insuring 968 for 5k ? is it legal ?

[proenca]

Hi there,

As some of you might have read, the insurance company is getting on my nerves with the 968 - i even got thinking going the 964 route, much cheaper to insure, go figure !

But I think for my budget ( around 10/11k ) I will get a good 968 instead of a sub-par 964..

So this cross my mind : is it illegal to insure your car that is worth 10k and declaring only 5k ? Ie, if I get hit and my insurance has to pay, what happens ? they only cover until 5k ? after that is me ? or they will say "oh sorry sir, your car is worth much more than you declared, therefore was illegal and we pay nothing"?

 

[Guest]

Why would insuring it for less benefit you?

 

[8Boy]

ORIGINAL: nicola turtill

Why would insuring it for less benefit you?

Only benefit would be to keep the annual premium down but in the event of an accident claim they would only pay out up to £5k as an absolute maximum I'd imagine.

 

[proenca]

if for example you can insure a car up to 5k of value, you can insure a car if you are sub/30 * im 29 * as in TPF.. whereas more than 5k, has to be Compreensive insurance, which boost the premium.

 

[RSGulp]

I wouldn't do anything less than insure you car fully comp for what it's actually worth. When your insurance company quotes ask them what difference higher excesses will have on the premium (it should bring the premium down as you will be bearing a lot of your own risk).

If as mentioned above you're willing to lose up to £5k of the cars value in the event of a total loss write off, you could bump up your excess to say £2,500 and see what the premium comes in at.

 

[968CSReading]

Try and shop around for the best price you can and wait until you get to 30 when the premium should drop and a classic policy will allow you to agree a value for the car.

Mine was insured for £11500 and this is what they would have paid out. It only cost an extra £15.00.

 

[timward]

dropping the value wont make a helluva lot of difference to the premium, which will be determined largely by your age, NCB history, postcode and the group of the car

 

[paulf968]

I think you will find that if you insure it for half the true value, then on a write off any insurance company would do the following calculation.

You insured it for half the true value at £5K, ie your 'error', therefore we will only cover half the risk you declared ie only pay you £2.5k, ouch!! hardly worth getting the insurance, so go TPFT !!

paul f

 

[georgethackray]

I'd agree with the others and insure your car for it's full value.

Some years ago I remember a news article about under insuring your house contents - apparently, if you had say £10,000 worth of items in the house, but you were only insured for £5,000 then they would only pay out 50% on any damage, so if your £2,000 plasma TV was nicked, you'd get back only £1,000.

If the same thing applies to cars, then any accident damage you incur would only be covered for 50% after excess.

I would give http://www.rhclassicinsurance.co.uk/ a try - they've insured my 944 cab for 5000 miles per year for £245.

Good hunting!