, home x 1, rental x 1) with AAMI for many years now, but due to poor service and increasing premiums, only car x 1 and caravan x 1 are still with them.

Poor service!  By this I mean that before settling on a policy, I did have a chat with an AAMI customer "service" officer.  ("Service" because in this case, IMO, this is a loose term".)  Anyway, after some discussion, the CSO said that the Allianz quote could be matched.  When asked if I was willing to proceed with the revised, competitive AAMI quote, I said, "No, as AAMI has disrespected me now, and I don't want to deal with them anymore, make a note on the home and caravan policies, or I may go elsewhere with them."   Or words to that effect.

I've never expected loyalty from insurance companies so I hold no loyalty to them.
I've always been happy to chop and change depending on which company offered the best premium and best coverage.
I've even gone online and taken up a new policy with the same insurance company when my old policy was expiring just so I got the new policy discount although I think they may have woken up to that lurk these days.