£12000 or £6000?

Discussion in 'Motorhome Chat' started by anybody, Oct 21, 2008.

  1. anybody

    anybody Deleted User

    Hello,


    I've just bought a motorhome for £6000 but it is worth £12000. (The person I bought it off really needed a quick sale).

    Trouble is, when I tried to insure it they asked me what value.

    If I say £6000 and it goes up in flames, the payout won't be enough to replace the motorhome.

    If I say £12000, then am I guilty of over-insuring? And if so, won't this mean that they may pay out only 50% of any claIM?

    Thanks if you can help me.

    Peter
     
  2. N Luyetund

    N Luyetund Deleted User

    Not if that is the true value ...check dealers' prices for comparison.
     
  3. camcondor

    camcondor Read Only Funster

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    As I understand it, its not what you paid, but what the actual commercial value is, that you need to insure it for. You may have paid a nominal penny, for instance, or it may even have been a free gift to you, but it should still be insured for its full commercial value ie if you went out to a dealer now to buy the same make / model.:RollEyes:
     
  4. Jim

    Jim Ringleader

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    MH prices are dropping, and to be honest those figures you give them really mean diddly-squat. In the event of a claim the insurance company will pay what they consider your vehicle to be worth. The figure you gave them just gives them ammunition to use against you if you under or over estimate the value and then claim. So with this in mind, choose a number from just above middle somewhere, say £8500 and run with that, if it is stolen tomorrow, there initial offer will probably be £4000 anyway:RollEyes:
     
  5. Geo

    Geo Trader - Funster

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    Sorry Jim don't like to criticise anyones comments, but that advise is not the way to go
    Insurance is a tricky game at the best of times, and whilst I'm no expert I have had many dealing with insurance both as a motor trader and Chairman of a motor sport organisation

    The whole point of insurance is to put you back in the same possition as you were before the claim, and the original poster was quite right to ask the question

    Legally he is only entitled to his financial loss, receipts may be reqd to prove this.
    Under insure and you may be out of pocket, because if you claim for £200 on a 50% under insured item they will only pay out 50% of your claim IE £100 even though the total value was £6000 you were 50% under insured ,thats how it works
    If you over insure you could be guilty of attempted fraud

    So what is the answer
    Its Called an agreed value, you tell them what the replacement cost would be and they check it out, and if every one is happy then you pay your premium and cover is then in place for the Agreed figure:thumb:
    Geo
     
    Last edited: Oct 21, 2008
  6. American Dream

    American Dream Read Only Funster

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    It's a tricky one though, especially if trying to insure a Classic Car.

    I had to go to the Club, send photos etc and only then would they give me a value I could send to the insurance company.

    Obviously, if there are other comparable motorhomes Selling/For Sale then the owner can base some sort of figure on them.

    It is, as you say, a case of agreeing an insured value with the insurer (haggling if necessary) prior to shelling out your readies on a policy.:thumb:

    Overinsuring will just cost you money in extra premium costs and , in the event of a claim, the "true" value, as seen by the loss adjusted would be used as a base figure.
     
    Last edited: Oct 21, 2008
  7. haganap

    haganap Funster Life Member

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    The simple answer is find a make or two that are the same,
    See how much they are at DEALERS. Then insure for that sum.

    So, the position you are in, like Geo says, in the event of a theft is that you could walk in ot the dealer and replace your van.

    As for proof of how much you payed, it is irrelevent, as said it could of even been given to you or bought for you by a family member.

    are you gonna share with us what you got for your bargain?/?/:BigGrin:
     
  8. Jim

    Jim Ringleader

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    I agree that agreed values are the way to go, but these seem harder and harder to find them these days and then even harder to agree on a price.
     
  9. Bulletguy

    Bulletguy Read Only Funster

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    £12000 or £6000

    Insure it for whatever figure you dream up....at the end of the day the Insurance company will only pay it's current market value on either being written off or stolen, which is often less than whats in the owners imagination. Everyone likes to think their vehicle is worth a lot more than it really is, but a write off soon brings them back down to planet earth.

    I'd certainly check out your valuation figure which appears to be pretty wild. A difference of £6k is a heck of lot and if the owner was so desperate to "get a quick sale".......why did he not approach a dealer?
     
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