Insurance quote question

BigDan1190 · Could Be A Chat Bot Joined: 03 Mar 2010 Karma :

Whilst looking at insurance quotes for a possible next bike, I realised something;

I was putting bike value at £1000 as that was the amount left in from a previous quote. It was quoting me at £675 for the year.

I changed this to see if it makes a difference, put the value of the bike at £10,000. My insurance quote somehow went up to nearly 3 grand.

Now, I get that this makes sense on the face of it - but if my bike is stolen, it doesn't matter what I value the bike at because they would then pay out the market value... right?

JP7 · World Chat Champion Joined: 22 Dec 2008 Karma :

The insurance companies make it work to suit themselves. If it's worth £4k and you insure it for £10k, you'll get £4k. If you insure it for £2k, you'll get £2k. They'll pay market value, unless you undervalue it, in which case they'll pay out only for the risk they insured.

-Matt- · World Chat Champion Joined: 28 Apr 2013 Karma :

If you undervalue it you can be damn sure thats all they'll give and not a penny more.

Argueably though, 'market value' is normally a p-ss take as they will find one or another reason to consider the bike one grade below the 'condition' excellent,very good,good etc that would be the factor in deciding its 'market value' - therefore underprice you.

As with most things insurance related its sadly 50 percent of little use in many aspects, just put in a rough amount, fiddle around by 300-500 quid value over a few quotes and see what you think works out best is the best bet i find.