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Victory1

Insurance on IQ3

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Hi, I've done a shop around for insurance as I'm not happy with the market value that some insurers are using: I can't replace my car for anywhere near what CarCare are saying the value is. CarCare is a car valuing resource that GoCompare use in case, like me, you've not heard of them.

I don't expect to be in an indentical position if my car was written off but I do want at least half of what it will cost me to replace her should something awful happen. So far DirecLine are saing this: 'our underwriters would use the average of 3 as near identical FOR SALE IQ's as possible at the time of claim' but we can't provide you with an identical car as we don't know if we'll find one.' That in itself felt strange, I thought car insurers paid out and the owner finds a new car?

I've looked at what it would cost to replace mine and it looks to be about 7K, a lot of waiting/sourcing and a bucket load of luck. Has anybody got an insurer that will insure for higher amounts please, I'm happy to pay for it?

Thanks in advance.

Victoria.

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As regards replacement values, presumably the costs you're looking at are for cars sold by dealers - so these would be at retail cost including an element of profit for the selling dealer. Insurers will pay somewhere between trade value and retail value, but won't pay the dealer profit element.

Some insurers now offer the option to replace a vehicle instead of paying a lump sum. Where insurers provide a replacement vehicle, this would be sourced by their contractor, and would be as near identical as they can provide at the time. Presumably in Direct Line's case they compare three similar spec cars to the insured vehicle. They cannot guarantee to provide an exactly identical vehicle as there will be differences in mileage, possibly colour, etc, depending on what is on the market at the time. Where an insurer replaces a car, they will still pay less than the full retail cost as mentioned above as they source it through their own channels, but supposedly you don't have as much hassle in sourcing a replacement.

Some insurers may insure your vehicle on an Agreed Value basis - but this is usually where the vehicle is, for example, a classic car, is unusual, has extensive modifications, etc. 

Aside from the above, where a vehicle is written off, and the insurer offers a settlement figure, usually that figure can be negotiated if you have evidence that, for example, the vehicle is particularly low mileage, in above average condition, etc.

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Hi Mike,

Thanks for your help and for explaning options to me. So far I've looked through Ebay, Gum Tree, Exchange & Mart & Shpock. Direct Line said they'd use three similar spec comparables but definitely only 1.3L on 2014's, I've not found 3 so I'm a bit dubious about that. You are right about main dealers as the most similar is with a dealer at £8999 and appears to have been for sale since October 2019 so overpriced. Pehaps there is a sold price register that underwriters can refer to, I don't know.

My car has no modifications, she took 6 months to find, I love her to bits and she's the best car I've ever seen or owned. Does everything I need with no AG / ear ache!

I doubt I can go down the Agreed Value basis but I'm going to try and get something in writing from DL. It looks like I'm going to have to take more care of her as I intend to keep her going for at least another 10 years!

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Insurers will pay the least out they can in the event of a write off tbh the nearest they get to book value the better is for their bottom line, DL as well as other insurers will do an agreed value on most cars but you may find there is a small premium for it

the IQ in question has been around for sale for 2 years

If you want to see the trade value have a look on, we buy any car

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