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As I mentioned in an earlier post how many are increasing the car value in their insurance renewal to cover the cost of a like for like replacement, assuming you can find one. You can try haggling with the insurance company but if you have a value in the policy that will be their cap.
 

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Discussion Starter · #102 ·
As I mentioned in an earlier post how many are increasing the car value in their insurance renewal to cover the cost of a like for like replacement, assuming you can find one. You can try haggling with the insurance company but if you have a value in the policy that will be their cap.

Although most comparison sites ask for an estimated value most policies state they will pay "Fair market value" depending on vehicle, mileage and condition. This is usually significantly less than the persons estimate.

I've never seen worded in the policy anything about the estimate being a cap.

Agreed value policies are available but rare and expensive and usually reserved for classics.
 

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Fair market value is usually meaning they won't pay over the odds if you overvalued your car. If I insure my car at a value of £5000 and pay the premium based on this and then write it off and it would cost £10000 to replace like for like I am not convinced many insurance companies would pay that. I hope I am wrong in these strange times of increases in used car values when the opposite is the norm.
 

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Fair market value is usually meaning they won't pay over the odds if you overvalued your car. If I insure my car at a value of £5000 and pay the premium based on this and then write it off and it would cost £10000 to replace like for like I am not convinced many insurance companies would pay that. I hope I am wrong in these strange times of increases in used car values when the opposite is the norm.
Indeed! Hence the earlier questions about GAP insurance on a used car. As Logiclee showed in his example, I've been doing a bit of research on behalf of my friend. If you take out GAP for what they tend to call "Return to Invoice" or words to that effect, the GAP insurer pays any difference between what you paid for the car at purchase, as shown on the invoice, and what your regular insurer deems to be fair market value at the time it is declared a total loss. Which may be 2, 3, 4, or in a couple of GAP insurer cases 5 years from the date when you buy it. In return for a 1-off premium up front of £100-£300ish, depending on how long (time period) you extend the cover for. The standard period that dealers seem to offer is 3 years (so that it ties in with PCP finance and the like).

Logiclee (or anyone with knowledge of GAP?) please correct what I've said in previous paragraph, if I've understood that wrong?

There are a couple of other options offered by GAP insurers. Such as "Replacement vehicle cost" (cost a good bit more), or one that is most aimed at PCP end of contract or other finance values.

In the current used car market then, which is almost unprecedented in my lifetime, where the whole pattern of values is turned on its head. Much more like house prices, where the longer you hang on, the more the car's value goes up. Then it seems to me like GAP insurance against the Invoiced value you actually paid, could be a Good Idea? More so than in conventional times, where used car prices fall over time. To guard against the possibility of the used car market returning to "normal" (or could that be called "sanity"?) over the foreseeable future. If that happened, the price paid today for a used car, could look very expensive indeed, compared to what it is valued at by the regular insurer in 3 or 4 years time?

That's also why I believe this discussion GAP insurance is relevant to this thread on "Increase in Used Prices". It's because of the (massive - like 50-100%) increase in used prices over the last 12-18 months, that GAP takes on a whole new potential for a used car buyer.

Further comments or suggestions welcome...... This has been very useful so far! (y)
 

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When we changed our Yeti for a Karoq with about 18 months remaining on the GAP insurance, our GAP insurers, ALA, 'froze' the remainder of the premium we paid for just under 12 months as most insurers pay the price paid for the vehicle for one year, so I renewed the policy after 11 months and the premium was reduced accordingly. Our current insurer, SAGA, pays the invoice price for two years. Never use the dealer for GAP insurance - they receive a significant amount of commission, which the punter pays.
 

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Discussion Starter · #106 ·
Logiclee (or anyone with knowledge of GAP?) please correct what I've said in previous paragraph, if I've understood that wrong?
Yes that's correct.

And as you've seen doing GAP yourself is relatively cheap compared to the rip-off prices dealers charge. It's one of their big earners, just the same as Alloy/tyre insurance and paint protection.

As I've had 9 of our Skoda's from the same salesman at the same dealership he now doesn't even ask just says sign the form to say I've been offered them and don't want them. :D
 

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In many cases it's more a question of "Buy now, before the prices rise even more.". Paid not far short of that for my second Yeti, 3 weeks ago.

With the semiconductor shortage set to last at least another 12-months, if not longer, supplies of new cars will remain at their lowest since 1950s. Therefore used car values have farther to go yet, before they peak?
 

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Discussion Starter · #109 ·
The L&K at Rainworth for sale at £22500 has sold.

And I know at the moment getting any money off is a struggle.
 
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I don't think (m)any insurers would entertain an increase in value. They would say that the price 'bubble' would soon pop.
Untrue until the chip shortage ends, but as we all know, insurance companies will do anything to avoid paying out.
This from my Honda dealer's auto pricing engine. It goes up approx £100 every 2 weeks. I paid £29740 for it 18 months ago!
The only ways to take advantage of this price bubble are to........
1. Sell and give up driving!! (NEVER!)
2. P/X and buy NEW, as prices are fixed. (guess what I'm doing!)

