Agreed Value Insurance
Discussion
It might be a dumb question, but would I be shooting myself in the foot by going for an agreed value policy when the Griff (hopefully) is appreciating? For example, hypothetical agreed value £15k, wishful thinking value in 6 months £20k, write it off and only get paid 15k 'cos that's what I agreed? Any comments appreciated.
I don't think it's quite as simple as the OP describes as normal policy is "market value up to the policy limit" and the policy limit is how much you've declared when taking the policy out.
eg take out insurance, tell them your car is worth £15k, and don't have an agreed value, then you are insured for market value up to a limit of £15k. In a depreciating market, you end up with an offer below what you want and have to possibly go through the hassle of arguing the true market value. However if your car is an appreciating asset, then I don't think they have any obligation to pay out the more than £15k.
So.. Don't protect it, crash, and you will get "up to £15k"
Protect it, crash, and you get £15k
The only way of insuring for the higher value is declaring it when taking out the policy, and/or getting an agreed value at the higher amount.
Interesting someone mentions free re-assessments as my mk2S is protected at 45k which was probably around 5k higher than a standard car, so I may need to revisit this!
I should add... The above advice came from an insurance company so may or may not be standard practice as I guess companies may differ.
eg take out insurance, tell them your car is worth £15k, and don't have an agreed value, then you are insured for market value up to a limit of £15k. In a depreciating market, you end up with an offer below what you want and have to possibly go through the hassle of arguing the true market value. However if your car is an appreciating asset, then I don't think they have any obligation to pay out the more than £15k.
So.. Don't protect it, crash, and you will get "up to £15k"
Protect it, crash, and you get £15k
The only way of insuring for the higher value is declaring it when taking out the policy, and/or getting an agreed value at the higher amount.
Interesting someone mentions free re-assessments as my mk2S is protected at 45k which was probably around 5k higher than a standard car, so I may need to revisit this!
I should add... The above advice came from an insurance company so may or may not be standard practice as I guess companies may differ.
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