1 July 2021
Ever heard the comment that as soon as you drive a new car off the lot its value goes down 20%! While that actual percentage might not be accurate it’s true that vehicle values do decrease over time (unless it’s a classic in which case it may increase). A variety of reasons such as age, kilometres driven, condition and servicing upkeep can affect a cars value.
Depreciation affects how much your client will be reimbursed when making a car insurance claim, since insurance is designed to put them back in the same position they were just before a loss.
If you’ve got a client who’s had a car insured at the same value for a few years then it’s cruital that you update their insurance policy at renewal to make sure they are not overpaying for a car that is losing value.
When a collision occurs we look at the sum insured of the vehicle, what similar vehicles are selling for and the vehicles condition to determine its current Market Value. In many cases the cost to fix the car could actually be greater than the value of the vehicle, in which case it will become a total loss.
Star Insurance motor vehicle policies have a number of benefits & options to help clients protect and recognise the value of their cars.
New Vehicle Replacement
This policy benefit applies for brand new vehicles and says that if your vehicle is a total loss we will replace it with a new vehicle of the same make and model, or the nearest equivalent. This option is available for 1, 2 or 3 years from the date of first registeration.
Second hand purchase guarantee
If you have just purchased a second hand vehicle from a licenced dealer and can provide us the sale and purchase agreement we will settle your total loss claim equal to the price paid for the vehicle providing you have insured it for that value. This benefit applies for the first 12 months you own the car.
Agreed & Fixed Values
For classic cars & hobby vehicles (which only have low use) we are able to offer Agreed Value, Certified Agreed Value and Fixed Value options. We also have a list of valuers we’re happy to recommend if your client wishes to get a better idea of the cars worth.