Insurance talk... "market value of car" means paper value?
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Just wondering if one day you crash your car for good, what will you get from the insurance company?? An equivalent one, or just the paper value??
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I don't know but I think if they were to repair it, they will ask you to go to a particular garage and have it repaired there, covering the cost for you.
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Depends on your arrangement, I would guess market value of the car at that point,
The insurance company can claim back the remaining COE and OMV value or Parf value, so I doubt they have that much to lose. Unless you got some high end import car -
Market value=PARF+COE??? Coz the car dealers prob buy from you at PARF+COE+Body, but after you crash your car, i doubt there's much of a body left to export.Originally posted by tripp_4:Depends on your arrangement, I would guess market value of the car at that point,
The insurance company can claim back the remaining COE and OMV value or Parf value, so I doubt they have that much to lose. Unless you got some high end import car
Or would they actually give you an equivalent car to drive??
Anyway, most insurance policies should have some ambiguous clause that mentions that they have the right to replace an equivalent car, or pay you the market value (ie: paper). Given the depressed values for resale cars, I'd presume the natural choice is to compensate you just the paper value, and not give you an equiv car.
Actually, I'm just wondering if there's any insurance companies out there that give you another equiv car to drive and NOT the paper value - if there's any, I'll swear by them!!
Anyone has experience in this?? -
From what I know (overseas insurance companies) they should give u an amount of what the car is worth at that point, i.e the value of a similiar car second hand. So u can either take the cheque and buy another car or put in the bank. But probably would be related to your policy.
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i see.. dunno abt s'pore tho'... you should know local dealers mark up the prices by about $5k or more, so the selling price is quite high... think need to fork out above what is given in the chq to pay for the replacement car.Originally posted by tripp_4:From what I know (overseas insurance companies) they should give u an amount of what the car is worth at that point, i.e the value of a similiar car second hand. So u can either take the cheque and buy another car or put in the bank. But probably would be related to your policy.
i really wonder whether it's important to buy a reputable policy, or just one to satisfy LTA... the difference can be $1k man... -
After my brush with leasing companies, I realise that the situation when you crash your car and it has to be BER (Beyond Economical Repair) is even worse than you thought. Yes, the insurance covers the market value of the car - but not your outstanding mortgage! Beware those who take 10-year loans and crash the car in the first year - the leasing company will come after you for the 20k shortfall!