So Will Insurance Premiums Rise
So the news recently is thatthe car we own is now worth more. Yes even though our cars have just stood on the drive or have been driven around like mad they have increased in value. For the first time ever used values have risen over the last year raising teh question, does that mean our insurance premiums will increase in value, if our car is worth more?
It si possible that car insurance policies taken out last year no longer protect you to replace the car you now drive. The truth is that it would take larger increases of values to make a real difference in premiums. Yes you car has increased in value but there are only some exclusive models such as large Range Rovers, that values have increased to the point they need to revisit their insurance policies.
Insurance companies should also receive more back from their salvage vehciles, the ones they auction of after they have paid out on a policy. hopefully this should balance out any value discrepiencies, not to mention that the value of your car is taken on face value anyway, until payout, so you have probably insured your car for more that the insurance company would have thought it was worth anyway.
Their is often a belief that by stating the highest value for your car, that is how mcuh you will get back as an insurance claim. the answer is that in mosts cases insurance companies only pay out trade values, what you would have got as a part exchange not the private resale value. So will car insurance premiums go up? They may do but not for this reason so I doubt it!!