Have I got this right?

[warrenpfo]

I bought my 2003 landcruiser 2 months back for lets say £20 000. On calling my insurer to discuss my renewal with them he asked me what I thought the value of the vehicle was. I said £20k as it was only bought 2 months back and if it was stolen tomorrow that is what I would want back.

He then went on to explain that it does not work like that and that they only pay back the blue book value of the vehicle.

Now I don’t know what the blue book value is but am quite sure it is no where near £20k so why the hell do they ask me what the value of the vehicle is to me. He said its because it’s the value that they base there premium quote on rather than the book value.

Is this how all UK insurers work because I may have been very naive or stupid but had thought if the value of the premium is based on what the vehicle is worth to me how do they get away at only paying me the blue book value.

On a side note he said the best thing to do is find out the book value and call back to adjust the value of the vehicle to me and that should drop the annual premium.

Am I the only one who has just found out that my insurer will not pay back what I paid for a car only 2 months back if it was stolen or written off or am I the only numpty that thought if I quoted what a vehicle was worth tome and was paying a premium for that then that is what I should get back..

 

[warrenpfo]

I have since been informed by my work mates that I need to take out Gap insurance and this will cover me.

Do we know anyone in the trade who can help get the blue book values?

 

[Gary Stockton]

Parkers should give you a fairly indicative value I'd have thought?

 

[Doodle]

Yes, it's standard policy to pay book values. The problem is that the book value is what the trade values when taking a vehicle in, not punting it out.

Therefore, it should be standard policy for any switched on punter to tell them to stick their first offer, and provide evidence of the true retail value of similar vehicles to yours that are currently available. At this point they normally fold and up their offer to close to the values you've supplied, realising that they've got a fight on their hands and you won't be fobbed off with a substandard offer. The only downside is that this takes a little time toing and froing.