It is worthwhile to consider the true value of your beloved motor before you start looking for classic car insurance. Specialist car insurance policies often have a cost that is determined by the amount insured or declared value. Your opinion on the car’s value and the company insuring it may be different. How can you determine the value of your classic car for insurance purposes.
If you don’t approach this potential problem at the beginning, the day you take out the policy is when you can claim for the car being written off. You may not receive the full market value of your classic if that happens. This problem is magnified if your car is vintage, rare or a collectors item.
If you have a standard policy of car insurance that covers replacement like-for-like vehicles, the vehicle’s market value will be used to determine the vehicle’s worth. This is typically taken from Glasses guide on motor vehicle prices. A write-off is likely to cost you the current market value for your vehicle, which is an annual depreciating rate that applies to all vehicles and cars.
This is fine for most claims. However, the classic car market does not have a reliable guide. Problems can arise if a classic vehicle has been in an accident that results in total loss.
It is extremely unlikely that the owner will know the true value of their classic vehicle at any time other than when they bought it. The same applies to the Insurer, who must determine a price for the risk. Insurers must also decide the cost of repairs when pricing their classic car insurance policy. The cost of repairs might require specialist tools or replacement parts. It is important that a potential buyer of a classic insurance policy understands the levels of coverage available and whether they will oblige you to take your vehicle to an approved repairer in the case of a damage claim.
Specialist car insurance companies that insure classic and collector vehicles have developed a policy option called the ‘Agreed Value’. This covers potential problems such as these. Agreed Valuation coverage guarantees that the underwriting company will pay all claims up to the agreed value. Most cases, the agreed car value is guaranteed for a set period. Your insurance company will notify you if the motor’s value changes. They will arrange for a valuation. While many specialist car insurance companies offer valuation services as an optional coverage, some charge a fee and include it in their basic policies. Most classic car insurance companies require a set photos and any accompanying purchase or restoration documentation. The process of valuation is quite simple.
You should consider buying a policy with agreed valuations if your classic car is highly valuable or difficultly valued. This will help you avoid any future issues with the insurance company. An Agreed Valuations Certificate, which is often issued by the insurance company and valid for only a few times, is usually issued. To take advantage of the many deals available on the Internet from specialist companies, such as those offering classic car insurance, make sure you verify that your certificate is accepted by the new insurer. Also, confirm that the new company provides an agreed valuation service.
