Insurance question

[happynoodleboy]

Hi guys.

I would like to ask some of the knowledgeable members a question.

Scenario.

I have a 2002 325i E46 BMW.
Said BMW is insured for R82500.00 - was updated a month ago, according to some Mead and someone else book thingie..

I know for a fact that I will not get more than R40 000.00 for the vehicle if I sold it, either privately or trade in.

Now while driving home, said BMW sustains serious suspension damage while the driver swerves to avoid hitting, let's say, a kid on a bicycle.

Car is written off by insurance.

Will I get R82 500.00 or will I get closer to R40 000.00.

In other words will they pay out what the car is insured for or what the car is actually worth ?

Thank you.

The names and details of those involved may have been changed to protect their identity.

 

[Necropolis]

You should get what the car is insured for, I would imagine.

 

[saturnz]

Hi guys.

I would like to ask some of the knowledgeable members a question.

Scenario.

I have a 2002 325i E46 BMW.
Said BMW is insured for R82500.00 - was updated a month ago, according to some Mead and someone else book thingie..

I know for a fact that I will not get more than R40 000.00 for the vehicle if I sold it, either privately or trade in.

Now while driving home, said BMW sustains serious suspension damage while the driver swerves to avoid hitting, let's say, a kid on a bicycle.

Car is written off by insurance.

Will I get R82 500.00 or will I get closer to R40 000.00.

In other words will they pay out what the car is insured for or what the car is actually worth ?

Thank you.

The names and details of those involved may have been changed to protect their identity.

they will payout the lowest amount they can, and if you are insured, they definitely won't base it on what its "worth"

moreover worth means many things, you need to differentiate between replacement value, trade in value, market value, book value and any other values they think up to confuse you and steal your money.

so my guess is they will pay you R40 000.

 

[Pitbull]

Hi guys.

I would like to ask some of the knowledgeable members a question.

Scenario.

I have a 2002 325i E46 BMW.
Said BMW is insured for R82500.00 - was updated a month ago, according to some Mead and someone else book thingie..

I know for a fact that I will not get more than R40 000.00 for the vehicle if I sold it, either privately or trade in.

Now while driving home, said BMW sustains serious suspension damage while the driver swerves to avoid hitting, let's say, a kid on a bicycle.

Car is written off by insurance.

Will I get R82 500.00 or will I get closer to R40 000.00.

In other words will they pay out what the car is insured for or what the car is actually worth ?

Thank you.

The names and details of those involved may have been changed to protect their identity.

Depends on the value the car is insured for - Trade, Market or Retail.

They will pay you out the book value of the car which I think would be the R 82 500 you mentioned being updated minus the excess.

 

[furpile]

They have to pay you the value they insured it for. That is why they look at the trade and retail value (according to the book). Many times the actual market price for a car is lower but they base it on those values. The only time they can pay less is if there was something wrong with the vehicle and you didn't inform them (prior damage as an example). So if it is written off they will pay you R82 500. My car also has a lower market value than what it is insured for, the insurance companies determine the value of the car, not you. With household you have to tell them what your possessions are worth, and that is where you can be caught out by over/under insuring.

 

[F1 Fan]

They pay you out the book value of the car. So if the book value is 85k, then that is what they will pay out.

 

[happynoodleboy]

They pay you out the book value of the car. So if the book value is 85k, then that is what they will pay out.

Got this from a few other sources as well.

Thanks for the replies guys. Been wondering about this for a while.
Would it not make more sense for them to insure it at the lowest value.

Any one know how they work out what replacement value is ?

As far as I understand the car is insured for replacement value, or book value.

 

[saturnz]

replacement value in pratical terms means what would it cost you to get another similar condition vehicle

so in this sense replacement value equals the market value of the car on the second hand market, if the car is modified or customised those costs can be included in replacement value.

 

[Pitbull]

Got this from a few other sources as well.

Thanks for the replies guys. Been wondering about this for a while.
Would it not make more sense for them to insure it at the lowest value.

Any one know how they work out what replacement value is ?

As far as I understand the car is insured for replacement value, or book value.

They can't.

Remember they need to put you back in the same financial position you where in before the accident. At that stage you where driving a R 82 500 car and it would cost you R 82 500 to buy one second hand from a dealership floor. So they are putting you in the same financial situation you where in before the accident.

By your questions it sounds like you need to repay the insurance an amount they paid out a client for scraping his car and you're the guilty party

 

[Hemi300c]

PLEASE don't take advice from a unlicensed person or a non registered FSP!!

Some of the comments are way off line and totally incorrect.

