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Why can't I insure my car for what I consider a reasonable replacement cost, when I am prepared to pay a higher premium for the privledge, each year my value goes down even with agreed value and if I need to replace it my insurance will not cover an equivalent type of vehicle. Hence at the end of the day i will have to add to the cost of purchasing replacement car, having paid insurance on my car for years. Doesn't seem right or fair, I have always serviced and kept my car in good condition, I get depreciation but why no recognition for careful owners?

We asked AA Insurance to provide an answer to your question.

Determining an accurate value for a car is something we’ve strived to improve over the years.

There can be a great deal of variation in what a customer pays for the car, what the customer thinks the car is worth, what the car is actually worth and what a customer later believes is a fair payment if their car is written off.

We use a trusted industry vehicle pricing authority for second-hand vehicles, to determine vehicle values and regularly update the values each year. As there can be room to move, customers are always welcome to discuss this further.

In the unfortunate event a car is written off, if the customer is still concerned the value of their car is higher than the agreed value, we assess the vehicle and work with the customer to reach a fair payment.

This should put you at ease that you know the minimum amount you’d receive. Moreover, if it’s later established the value of the vehicle is higher than it is insured for, this can be taken into account.