Quote:
Originally Posted by 73 4V XB
Can you show me where in any insurance PDS it states a fair market value will over ride a agreed value?
Despite what the car is worth in real money the insurance will only ever pay out on the agreed value policy.
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I think you are misunderstanding what I have said.
hypothetically lets say you have a car insured for $10k
The assessed value is (fair and reasonable) market value is $7k
The repairs are about $6.5 K. as clearly it is uneconomical to repair,
The car will still be a total loss...you will be paid out the $10k agreed value, but in a recovery situation eg the insurer has to recover from a third party, legally they can only recover the $7k Fair and reasonable market value. regardless of what was paid to the insured customer.
The same is true even if you are uninsured and you do your own recovery, you can only recover the fair and reasonable market value. (not what you think it is valued at)