1)There are a few different 2002 325i E46 BMW's soi be more specific and you could get the correct value.
2)Different insurers do different basis of settlement ie Market, Retail or market+retail /2 for example.
3)Your policy as it stands will state they will pay you what is in 2) above and no more (less deductibles)
4)There are quite a few insurers which exclude Wheel/suspension damage unless an accident and there is "body" damage as well so be very weary of this
5)There is movement of the insured value if you can prove things like low mileage, new engine etc
6)Probably the most important of all -get a broker and work through a reputable broker or you will never know if you are contributing towards a big black hole whilst thinking you are covered.

 

[happynoodleboy]

By your questions it sounds like you need to repay the insurance an amount they paid out a client for scraping his car and you're the guilty party

Nope, just one of the many insurance fine points I have always wondered about.

More to follow....

 

[happynoodleboy]

PLEASE don't take advice from a unlicensed person or a non registered FSP!!

Some of the comments are way off line and totally incorrect.

1)There are a few different 2002 325i E46 BMW's soi be more specific and you could get the correct value.
2)Different insurers do different basis of settlement ie Market, Retail or market+retail /2 for example.
3)Your policy as it stands will state they will pay you what is in 2) above and no more (less deductibles)
4)There are quite a few insurers which exclude Wheel/suspension damage unless an accident and there is "body" damage as well so be very weary of this
5)There is movement of the insured value if you can prove things like low mileage, new engine etc
6)Probably the most important of all -get a broker and work through a reputable broker or you will never know if you are contributing towards a big black hole whilst thinking you are covered.
View attachment 227914

Thanks a lot for your advice / input.

Firstly, apparently I am a complete idiot.
I drive a 2003 model, not 2002. Had a 2002 BMW F650 GS, must have gotten them mixed up.

Anyhoo, this is what it says on my schedule....



Thanks again for the replies guys, there are a few things I never understood lekker and everyone on here is so darn nice and helpful

Also, apparently i have dyslexia now as well. R85 200.00 vs R82 500.00

 

[happynoodleboy]

Here is another one...

My driver's license card thingie has expired.

I get pulled over by Mr Traffic Ossifer.

He notices this when inspecting the card and wants to give me a ticket for driving with an expired license.

Am I correct in saying that he cannot give me a ticket for driving with an expired license, as my drivers license is 100% valid.
He can, however, issue me a ticket for failing to provide valid proof of said license.

In other words, my actual license, that which permits me to operate a vehicle on a public road, cannot expire.
It may be revoked, cancelled or such for whatever reason, but just because the card expired does not mean I do not have a license.

Same with a vehicle license.
The disc you stick on the car may be expired, but unless the car is declared non roadworthy, the license is valid.
Again, I can be written up for not displaying valid proof of it.

Am I correct or way off?

 

[Pitbull]

Here is another one...

My driver's license card thingie has expired.

I get pulled over by Mr Traffic Ossifer.

He notices this when inspecting the card and wants to give me a ticket for driving with an expired license.

Am I correct in saying that he cannot give me a ticket for driving with an expired license, as my drivers license is 100% valid.
He can, however, issue me a ticket for failing to provide valid proof of said license.

In other words, my actual license, that which permits me to operate a vehicle on a public road, cannot expire.
It may be revoked, cancelled or such for whatever reason, but just because the card expired does not mean I do not have a license.

Same with a vehicle license.
The disc you stick on the car may be expired, but unless the car is declared non roadworthy, the license is valid.
Again, I can be written up for not displaying valid proof of it.

Am I correct or way off?

You're driver's licence on system is 100% valid. But your proof of licence has expired and he can write you a ticket for the expired proof of licence. Just like they can fine you if you don't have it on you when pulled over. However you have 21/28 days grace to renew it.

Exactly the same applies to the vehicle's licence.

If you apply this to your first post:
Insurance will still honor the agreement if: The vehicle is/was roadworthy still when the accident occurred even if the disc expired. *They will collect the fees outstanding though if the car is a write off. And you will have to get a temp Licence and renew your driver's licence before they settle the claim.

 

[happynoodleboy]

You're driver's licence on system is 100% valid. But your proof of licence has expired and he can write you a ticket for the expired proof of licence. Just like they can fine you if you don't have it on you when pulled over. However you have 21/28 days grace to renew it.

Exactly the same applies to the vehicle's licence.

If you apply this to your first post:
Insurance will still honor the agreement if: The vehicle is/was roadworthy still when the accident occurred even if the disc expired. *They will collect the fees outstanding though if the car is a write off. And you will have to get a temp Licence and renew your driver's licence before they settle the claim.

Thank you sir.

/stomps off looking for spietkops...