When they don't want to pay that amount out !
Although you pay that premium.
2006-10-05 06:57:40 · 14 answers · asked by lizzy 2 in Cars & Transportation ➔ Insurance & Registration
What one pays and what auto is worth is often not the same.
A new vehicle drops from bwt 3 and 5 thousand dollars in price after you purchase it.
Dealer gets highest possible sell price. most often far higher than replacement cost listed in blue book.
You may pay 25,000 for car but insurance covers only say 21,000
you lose 4,000 if you total it shortly after purchase.
Used vehicles are even worse.
You pay premiums on the insurance company listed value. not what you paid for it.
Of couse they want to know what you paid for it.
Just like if you borrow 10,000 dollars on a 100,000 dollar home -the finance company still will check home most often than not.
They are protecting their pocket not yours.
2006-10-05 07:08:07 · answer #1 · answered by cork 7 · 0⤊ 0⤋
You can get quotes in just a few minutes at - QUOTESTOASSURE.INFO-
RE Why do insurance companys ask how much you paid for your car?
When they don't want to pay that amount out !
Although you pay that premium.
2014-08-26 05:33:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In certain circumstances the car is of what is called "excess value" If the value is over the set amount for a particular insurance grouping it may attract an additional premium.
For example an Audi RS8 will be the same group as a Ferrari but a hugely different value.
2006-10-05 07:03:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I get asked the value of the car, so if I changed my car insurance company next year then the value of the car drops
2006-10-05 09:42:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I believe it because if you have an accident and write it off however much the car is worth they will never pay you more than you paid for it !!
2006-10-05 07:02:28 · answer #5 · answered by stud200_uk 2 · 0⤊ 0⤋
For free insurance quotes
2014-12-13 07:07:25 · answer #6 · answered by ? 1 · 0⤊ 0⤋
Agree with others points, but I think they also want to check you aren't lying about modifications etc. They can gauge this by how much you pay/ value your car at and compare with market value
2006-10-05 07:10:30 · answer #7 · answered by McFly's Star Girl <3 4 · 0⤊ 0⤋
Just for details about your car, like colour and stuff. They normally pay out trade prices. Which are the lowest. Meanies.
2006-10-05 07:10:22 · answer #8 · answered by craigs @ peugeot 3 · 0⤊ 0⤋
Just for records, the actual price of your vehicle doenst matter as far as inurance rates and premiums go.
2006-10-05 07:02:11 · answer #9 · answered by Marie 4 · 0⤊ 0⤋
Usually, the question is how much is the value of your car?
2006-10-05 07:07:43 · answer #10 · answered by Anonymous · 0⤊ 0⤋