When we purchased our car a few years ago I was surprised to find out that our insurance company (Popular) asked me the price for which we wanted to insure the vehicle. That was pretty easy then. I just used the purchase price as that value.
Now that we are renewing our insurance, and once again WE have to give the current value. In the US, the insurance company will tell you what the value is. I am not in the car dealing business. In the US I could use Blue Book value, which is what the insurance companies I believe use as a guideline.
But, this is the DR and things don't work that way. So, we called the dealer where we purchased the car and they gave us a value of our 2 year old car for insurance purposes. I imagine you could check the newspapers and maybe spot a model like yours for sale, but that would be a hit or miss solution. However, please read on as to what this all means.
If you pick a value too low, you risk having to pay more money out of pocket should the car be a total loss in an accident. One benefit is that your insurance should cost less if you are underinsured.
However, if you pick a value that is too high, not only will you pay more for the insurance than you need to, but the company will have the option through its adjusters to tell you later after an accident that they will not pay you the full value for which you actually paid for that insurance. I think they need a change in their system. After all, they accepted your money for that value of vehicle. Interesting that they can violate this agreement at will. But this is the DR and that is the way I understand this works.
Has anyone else realized this is the system here?
Any other ways to set a value that are commonly used in the DR until the insurance companies catch up with that job?
Now that we are renewing our insurance, and once again WE have to give the current value. In the US, the insurance company will tell you what the value is. I am not in the car dealing business. In the US I could use Blue Book value, which is what the insurance companies I believe use as a guideline.
But, this is the DR and things don't work that way. So, we called the dealer where we purchased the car and they gave us a value of our 2 year old car for insurance purposes. I imagine you could check the newspapers and maybe spot a model like yours for sale, but that would be a hit or miss solution. However, please read on as to what this all means.
If you pick a value too low, you risk having to pay more money out of pocket should the car be a total loss in an accident. One benefit is that your insurance should cost less if you are underinsured.
However, if you pick a value that is too high, not only will you pay more for the insurance than you need to, but the company will have the option through its adjusters to tell you later after an accident that they will not pay you the full value for which you actually paid for that insurance. I think they need a change in their system. After all, they accepted your money for that value of vehicle. Interesting that they can violate this agreement at will. But this is the DR and that is the way I understand this works.
Has anyone else realized this is the system here?
Any other ways to set a value that are commonly used in the DR until the insurance companies catch up with that job?