Insurance rip offs - Page 2

Jason[98.EL] · 05-04-2009, 08:38 AM

i,m isured with shannons for my 98 el sapphire agreed value of $9000 and i only pay $600 a year i say get agreed value

they have been great for me no probs with claims ect i had an issue with a wheel that was damaged in an accident and it was repaired a second time on insurence nearly a year later

Jason

Yaw · 05-04-2009, 09:34 AM

Quote:

Originally Posted by Pistol

Sounds to me like you work for a insurance company what if the f 150 was given to me for $1.00 then what ? we insure it for what i paid or for what is in the red book answer that question

Having looked at redbook, it does not list a 2007 F150 that was available in australia from the original manufater-meaning an import, therfore it cannot be used. IF you were given it as a gift or paid a low price you would still find there are ways to work out a fair market value.
For instance a selection of 5-10 ads at carpoint,carsguide etc will give an average price of what fair market value should be.

As for the agreed value changing, That would be on each renewal you recive, the new agreed amount for the new renewal period.
I further note you are concerned about the low klm of your car. Low klms don't make that much difference, in your case of 7000 klms, it would be lucky to make $1000 difference. When the difference really kicks in is when the klms are high for the car, it then depricates it further pretty quickly.

Futhermore the actual sum insured has very little difference to the premium. Why premiums go up and agreed values come down even if you have had no claims is easy to explain.
A premium has several factors involved. Risk Address, No Claim Bonus Discount, age and gender of the driver, the type of vehicle and all the statistics regarding the above, type of use private or buisness etc.
Satistics regarding claims that is. Not to mention the cost of reinsurance has gone up in the last 4-5 years over 50%. These costs need to be distributed across the pool of insurance.
One good example I can think of is when the 2 door munaro was reintroduced 2004 I think, The company I work for that year had set the pricing the same as the 4 door top of the line commodore.
During that year we had a lot of the 2 door munoros on the books as we had made a mistake with the pricing, and the cost of claims for these vehicle was a great deal more than the car the pricing was based on. The following year when this mistake was corrected a letter was sent explaining this to the customers as in a lot of cases the premium almost tripled. But we did still honor the year that was a mistake.

One more point I would like to make to you is that obviously year one you were happy with the cover and agreed value, each year from there by law they would have sent your renewal with the new agreed value on it....IT IS YOUR RESPONSIBLITY to read and understand your renewal before you pay for it. By paying for it you are accepting the new terms PRIOR to taking the offer of renewal, meaning they ACTUALLY told you what it was, the choice is yours to accept it or go elsewhere. So bearing that in mind how are they "ripping you off" ? They have been totally upfront and honest with you BEFORE you purchased the cover. Surley you would rather know before hand than when an accident or event occurs.

Spudz27 · 05-04-2009, 10:13 AM

I don't have an expensive car, but I have my ED insured with HBF for 400 per year at an agreed value of 7.5k if it is stolen, burnt out etc 6k if it is smashed.

My Excess is $250, I am over 25 the Excess for the mrs is $750 she is 23. Get free windscreen, hire car etc.

**Sorted** · 05-04-2009, 10:35 AM

There is also a New for Old Clause

Some Reputable Insurer's have New for Old Replacement for 3 Years so if you can is involved in a total write off in the first 3 years since it was first registered then you would be replaced wirh a Brand New Car of the same model with the same accessories

EG Your March/2006 GT was a total loss in Feb/2009

Yould be replaced with a 02/2009 GT

as its under 3 years old

Yaw · 05-04-2009, 01:29 PM

Quote:

Originally Posted by Sorted

There is also a New for Old Clause

Some Reputable Insurer's have New for Old Replacement for 3 Years so if you can is involved in a total write off in the first 3 years since it was first registered then you would be replaced wirh a Brand New Car of the same model with the same accessories

EG Your March/2006 GT was a total loss in Feb/2009

Yould be replaced with a 02/2009 GT

as its under 3 years old

You really need to read the entire Product Disclosure Statement with those things, Usually lots of strings attached. For instace in 3 years time do you really think they will be able to find a 2009 car in stock that is brand new. If they talk about the same make and model, that is usualy what they mean.

Fev · 05-04-2009, 05:54 PM

i'd be jumping for joy about that - im paying 2k a year on my 03 falcon..

Iggypoppin' · 05-04-2009, 06:39 PM

I think i counted 5 people whom i got hook, line n sinker. sorry guys just had to have that one.

by and large you should be able to keep your agreed value the same, i do this with AAMI they recently contacted me to renew my insurance and i am still insured for 22,500 and the premium us down by 7$ a month. just had to have a chat with the lady for a bit.

**Sorted** · 06-04-2009, 12:59 PM

Quote:

Originally Posted by Yaw

You really need to read the entire Product Disclosure Statement with those things, Usually lots of strings attached. For instace in 3 years time do you really think they will be able to find a 2009 car in stock that is brand new. If they talk about the same make and model, that is usualy what they mean.

