Agreed Value Insurance

[Keep it stiff]

I have three classics insured through Lancaster, two of these on agreed value.The policy is due for renewal.

I don't understand what process, if any, is applied to agreed values in this rising market and indeed could it be that classic cover is now better suited to non-fixed value cover to allow values to fluctuate with the market?

My concern is compounded by the fact that two of my cars are very rare, I have one car of which perhaps 20+ survive and another for which you would be counting UK examples on one hand. In both cases it is very difficult to find evidence of market transactions simply because there are so few. When I added one of these cars to the policy last year I could not get any clarity from Lancaster as to how they assessed the fixed value, I sent them what evidence I had (links to auction results), I challenged their original assessment which later increased however they could not provide any explanation other than offering the comment "that is what our underwriters came up with".

I would be interested to hear views as to the relative merits of fixed value v non fixed value cover and also if there are any recommendations as to providers who are more responsive on the issue of setting/adjusting fixed values.

[Allan L]

I don't know it this helps you, but we owners and users of pre-war cars often have scarce cars, so "the market" can't be assessed and we were encouraged to think of the potential cost of rebuilding the car after a major accident and use that as the agreed value, rather than the supposed market value.
e.g. one of my cars is one of three built in 1938-9 with the body it has, and for over 30 years it was the only "up and running" one to have changed hands - and as that was a private sale, only Ben Walker and I knew what I'd paid him for it.

ETA Oh and the insurer is KGM via NBJ or Routen Chaplin Insurance

Edited by Allan L on Tuesday 13th October 09:45

[tortop45]

Sounds like you need to find another insurer,as for a non agreed value your taking a big chance on what lancaster insurance will pay you if any think bad happens.

[davepoth]

tortop45 said:

Sounds like you need to find another insurer,as for a non agreed value your taking a big chance on what lancaster insurance will pay you if any think bad happens.

Insurers will often take a valuation from the relevant owners' club.

As is said above though, if you're up for renewal, there's no harm talking to other insurers to see what value they would agree.