SKODA KAROQ ESTATE
1.5 TSI Sport Line 5dr DSG
29/06/20208500 miles


Showroom Condition UP TO £27,979.00
An example of Showroom Condition is a vehicle that needs no reconditioning work. Paint work is free from scratches, chips and dents, interior/exterior trim and wheels are unmarked. Tyres need to have a minimum of 6mm tread across the face of the tyre. The vehicle must be in the original factory condition with all keys and a documented service history, warranted mileage with a minimum 6 month MOT and maximum of two owners.
 

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I don't think (m)any insurers would entertain an increase in value. They would say that the price 'bubble' would soon pop. Untrue until the chip shortage ends, but as we all know, insurance companies will do anything to avoid paying out.
Indeed! That’s why for the first time in my life, I’ve taken out GAP insurance on the “new” Yeti. For back to invoice value. Even though the car will be almost 8 years old by the time it expires. Bought online from an established broker who uses UK underwriters based at Lloyds, rather than a “fly by night” provider based in Gib or similar. So there’s a better chance the underwriters will still be there, should I need to claim in (say) 3.5 years time?

Which reminds me, still haven’t seen the V5C yet. Was told to expect a 5-6 week wait. Due to the backlog at Swansea caused by the high volume of used car transactions being processed. Seems like there is something of a market frenzy going on. In transaction volume as well as prices. 1/3 of the enquiries I’ve had for the 2010 Yeti, have been from breakers desperate to get hold of cars to disassemble. They’re even experiencing a dry up of crash damaged cars coming in, because the prices mean more damaged cars are “economically repairable”. Never mind buyer of last resort based on minimal value, for an otherwise healthy car.
 

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Been out of UK for nearly 15 years now so a bit out of touch with car insurance matters but as I recall it used to be the case that if you couldn't come to a cash settlement agreement for a write off you could tell the insurer to supply you with an equivalent car the premise being that insurance is intended to put you back in the same position you were before whatever happened.
 

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Been out of UK for nearly 15 years now so a bit out of touch with car insurance matters but as I recall it used to be the case that if you couldn't come to a cash settlement agreement for a write off you could tell the insurer to supply you with an equivalent car the premise being that insurance is intended to put you back in the same position you were before whatever happened.
Yup, the Road Traffic Act insurer, assuming you also have "comprehensive" insurance with them as well as 3rd-party, will pay you their estimate of the car's value at the time. Depending on the insurer, they may have an option you can invoke for them to source a replacement car for you. But that will only be to an equivalent value of the car they've agreed to pay you out on. Which may not buy much in today's market. Depending how old your car was before "beyond economic repair". Personally I would want to choose and source a car myself, rather than have some unknown from an insurance company with no knowledge of my needs or tastes choose one for me. But each to their own.

"GAP insurance" is an extra you can buy. Usually from a totally different insurer. To cover the difference between what your regular annual insurer pays out, and what you paid for the car originally. Provided you opt for "back to invoice" cover. Originally only commonly sold on new cars (to cover the cost of any outstanding finance). But can be arranged on used cars too. As I've just done. In the current market, the car's value may be a lot less in four years time. IF the market returns to "normal" by then*. My second Yeti will be almost 8 years old by the time its GAP insurance expires.

* I have a suspicion that what we are looking now for used car prices, may become the "New Normal". Rather than the market ever returning to what used to be expected. Especially in the run up to and after the sale of new ICE cars being banned. When people will want a reliable ICE car because they either can't afford, or have no way to charge an EV.
 
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Never heard of 'gap insurance' before today which underlines just how out of touch I am!

I can see a potential sting in the tail to the situation though insomuch as many people who have hitherto eschewed buying second hand but do so now might suddenly wake up to the fact that it's not such a bad strategy after all resulting in a cementing of prices or further escalations.
 

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Never heard of 'gap insurance' before today which underlines just how out of touch I am!
GAP = Guaranteed Asset Protection
 

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Which reminds me, still haven’t seen the V5C yet. Was told to expect a 5-6 week wait.
The estimate for a DVLA waiting time has proved fairly accurate when renewing my photocard licence.
Nearly all licences that expired last year were given an automatic 11 month extension as a consequence of Covid.

I duly applied 11 months later, and was informed by Post Office staff that I could expect to receive my new licence in 10-11 weeks.
It has arrived today after a 12 week wait.


Another aspect of motoring that was delayed by Covid ... All MoT pass certificates for private vehicles were given an automatic six-month extension.
One consequence of this is that most MoT stations are now rushed off their feet for six months of the year, and twiddling their thumbs for the next six months.

I can see this continuing for the foreseeable future, as the natural dilution of MoT anniversary dates is slowed down by reduced new car sales.
 

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The world has gone mad! - Again!!!.
I know it's not a Yeti, but I just had a look at used Jimny (Very low mileage) prices again, and thought 25k for a used one was way too much and who would be mad enough to buy one!, I should have bought 4!!!.
They are selling for up to 36k now!!!!!! o_Oo_Oo_Oo_Oo_O
 

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That's 'cos they are no longer available new and are considered to be the best light off roader with serious capability.
 

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You can now get a Jimny commercial vehicle. Looks exactly the same but has no rear seats. When I had both my Jimnys in the past, I took the back seats out and floored and carpeted the rear. They are pretty grim to drive but for use off road the are brilliant.
 
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