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Classic Car Insurance |
Agreed Value
Agreed Value is where the insurer agrees the value of the vehicle when your policy is first taken out. In the event of a total loss or theft, this is the amount the insurers will pay. Market Value is what the insurer will pay in the event of a total loss or theft, based on the current value of the same make and model vehicle on the 2nd hand market at that time. An agreed value policy is particularly useful as values of classic cars can fluctuate depending on how fashionable it is at a particular time. Values can also increase when work is done to restore it or improve its condition. Agreed values are usually only valid for the period you are insured for, so care should be taken to ensure your agreed value remains adequate, particularly if the model car is becoming more popular. Some insurers issue an agreed valuation certificate, with the agreed value on it. However, the vehicles value is not deemed to be agreed until the document has been issued. The agreed value does not date back to the inception of the policy and if a loss occurs before the value is agreed, then settlement will be on a market basis. Insurance companies have different methods to agree the value of your vehicle. Some will require you to produce an independent engineers report each year. This may be a false economy, as any cost saved on your insurance premium may be offset by the cost of this report and your time taken to get it. Another method is to provide photographs of your car. As well as 35mm prints, most insurers now accept good quality digital images that show: · All sides of the vehicle, one should show the number plate. · The interior of the vehicle. · The engine bay.
In addition to the photographs, some insurers may require purchase invoices or receipts to support any work carried out on the vehicle. If you carry out work to restore or improve the vehicle, you should keep the agreed value under review and negotiate an increase with the insurer where appropriate. You should also check to see if cover is included or available for spare pars waiting to be fitted to your vehicle. As an enthusiast in this type of vehicle, when discussing your vehicle’s agreed value insurance, it’s important to speak to a specialist broker who understands your passion. There are a number of classic car insurance brokers who have links with car clubs and can discuss your case with the insurers directly.
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