Isn't that what I said - Brand New Car? my eg. was March 2006 replaced with Feb 2009 Brand New Car - 3 years later.... hmmmmmm

The clause is usually only if the car has travelled under 60,000klms

but other conditions may vary...............

FTE72 · 06-04-2009, 02:30 PM

Quote:

Originally Posted by RG

Maybe you aren't talking to the right people at Shannons. I've had my XR8 insured for the same agreed value for the last 2 years, they tried to change it and I said no, they tried to up my premium and I said no.

I won, they left my premium as it was and they left the value up at what I wanted.

I have the same experience with the two T3's. Agreed value is the same now as it was when I first insured with them. 4 years for one of them. Premium is still the same, value is still the same.
I added the 6 pot Brembo's to the T# and they included them as a Safety Mod, so my premium did not go up.

Ask for the supervisor.

Pistol · 06-04-2009, 05:14 PM

i WOULD LIKE TO THANK THE PERSON'S THAT MENTIONED RYNO INSURANCE COMPANY I CALLED THEM AND GOT A PRICE FOR THE F 150 OF $861.OO COMPARED TO SHANNON'S PRICE JUST OVER $1400.00 NOT A BAD SAVING AND YES I COMPAIRED APPLES WITH APPLES.

Yaw · 06-04-2009, 11:09 PM

Quote:

Originally Posted by Sorted

Isn't that what I said - Brand New Car? my eg. was March 2006 replaced with Feb 2009 Brand New Car - 3 years later.... hmmmmmm

The clause is usually only if the car has travelled under 60,000klms

but other conditions may vary...............

no you said a 03/2006 car being replaced 3 years later with a 02/2009 car.....to get a car of the same make and model 3 years later they would need to be able to source a 2006 car that was not sold and still in stock in 2009.....pretty near an impossibility.
You are assuming they would for instance replace a BF falcon with an FG.....they would be looking for a BF that is still in stock somwhere, failing that, then they pay out the value of the policy be that market or agreed value!

MITCHAY · 06-04-2009, 11:28 PM

Always ring up when you get a renewal because it is automatically calculated. I did an online quote for my WRX which turned out to be less premium for higher agreed value than what my renewal was going to be.

End result was I got $400 off my premium, higher agreed value, and a rating 1

This is with Just Cars by the way. When you ring them up they take into account the mileage on you car too.

Hell Cat · 07-04-2009, 01:28 AM

Is there any good insurance company for young fellas?

I'm almost 21 & will be on my opens in 2.5months, I have a perfect record with no crashes or fines BUT I cant find anyone to insure my XP.

I tried shannons, They asked me all these questions & said I would be a rating one, but then when they found out i had only been driving for 4yrs they said NO to insuring me. even though I was classed as a rating one

Tried Just cars & they said My car was too old & I was too young.

YouI said no because the car was too old, but my age was fine.

& all the other places only want to cover the car for redbook value which is bollocks,
So i'm just stuck with 3rd party fire & theft..

3vXT · 07-04-2009, 01:36 AM

Hell Cat isn't your real name is it? If i was an insurance company i'd knock you back for that. It sounds dangerous

XBROO · 07-04-2009, 03:32 AM

What he is saying is that they only want to insure the F150 for what he paid for it and not the market value of $120 000. So he is woundering why they are going off red book for the GTP and not the F150. Mate I'd just tell them you paid $120 000 for it and be done with it. All insurance companies are rip offs that's how they stay in business otherwise they'd go bust.

Springfield_Johny · 07-04-2009, 07:41 AM

Quote:

Originally Posted by 4Vman

"Agreed value" has to work 2 ways.. you both have to agree. Id imagine that that "agreed" value is only valid for the period of the insurance i.e 12 months, upon renewal a new agreed value would need to be negotiated.
Shannons are largely dealing with classics and collectibles so values rarely drop.
You're trying to apply a "collectible" mentality to contemporary cars that depreciate.
Your car might only have 6000k's on it but its 3 years old now and will have depreciated like the rest of them.
Id imagine insurance companies get very nervous and suspicious when people try to over insure their vehicles....

I used to do some insurance work, the standard policy wording was a bit like this

XXXXX insurance company is referred to us, we, our etc in this document

agreed value is what we agree to insure your vehicle for

It basically means that its the insurance company who ultimately make the decision regarding agreed value

RG · 07-04-2009, 11:04 AM

Hmmm got my renewal notice in the mail from Shannons yesterday. Yearly amount is the same but the "agreed" value has dropped by 5k. I don't agree with that strangely, phone calls shall be made.

RG · 07-04-2009, 11:37 AM

Success!! Rang Shannons and spoke to a helpful bloke who happened to own an AU himself, A SIII XR6 TT (wtf??) and sorted it. It has dropped but by only 2.5k now and he also listed it as recreational use (which it is) so my premium dropped by over $100 a year.

