Agreed value on a classic policy
Discussion
Hi guys
I've had a quote from an insurer for a car, it's a limited miles policy with an agreed value. One thing I forgot to ask them, is the agreed value then the fixed value you get from any payout?
For example, if you agree a value of £10k and during the policy year the values rise, should the worse happen and you have an accident, would they pay out market value or agreed value?
I guess what I'm saying is, is agreed value a 'minimum' or a fixed value regardless.
Also, what about proof? Would you have to prove the actual value before embarking on a policy? Or could you overstate it.
Lastly, if you have a non fault crash, if the 3rd party refuses to pay agreed value can you get the difference from insurance?
I've had a quote from an insurer for a car, it's a limited miles policy with an agreed value. One thing I forgot to ask them, is the agreed value then the fixed value you get from any payout?
For example, if you agree a value of £10k and during the policy year the values rise, should the worse happen and you have an accident, would they pay out market value or agreed value?
I guess what I'm saying is, is agreed value a 'minimum' or a fixed value regardless.
Also, what about proof? Would you have to prove the actual value before embarking on a policy? Or could you overstate it.
Lastly, if you have a non fault crash, if the 3rd party refuses to pay agreed value can you get the difference from insurance?
Edited by eltax91 on Tuesday 21st February 22:21
bobtail4x4 said:
if you agree £10k thats it,
if it goes up in value you need to re arrange the valuation.
is the agreed value in writing?
Don't know about in writing. I assume so. I'm not sure what proof, if any they will want from me of value. Or if they simply don't care (higher value = higher premium)if it goes up in value you need to re arrange the valuation.
is the agreed value in writing?
You'd need to check with them on exactly how they see it. If you've agreed a value and the market adjusts and the market value drops, most would still expect them to pay out the agreed value, so wouldn't be unreasonable for them to do the same in the other direction.
Most will expect you to provide some evidence that it's in the condition you say it's in when the value is agreed - a selection of clear photos of various angles of the car, and maybe even an independent valuation. It depends on the car and the value - some companies will accept a self-valuation up to a certain amount, for example. My insurers use previous sales information to arrive at an idea of whether my valuation is reasonable, which caused me a problem as cars like mine don't change hands very often. At that point my owners club helped out as they provided a confirmation of the value of the car which the insurance company accepted.
At one point you could get policies where it was just a basic £x for the policy and something like £15 per £1000 value, so you could just pick a value, pay the premium, and pay more for more cover. I haven't seen one like that for some time - most will not allow a value wildly out of sync with market values unless you can prove some reason for the difference. I guess it might be different for higher-value cars, six figures up.
Best to get it confirmed, in writing, which way they see it. Better now (and maybe have to cancel and insure elsewhere) than when it's too late. Says the man who keeps re-insuring with the same company because I keep leaving it too late to shop around.
Most will expect you to provide some evidence that it's in the condition you say it's in when the value is agreed - a selection of clear photos of various angles of the car, and maybe even an independent valuation. It depends on the car and the value - some companies will accept a self-valuation up to a certain amount, for example. My insurers use previous sales information to arrive at an idea of whether my valuation is reasonable, which caused me a problem as cars like mine don't change hands very often. At that point my owners club helped out as they provided a confirmation of the value of the car which the insurance company accepted.
At one point you could get policies where it was just a basic £x for the policy and something like £15 per £1000 value, so you could just pick a value, pay the premium, and pay more for more cover. I haven't seen one like that for some time - most will not allow a value wildly out of sync with market values unless you can prove some reason for the difference. I guess it might be different for higher-value cars, six figures up.
Best to get it confirmed, in writing, which way they see it. Better now (and maybe have to cancel and insure elsewhere) than when it's too late. Says the man who keeps re-insuring with the same company because I keep leaving it too late to shop around.
Edited by droopsnoot on Wednesday 22 February 12:14
I update the values on mine annually at renewal time, and yes, the insurer will payout whatever is the agreed value.
This can put you at risk, especially when the value of the vehicle can rise by 20-30% over the course of the year, but in truth if you tried to keep on top of that you'd never stop looking at the market.
Once a year, look at adverts for similar vehicles, talk to the owners club, talk to insurance company and agree a value.
This can put you at risk, especially when the value of the vehicle can rise by 20-30% over the course of the year, but in truth if you tried to keep on top of that you'd never stop looking at the market.
Once a year, look at adverts for similar vehicles, talk to the owners club, talk to insurance company and agree a value.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff