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Message: <blockquote data-quote="astroboy" data-source="post: 391291" data-attributes="member: 4527">My finance company never ask me for a copy of the insurance policy, perhaps the very first year but after that they never contacted me. When it comes to claim, the insurer will try their best to slap u with the under insured clause so they reimburse u less. So in order to avoid this, I always insure my cars at a price slightly below the advertised price in the classified column because that will be the fair and actual transaction price.When I asked for RM150k, I am just trying to push my luck because that's the price a dealer would take my car and sell it at RM16x to make a profit. The higher of the transaction price is often used by insurer as a market value guide for obvious reason. Anyway, the 10k difference in value doesn't make much difference in risk premium.The term "under insured" means differently to a bank. They are only interested in securing their outstanding loan so if your still owe your financier RM10k on your E90, the financier will make sure u insure your E90 no less than RM10k but are u really going to insure your E90 at RM10k? When an accident happened and require RM30k to fix, the insurer will tell u you are under insure by (160-10)/160=93.75% so they will only reimburse u with RM30k - 93.75%= RM1,875 on the RM30k claim. Now, that's the real issue with under insured. And when u lost the car, instead of claiming RM160k, the insurer will only reimburse u with RM160k-93.75%=RM10k!!And I'm certainly sure u won't be driving around a quarter million Ringgit car with 3rd party insurance because once the car stolen, U don't get to claim a single sen.. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite9" alt=":eek:" title="Eek!    :eek:" loading="lazy" data-shortname=":eek:" /></blockquote>

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