Car Insurance

[pozza]

Originally Posted by last fairlane

Hi all
Im lost with the insurance prices
We have a 2004 Territory Ghia We got in 2012
when I bought it for cash I insured it with APIA
for an agreed value of $20000 at a cost of $400 a year
last year they sent me the renewal
and stated agreed value of $15000 at $450 a year
now this years notice came and said agreed value
of $9500 and a cost of $550 a year
I dont know how they come to that price
when I had agreed value
I had injected gas fitted last year and told them so
now there is no way you can buy an unmarked 4X4 Ghia
with 19 inch wheels and tinted windows and 19000ks for $9500
we have three cars with APIA also house and contents
must be time to look around also we have a rating one for life
what gives anyone here know
thanks John

I had the same thing happening to me with APIA as well, every year my agreed value would drop but my premium would increase. Strangely enough though my car was written off as a total loss a couple weeks back and they paid me out $1,300 more than my agreed value. Go figure

[xisled]

Originally Posted by pozza

I had the same thing happening to me with APIA as well, every year my agreed value would drop but my premium would increase. Strangely enough though my car was written off as a total loss a couple weeks back and they paid me out $1,300 more than my agreed value. Go figure

When looking at your agreed value and the cost of your policy you need to remember the agreed value of the car is a very small part of a premium.

When a insurance company calculate a premium, two main factors come into play. The cost of an average claim for your type of car and the cost of claims in your postcode for the same type of car.

The insurance company does not need to factor in a huge amount for a total loss as the percentage for total loss claims is very small compared to the number of claims lodged. This is why the agreed value on a car can drop but a premium will increase.

When looking at repairing a car for a bumper bar for example, the bumper bar will cost more to buy each year, the cost of paint will be more expensive each year and the cost of the panel beater to pay the employee to fix the car will increase each year. So each year the average cost to repair a car increase.