insurance

[Dustydog]

There is the legal principle of utmost good faith applicable to all policies.
Failure to disclose information honestly will result in cancellation of the policy from the date of inception and no payout.
Thus deliberately stating a lower value to achieve a lower premium will end in tears.

 

[Buckman]

Some policies, like classic cars, are agreed valuation - but most policies for cars and caravans are market valuation - the proposal valuation is used to determine the premium but also act as a top limit in the case of under-valuing.

If a caravan is worth £15,000 then insuring it for £20,00 will only get £15,000 if it's written off or stolen. Conversely if the proposal stated £10,000 to get the premium down then the insurer would only pay out £10,000 rather than the value.

Can I suggest that you correct your post #15? 👍 😀

 

[RogerL]

Can I suggest that you correct your post #15? 👍 😀

Thanks for pointing out my typo

 

[Buckman]

Thanks for pointing out my typo

I should also be apologising as forgot to add a smily at end of my earlier post when I pointed it the error. However here is a catch up. 😆😆