Concept of insurance for the purpose of renewal. Help needed.

[farhan100]

hi guys. Been a long time. how r u all..back here today s i would like to get some opinions/help regarding insurance concept n renewal. I hope im in the right thread dear mr moderators.Anyway heres my scenario..My car insurance due end of this month. Allianz Insurance has been my provider since day one i bought my 325i MSport back in Dec 2011. Last year they quoted 242k (another story for another day) value to be insured. Few days ago i rang them up for latest quote, they came up with a figure of 238k. (annual drop of 1.7% againts real depreciation of ~20% ?)I queried this unrealistic figure of 238k given actual market value of a 2011 unit hovering around 170k private n 185k by dealers, surely insurance company should value it around 210k, not more than 215k. Answer given was due to parts price upward revision. For now lets assume its true.I asked them what happens if i were to insure my car with them at 215k (90% of 238K). I was expecting them to answer me something like (based on the concept/law of insurance i understood s) - if stolen, they would reimburse me 90% of equivalent 2011 car market value. n pay 90% of accident repairs bill. To top up 10% is a calculated gamble i think i can take. Betterments can put aside for a while s my cars only 2 yrs old. But the answer they gave me was surprising- if stolen they would reimburse me full market value not exceeding 215k n pay for repairs in full not exceeding 215k. Sounds good.Another way to put it is if i were to insure car at 180k (~75% of 238k), they would reimburse me full market value up to 180k ( which happens to be real market value) n pay for repairs in full up to 180k. No worries.Then they told me i should go for full 238k (100%); as if my car got stolen, they would pay me off full 238k, (baffling!) not following market value anymore. In case of repairs, status quo. theyll pay in full up to 238k. just s any insurance should.They discourage me to go for any value less than 238k, according to them i might s well go for 180k (since apparently theres no worrying of having to top up 25% repairs bill) value not anything in between. Now comes the KILLER confusion part, when i say id like to go for 215k value ( s it sounds fair to everybody/n it protects from from potentially topping up more than 10%) they said im wasting my own time s i only save ~rm200 but problems/disputes might arise later if anything should happen to my car.. Im not sure what theyr suggesting now ????... suddenly got issues with going below their value?... Mind u this is coming from official bmw dealer speaking on behalf of Allianz insurance in house rep. the latter even appear reluctant to meet me in person, prefering me to call allianz general hotline instead.Im not here to argue how insurance salesman ply their trade. I would like comments/feedbacks/help especially from insurance sifus in particular bmw-allianz. thanks in advance, essentially i welcome everything. Ideally tho i would like to talk to someone highly knowledgeable in this matter, either via this thread or pm or phone or direct, to help me get my insurance concept right again n what figure to go for that will not cause problems to everyone involved.dateline is nearing but no worries no rush..

 

[Yeow]

I believe the RM238K quoted is the ABI sum insured. ABI is a centralised database to provide the current vehicle value to the insurer. This figure is usually higher than the outside market value. If you agree to insure your vehicle to this sum, in total loss case, they'll pay that amount to you (RM238K).

If you decide not to follow the recommended amount, you can lower the amount but when you totaled your car, the amount paid will be the current market value at the point of the accident, not the sum you insure. Of course, if the current market value is higher than the insured amount, you'll only get what the amount insured.

 

[azeL_Inc]

Really? I always thought that regardless of the value insured, they will always pay only the market value (evaluated by insurance?). Didnt know that there is some kind of recommended value.

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