Insurance for the mustang

[paulb351]

The new for old cover is going to be pointless. Most insurance companies have a limit on how long it takes to source a replacement car...usually a month or two, and if none is available, then they will just pay you out. New mustangs are not going to be available as replacement for years, if ever..

Easy fix for that. Make sure you have agreed value under policy so you at least get the cash... Most insurance co pay out if they can't source vehicle in 30 days

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[Jostang]

Easy fix for that. Make sure you have agreed value under policy so you at least get the cash... Most insurance co pay out if they can't source vehicle in 30 days

As the car gets older the agreed value reduces.

The appeal of GIOs lifetime new for old cover is if, for example, you have a 10year old mustang and it gets written off, they will order you a new mustang (thats if ford continues bringing them into Oz!) So say it costs $500 extra a year for the premium for 10 years, for $5000 extra insurance payment, you will receive a brand new $60,000 mustang - that's IF your car gets written off.

 

[Bobsp12]

or, if one is not
available within that time, it is possible to provide you with a new car that
is in our opinion a similar make or model to your car[/I]

The problem is, they will not be available within three months.....I would like to see what their idea of a similar make or model is.....

There was a recent story in a national newspaper on this very subject, that replacement cars on insurance policies are not often replaced due to availability issues...a payout is the usual result.

 

[Jostang]

The problem is, they will not be available within three months.....I would like to see what their idea of a similar make or model is.....

It states they would supply or order a new car within 90 days. Why wouldn't they be able to order another mustang within 90 days? Even if it was only delivered 12 months later! LOL

Even if the mustang wasn't available, I'd assume a similar make or model would be a coupe with a similar value. You would still be ahead in terms of depreciation of the Mustangs value.

 

[paulb351]

It states they would supply or order a new car within 90 days. Why wouldn't they be able to order another mustang within 90 days? Even if it was only delivered 12 months later! LOL

Even if the mustang wasn't available, I'd assume a similar make or model would be a coupe with a similar value. You would still be ahead in terms of depreciation of the Mustangs value.

Fine print says delivery not order so they pay cash instead so go agreed value for a sensible amount and jump on the order queue with the cash. My view is save your premium as I. The end is chance of a payout is minimal in any case...

 

[V XIII]

Agree that why my policy is cheap grab the cash re order and wait AGAIN
Or better still don't damage the car

 

[G RUSH]

It states they would supply or order a new car within 90 days. Why wouldn't they be able to order another mustang within 90 days? Even if it was only delivered 12 months later! LOL
.

LOL who would wait 12 months for a mustang??????

 

[Bobsp12]

The other issue with the new for old dealio is that you are tied to that policy forever and then are at the mercy of the insurer, re premiums.
Normally a policy increases exponentially every year if you stay with the same insurer....
The initial low cost only lasts for a year and then you have to change insurer to get another cheap deal or try re-negotiating with your current one. If you are stuck with the same insurer to maintain the new for old caper, then they can charge what they like, as you have no bargaining power, because cancelling your policy will negate your new for old benefit.
Dont forget that insurance companies are like casino's. ....the house always wins....they are constantly looking for new and wonderfull ways to extract your money from your wallet into their bank account.

 

[Jostang]

The other issue with the new for old dealio is that you are tied to that policy forever and then are at the mercy of the insurer, re premiums.
Normally a policy increases exponentially every year if you stay with the same insurer....
The initial low cost only lasts for a year and then you have to change insurer to get another cheap deal or try re-negotiating with your current one. If you are stuck with the same insurer to maintain the new for old caper, then they can charge what they like, as you have no bargaining power, because cancelling your policy will negate your new for old benefit.
Dont forget that insurance copanies are like casino's. ....the house always wins....they are constantly looking for new and wonderfull ways to extract your money from your wallet into their bank account.

GIO appears to be a reputable company so whilst I agree some of your points are possible, most would be unlikely (famous last words!)

Also, if there was exponential creep in the premiums, over a 10 year period you would still be well ahead if your car was to be written off.

A new mustang is worth say $60K.
A 10 year old mustang would be worth say $30K. (ie $30K loss in value)
You may pay an extra say $5k in premium over that time.
So basically you are paying $5k extra in insurance to protect $30K.
If you keep your car longer than 10years, you will potentially be even further ahead.

