Dear Insurance Info,
I just got a GL450 2009, though “Tokunbo” yet to be registered. I am considering doing a comprehensive insurance because of the experience I had with my previous ML320.

A lot of times other driver hit me which affected my bumper. Each time, when I looked at the cost of replacement or panel beating, I was left with no option than to just continue driving the SUV with a broken bumper both back and front.

Because naturally, I am the type that doesn’t like to stay on the road fighting to have my vehicle repaired, especially when they start pleading. I end up walking away from the scene and having my vehicle fixed by myself.

Now, I am confused at what rate I should insure my vehicle. It was cheaper for me to bring it in myself as the total value I used in bringing the vehicle into the country is just 50% of the Market value here in Nigeria.

Thanks

Dotun A.

continue reading https://insuranceinfong.com/i-bought-my-car-cheaper-than-the-normal-price-what-price-should-i-insure-it-for/

I also have a question. Does it matter the amount used in buying the car or the value state of the car (body and functionality) during inspection?

Cc
axamansard

you will state the reasonable value of the car. Sometimes the insurers ask for a receipt, other times not.

I have had to undervalue my car for a comprehensive insurance. A risky move, yes. but sometimes it pays off with lower insurance premium. Drove that car for 2 years with only a minor scratch at the back caused by one old man (my other car, not so lucky ). You can also argue that the insurance company took my money for nothing, but i guess that is the cost for peace of mind.

On your main question. Damage to car is fixed at cost by the insurers. if a bumper is damaged, the insurance company will evaluate and fix it or have you fix it and send the invoice. This is usually not linked to insured value of the car.

HOWEVER. and this is a big however. I've never tried this, but i don't think you can undervalue the car by much. between 10 - 20% of the actual market value should be ok. Imagine you insure a 2009 GL450 for 2 million naira while market value is 6 - 8m, then you get a damaged door that would require complete door change, what do you think the insurers will do? . Oga take 2million (less deductibles of course) and we write-off the vehicle.

In your insurance contract, usually the vehicle is declared a complete loss when the cost to fix it exceeds 50% of the stated value of the car.

So play with the numbers and see what best suits you or what you are most comfortable with.