WIN.

FTE72 · 07-04-2009, 12:25 PM

Quote:

Originally Posted by RG

Success!! Rang Shannons and spoke to a helpful bloke who happened to own an AU himself, A SIII XR6 TT (wtf??) and sorted it. It has dropped but by only 2.5k now and he also listed it as recreational use (which it is) so my premium dropped by over $100 a year.

WIN.

You got the same bloke I spoke to.
Good egg that one.

LOCO XP · 07-04-2009, 01:06 PM

Quote:

Originally Posted by Hell Cat

Is there any good insurance company for young fellas?

I'm almost 21 & will be on my opens in 2.5months, I have a perfect record with no crashes or fines BUT I cant find anyone to insure my XP.

I tried shannons, They asked me all these questions & said I would be a rating one, but then when they found out i had only been driving for 4yrs they said NO to insuring me. even though I was classed as a rating one

Tried Just cars & they said My car was too old & I was too young.

YouI said no because the car was too old, but my age was fine.

& all the other places only want to cover the car for redbook value which is bollocks,
So i'm just stuck with 3rd party fire & theft..

Hell Cat, I have dealt with Vigil in the past and found them to be pretty good for classic cars. I had them insure my EH Wagon when I was 21, with mods (stereo, 186, extractors, lowered, wide wheels etc) and the premiums and yearly fee were very reasonable. I approached a broker wrt. insuring my XP Ute (mods: engineered with 302W, disc brakes, 15" billets, lowered etc), they tried both Vigil and Shannons, who were reluctant to take me on, and only for $1200 plus. This was when I was 27. I contacted Vigil directly, spoke to a helpful bloke with a NZ accent, who was interested in my cars, got agreed value full comp for $17000, (minimal use, quiet postcode, over 25, sole driver, garage storage), and that has remained under $500/yr. I was spun out with that quote, I told the bloke that XPs weren't factory fitted with V8's, but he honoured the quote, ran it past his supervisor, so all good from here.

irish2 · 07-04-2009, 05:19 PM

Quote:

Originally Posted by Hell Cat

Is there any good insurance company for young fellas?

I'm almost 21 & will be on my opens in 2.5months, I have a perfect record with no crashes or fines BUT I cant find anyone to insure my XP.

I tried shannons, They asked me all these questions & said I would be a rating one, but then when they found out i had only been driving for 4yrs they said NO to insuring me. even though I was classed as a rating one

Tried Just cars & they said My car was too old & I was too young.

YouI said no because the car was too old, but my age was fine.

& all the other places only want to cover the car for redbook value which is bollocks,
So i'm just stuck with 3rd party fire & theft..

I insured a 65 stang with shannons at 20. I don't see why they would have a problem insuring you.

Bucknaked · 10-04-2009, 06:52 PM

I had agreed value on my XR6 through Shannons. When it came to renewal, they dropped the value by $5,000 each year. I'll never insure through them again.

XRSIKS · 10-04-2009, 07:19 PM

Quote:

Originally Posted by Bucknaked

I had agreed value on my XR6 through Shannons. When it came to renewal, they dropped the value by $5,000 each year. I'll never insure through them again.

I go thru AAMI, coz they were cheap :P

**GasoLane** · 10-04-2009, 07:30 PM

Quote:

Originally Posted by Bucknaked

I had agreed value on my XR6 through Shannons. When it came to renewal, they dropped the value by $5,000 each year. I'll never insure through them again.

Ah, thats what the Shannons office staff agreed on. Not you.
( I thought you were off to the Gold Coast with Kev's money?)

AAMI for me as well, with a genuine agreed value

CPOCSM · 13-04-2009, 02:14 PM

This discussion on insurance really cracks me up as some people in the world who buy a car/truck/bike/boat expect the value of that vehicle to remain constant through the years. Coming from a family who ran their own trucking business, depreciation is a constant enemy and therefore it is delusional to thing the car/truck/pushbike you bought for $70000 5 years ago would be worth the same today. $5000 per year is pretty good considering that most of us drive our beloved vehicles every day and they get wear and tear. the $5k per year represents onl;y 7 percent depreciation - consider the yards working in up to 19 percent on cars they trade in and sell off the lot - upwards of 30 percent if they are moving them on to wholesale.

Back to the insurance - Shannons do all 4 of my vehicles (2 x third party, 2 x full comprehensive) plus my contents ($85 000 as I rent and includes $10000 garage care) plus a free windscreen for ALL the vehicles a year for $71.50 a month...I bitched as they raised the premium by 6 bucks. I am not complaining now I am seeing the woes here at the moment

Shopping around is the way to go but if you get a quote you dont like - walk away from it - there are companies out there that are cutting each others throats to get your business...

Just my 2 cents worth of course

Hooroo