higher OD value for 3 yrs old car??

[Innova_Boy]

Is it alright to post a higher Own Damage estimate of a car even if it was more than 3 yrs old already?

What I mean is if I insured a 3 yrs old Vios at an owners estimate of say 700k which is equivalent to a brand new price of a Vios, Will it be beneficial for me or will i be disadvantage bec of this scheme? Thanks for inputs..


WBR,

[[archie]]

sir AFAIK, when it comes to car insurance, the fair market value pa rin will prevail when the unit is total wreck beyond repair or stolen.

its not benefical for the owner of the unit kasi mataas ang premium pero hindi niya makukuha yung full coverage of the said amount.

i might be wrong pero eto lang po yung alam ko sa mga car insurance.

[mazingerZ]

Higher ang premium kung papa over declare mo bro, pero the insurance company has limits set by PIRA (Phil. Insurance Rating Agency). Meron silang limits kung magkano lang dapat ang maximum value ng kotse.

[Innova_Boy]

sir AFAIK, when it comes to car insurance, the fair market value pa rin will prevail when the unit is total wreck beyond repair or stolen.

its not benefical for the owner of the unit kasi mataas ang premium pero hindi niya makukuha yung full coverage of the said amount.

i might be wrong pero eto lang po yung alam ko sa mga car insurance.

But from what i read in the policy, the amount stupilated in the policy which is the Owners estimate will be the basis for total wreck or loss, LESS deductible and NO MORE depreciation applies...

I have ask the insurance company and this is exactly written in the policy...

Any other comments? Thanks..


WBR,

[Innova_Boy]

Also depreciaition applies only if not total wreck or loss but by accidents only or body damage according to the policy...

So the only adavantage is if in case of total wreck or loss only, for this case of higher Owner's estimate or amount insured....


WBR,

[mark_t]

Is it alright to post a higher Own Damage estimate of a car even if it was more than 3 yrs old already?

Yes it is alright. I recommend that you accelerate by 15% the depreciation value for OD, 20% even if your underwriter will allow it. And increase your liability cover for BI/PD. I have noticed that most policies that I see are inherently weak as to providing financial protection to its policy holder. Why? Most car policies have only 200k to 300k liability cover for you, in case of a law suit in the event of an accident. This kind of liability cover
is not enough to protect your personal savings. This will only protect the insurance co. in the event of a claim. But not you. Who is paying for it anyway?

Any savings in OD premium cost that you could afford should be spent to
have maximum liability cover. This is what motor insurance is all about.

Remember, Cars are unsafe at any speed. Just the way I see it.


What I mean is if I insured a 3 yrs old Vios at an owners estimate of say 700k which is equivalent to a brand new price of a Vios, Will it be beneficial for me or will i be disadvantage bec of this scheme? Thanks for inputs..

I will never recommend that.


WBR,

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