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Topic: What does Market Value actually mean?
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10/2/2023 at 1:07pm
Location: London Outfit: Lunar Cosmos 524
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Think that depends on which end of the market you are on! My understanding/expectation on 'market value', which is based on car insurance rather than caravan (but insurance is insurance!), is that it is, or is very close to the trade buying IN price, NOT the retail price, private or trade! Anyone who's ever made a total loss claim (or traded in a vehicle) will know that there is a huge margin between the two, and that the payout will not usually put you in a position to buy a like for like replacement at retail prices without adding additional funding to the pot!
The 'generosity' of the payout does seem to vary from one insurer to another, and sometimes a bit of arguing can raise a insulting derisory offer to a better one. Remember, insurers are all about making profits for their business, not primarily looking after your best interests!
On a older/ageing vehicle, new for old becomes an impossibility to fulfil, as current new products are usually actually an upgrade as well as a replacement, and who should pay for that?
In the classic car world where a new replacement is simply not an option but trade prices do not reflect anything like the true value, a third alternative is available, 'Agreed Value'. An independent valuer places a value upon the vehicle, and the insurers cover to that value. I don't know if that is an option for caravans!
With the current elevated prices for caravans, the chances are that even a trade price payout would come close to compensating you for what you paid for the van a few years ago, but it doesn't help with getting a replacement at current retail prices!
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10/2/2023 at 3:13pm
Location: East Herts Outfit: 1992 Elddis Wisp 450CT + X Trail
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I completely agree with what Monty15 says. I had a vehicle stolen once, a Mazda Bongo, not camper-converted just an 8 seater. The insurance pay out was ridiculous, and came nowhere near buying a similar replacement. When I queried it they pointed out that there were others advertised on ebay for a similar amount to what they were offering, which was correct, but for that price they were probably near wrecks that would probably require enormous sums spent on them to get them to running order. Mine was in good running order and was used every day, but when I pointed that out to them their reply was "well we don't know what condition yours was in, do we?" There wasn't much I could say to that and as I had to replace it with another vehicle quickly, I reluctantly had to accept their offer.
Basically then, in my opinion, "market value" means whatever the insurer wants it to mean.
------------- Best Regards,
Colin
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