Agreed value insurance or similar for non-classics?

[trashbat]

Suppose I were to embark on a great folly, taking some deeply ordinary mid-2000s car, and restoring it to factory fresh or better condition. By no criteria is this car a classic.

By way of illustration, I might spend £4000 on having the engine rebuilt, new suspension, new exhaust, respray etc.

It's obvious folly of course, because the typical, average condition model in the classifieds is worth maybe £2000.

Is there any insurance product to protect this kind of endeavour?

[Ash From Flux]

We'll be providing an agreed value insurance, as an optional extra, on all policies over the coming months. Literally, we're just waiting for it to be signed off by the insurers, and we'll then be offering up on our policies.

Hope we can help in the future. DM me if you'd like any further assistance.

Thanks,

Ash

[trashbat]

Cool, worth bearing in mind. Can you give a very quick overview of how you agree values - independent valuation or what? (presuming you have something similar in a niche already)

[TwigtheWonderkid]

trashbat said:

Suppose I were to embark on a great folly, taking some deeply ordinary mid-2000s car, and restoring it to factory fresh or better condition. By no criteria is this car a classic.

By way of illustration, I might spend £4000 on having the engine rebuilt, new suspension, new exhaust, respray etc.

It's obvious folly of course, because the typical, average condition model in the classifieds is worth maybe £2000.

Is there any insurance product to protect this kind of endeavour?

No. If you spend £4000 restoring a car that's worth £2000 in perfect condition, you have a £2000 car. £2000 is your loss if it get's written off and £2000 is what you'll get. The fact that you chose to chuck an additional £2000 down the drain is not insurable.

Agreed value policies don't pay you more than the car is worth, they just agree the worth at the outset so there is no hassle valuing the car in post claim circumstances.

[trashbat]

TwigtheWonderkid said:

No. If you spend £4000 restoring a car that's worth £2000 in perfect condition, you have a £2000 car. £2000 is your loss if it get's written off and £2000 is what you'll get. The fact that you chose to chuck an additional £2000 down the drain is not insurable.

Only because it revolves around average market value. I could argue that the purpose of insurance is to provide a remedy that restores you to the position you were in, and the position you were in was owning an example of average value plus £4000 of recent work.

Obviously with most insurance contracts, you would be on a hiding to nothing, hence the question