Car Insurance

[Guest HappyBunny]

I have been on 6 websites to compare prices and cover etc for comprehensive insurance for my little car.

 

The one I liked best was NRMA as cover seemed good and price was competitive though not the cheapest. I got 2 quotes for agreed and market value.

I thought Agreed would be better as Market value wasn't stated and I thought it would probably be below what I could get a replacement car for. The quotes I had were:

 

Agreed: $436 (based on insured value of $5200)

Market: $360

 

I was about to buy the Agreed policy but thought I would check out Bingle.com. Their site was very useful. Instead of asking whether I wanted Agreed or Market value it told me that the market value of my car was $5200 and i could insure it for more or less and my premium would be dependent on that value. I put in the market value of $5200 and was quoted $284.

 

My queries are:

 

1. Does anyone know why the NRMA (any other insurers) Agreed value policy premium is higher than the Market value premium if the Agreed value I entered was the same as the Market value (does that make sense)?

 

2. Also, looking at the policy the only difference I can see with the Bingle policy is that they don't protect your NCD and don't provide hire car cover in the event of theft, so to me they look quite competitive. Does anyone have any experience of them good or bad?

 

Thanks in anticipation:smile:

[Guest The Pom Queen]

Hi HappyBunny

You will find that the agreed value can be higher than the market value if you wanted to put this. Also, even though on todays date the market value may be $5200 at the end of the year who knows it could only be $3000 and that is what you would get back whereas if you went for the agreed value you would still get the $5200 back, hence why it is more expensive, hope this makes sense.

[Guest HappyBunny]

Hi HappyBunny

You will find that the agreed value can be higher than the market value if you wanted to put this. Also, even though on todays date the market value may be $5200 at the end of the year who knows it could only be $3000 and that is what you would get back whereas if you went for the agreed value you would still get the $5200 back, hence why it is more expensive, hope this makes sense.

 

Thanks Moving2Melbourne, yes, that does make sense, but stills seems a bit of a rip off to pay so much more when the initial values in this case are the same. Can see why it would make sense to pay more if I was planning on keeping the car several years when it would depreciate considerably but as I am only planning on keeping it a year Bingle would seem the more prudent choice. I've never heard of Bingle, though they are underwritten by AAMI so wouldn't have thought they'd be that bad and can't see that they exclude hail!!!