 

[ssb]

The other issue with the new for old dealio is that you are tied to that policy forever and then are at the mercy of the insurer, re premiums.
Normally a policy increases exponentially every year if you stay with the same insurer....
The initial low cost only lasts for a year and then you have to change insurer to get another cheap deal or try re-negotiating with your current one. If you are stuck with the same insurer to maintain the new for old caper, then they can charge what they like, as you have no bargaining power, because cancelling your policy will negate your new for old benefit.
Dont forget that insurance companies are like casino's. ....the house always wins....they are constantly looking for new and wonderfull ways to extract your money from your wallet into their bank account.

I don't get that bit about the policy increasing exponentially?

you mean for a New for Old policy only? All other car insurance policies that I've seen tend to go down because the value of the car goes down and you start getting into things like no claim bonuses, etc.

That's why no claim bonuses exist - if I've had the car long enough with no claims, then I end up giving the insurance company more money than it will cost them to replace it, so they've won.

 

[Bobsp12]

I don't get that bit about the policy increasing exponentially?

you mean for a New for Old policy only? All other car insurance policies that I've seen tend to go down because the value of the car goes down and you start getting into things like no claim bonuses, etc.

That's why no claim bonuses exist - if I've had the car long enough with no claims, then I end up giving the insurance company more money than it will cost them to replace it, so they've won.

You must have a good insurance company....we have four vehicles insured currently and each year three out of the four ( one is a motorcycle), increase their premiums by heaps....consequently, there is some ringing around for better deals. The cheap deals that companies give at the moment to get your initial business have to be recouped somehow....I have never seen a policy get cheaper, regardless of the fact that the vehicle is worth less.
A couple of years ago when our fg2 xr6t policy went from $650 to $1300, I contacted the company..AAMI...and the excuse they used was.."because the car is now worth less" , and because FordOz will be no longer making falcons in a few years.....:headbonk:
I was astounded at their crap and went with another company for around the original price....the next year, that one went up too.....now with another company.
No accidents, full no claim bonus, old....

 

[paulb351]

You must have a good insurance company....we have four vehicles insured currently and each year three out of the four ( one is a motorcycle), increase their premiums by heaps....consequently, there is some ringing around for better deals. The cheap deals that companies give at the moment to get your initial business have to be recouped somehow....I have never seen a policy get cheaper, regardless of the fact that the vehicle is worth less.

A couple of years ago when our fg2 xr6t policy went from $650 to $1300, I contacted the company..AAMI...and the excuse they used was.."because the car is now worth less" , and because FordOz will be no longer making falcons in a few years.....:headbonk:

I was astounded at their crap and went with another company for around the original price....the next year, that one went up too.....now with another company.

No accidents, full no claim bonus, old....

Renewal premium increase aka lazy tax

Same deal with my insurance for cars, boat, house. So I have resigned myself to yearly ring around. An hours work for $650. That is a great hourly rate to work for...

 

[ssb]

This ^^^ is such an alien concept to me. It makes no sense.
I'm trying to reconcile it in terms of agreed value vs market value...

If you had a car worth $10k on the market, but you wanted to insure it for $20k, then it dropped to $5k and you wanted it insured for $20k, I could see the premium increasing... I guess - because the insurance company can recoup less back if they have to sell the totaled car.

But if the car is worth less and you insure it for less, then the premium has to go down, surely?

 

[Bobsp12]

It is driven by the heavy competition in the insurance industry....low rates are offered to get your initial business....maybe at close to cost for the insurer. Then if you blindly stay with the same insurer year after year, they recoup those costs by slugging you higher premiums...
It can be hard to rationalize using logic, as to average vehicle accident costs, residual value after write offs etc. They have some bearing obviously, but there is plenty of good old, raw,rip them off if they aren't looking, involved as well. The practice has been going on for years.
Electricity, gas, phone companies are masters at this as well.
There is no benefit in loyalty to a supplier anymore...

 

[ssb]

Wow, still foreign

I even get loyalty discounts - it's a matrix of number of policies held and time held for - e.g. 10 policies and have been a member for 10 years == more percentage discount than someone with 10 policies for only 5 years...

That's in addition to no claim discounts and such. Nowadays I tend not to bother checking anywhere else because my policies just get cheaper and cheaper all the time.

Anyway, there's often a lot of scope for reduction of charges for customer retention - threaten to go elsewhere and they'll often find some way of reducing the charges for a loyal customer.

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