fair market value?

[roycruz]

Our comprehensive insurance already expired on our five year old car and we're looking at other options to our existing insurance. I tried to get an online quote from Direct Link but it asks for the fair market value. Where can I get that?

thanks

[niky]

Check online ads for cars of the same type and same year to get a ballpark figure. Otherwise, calculate it yourself. If I recall, it's a 10-15% depreciation per year average for most cars. Price x 0.9 x 0.9 x 0.9 x 0.9 x 0.9 for a five year old.

[roycruz]

Check online ads for cars of the same type and same year to get a ballpark figure. Otherwise, calculate it yourself. If I recall, it's a 10-15% depreciation per year average for most cars. Price x 0.9 x 0.9 x 0.9 x 0.9 x 0.9 for a five year old.

thanks! i don't know why the site requires a fair market value without explaining how to get it :-)

[mark_t]

thanks! i don't know why the site requires a fair market value without explaining how to get it :-)

Ang ibig po sabihin ay kasalukuyan halaga ng inyong sasakyan.

Kayo po ang may hawak ng INVOICE ng binili ninyo ito, So from the INVOICE deduct 20% depreciation for the first year then
10% to 15% every year.

Sometimes, in the case of OPEL brand these does not apply.
Collision History also severely affects Fair Market Value.

It is your car so you should be able to provide your insurable interest. That is how it works.

For example may BATO ka, gusto mo ipa insure. Then Magkano ang tanong ng Underwriter?

Insurable interest = Magkano mo gusto ipa Insure?

[roycruz]

Ang ibig po sabihin ay kasalukuyan halaga ng inyong sasakyan.

Kayo po ang may hawak ng INVOICE ng binili ninyo ito, So from the INVOICE deduct 20% depreciation for the first year then
10% to 15% every year.

Sometimes, in the case of OPEL brand these does not apply.
Collision History also severely affects Fair Market Value.

It is your car so you should be able to provide your insurable interest. That is how it works.

For example may BATO ka, gusto mo ipa insure. Then Magkano ang tanong ng Underwriter?

Insurable interest = Magkano mo gusto ipa Insure?

Thanks. I have no idea on how to compute the rate of depreciation for cars and I'm sure a lot of possible customers don't know too. A simple formula similar to your explanation would have sufficed. I ended up getting an insurance from our old provider who readily gave a quote.

[derf8666]

The rate of depreciation is stated in your policy jacket:

For private cars, sedans (civic, corolla, lancer, etc):
Up to 3 years, no depreciation
3-4 years, 20% on cost of parts
4-5 years, 25%
5-6 years, 30%
6-7 years, 35%
more than 7 years, 40%

Add 5% each for suv and commercial vehicles.

Example you have a 2009 honda civic bought june of that year and you met an accident that necessitated the replacement of parts worth 100,000, your depreciation expense would be 20% of 100,000 = 20,000pesos. This will be on top of your deductible. Asuming your deductible is 2,000, your net participation would be 22,000 for that particular accident.