Agreed Value
Agreed Value
Author
Discussion

poorpeet

Original Poster:

837 posts

276 months

Tuesday 4th November 2008
quotequote all
It's coming up to 2 years since my Chim was given an agreed insurance value of £9000.
Now, I know that there are some dirt cheap private cars out there at the moment. But, if mine went up in smoke I take it that the agreed value should reflect what it would cost to replace the car at a dealer?
If so what should I be looking for bearing in mind it's for the next 2 years?

V8 GRF

7,299 posts

241 months

Tuesday 4th November 2008
quotequote all
It's all down to the individual car with the obvious things being taken into consideration. I don't know your car but who's to say it wouldn't be worth £9k to the right buyer in the right market, or even this market?
I've been calling round insurers the last few days and I was finding it difficult to find an insurer who'd give me an agreed value, with the most common excuse being that the underwriters where nervous in the current market, that made two of us. wink

Classicline came up trumps for me and I have business use as well.

Edited by V8 GRF on Tuesday 4th November 11:37

RIP_puffsorted2

2,442 posts

256 months

Tuesday 4th November 2008
quotequote all
V8 GRF said:
It's all down to the individual car with the obvious things being taken into consideration. I don't know your car but who's to say it wouldn't be worth £9k to the right buyer in the right market, or even this market?
I've been calling round insurers the last few days and I was finding it difficult to find an insurer who'd give me an agreed value, with the most common excuse being that the underwriters where nervous in the current market, that made two of us. wink

Classicline came up trumps for me and I have business use as well.

Edited by V8 GRF on Tuesday 4th November 11:37
Hagerty has no qualms about an agreed value of 19k for my 18000 mile 99T Griff once they had seen a selection of photos.


900T-R

20,406 posts

288 months

Tuesday 4th November 2008
quotequote all
Over here, the valuation report on an agreed value policy concerning a classic/specialist car usually is valid for 36 months.

supadik

96 posts

220 months

Tuesday 4th November 2008
quotequote all
If I could get a 19k agreed value for my Chim it *would* go up in smoke believe me biggrin

kenny Chim 4

1,604 posts

289 months

Tuesday 4th November 2008
quotequote all
Supa- too right! My M reg was written off by a 3rd party fault in September and the insurance company 'engineer' suggested a value of £5'500. I of course contested that and sent them copies of ads of similar aged cars being advertised for more than double that.

Expecting them to come back and at least meet in the middle, I received a letter from them last week saying they will not shift from their original estimation. It transpires their 'engineer' estimated the value of my car via photographs without seeing the car and could not even pronounce Chimaera.

Please do not be (like I was) mugged into taking out a policy by a 3rd party broker starting with 'a'- as it turned out to be not such a good 'plan'...rolleyes

Barkychoc

7,848 posts

235 months

Wednesday 5th November 2008
quotequote all
I don't understand this - surely whatever your agreed value is thats what you are paying your premium against - if they suddenly say the car isn't worth the agreed value then they have been ripping you off for the additional premium. My view is insurance companies are just a bunch of robbing censored

V8s ONLY

266 posts

229 months

Wednesday 5th November 2008
quotequote all
Be very aware that overvaluing your car on an agreed value policy is a very foolish thing to do. Insurance companys will only pay what a vehicle is worth or less,nomatter what your agreed value is.Also if your agreed value is way out they may regard your policy as fraudulent with dire consequences

V8NRG

854 posts

274 months

Wednesday 5th November 2008
quotequote all
V8s ONLY said:
Be very aware that overvaluing your car on an agreed value policy is a very foolish thing to do. Insurance companys will only pay what a vehicle is worth or less,nomatter what your agreed value is.Also if your agreed value is way out they may regard your policy as fraudulent with dire consequences
If you have an agreed value that is what the Ins co. has to pay, otherwise the value was never "agreed" in the first place.

poorpeet

Original Poster:

837 posts

276 months

Wednesday 5th November 2008
quotequote all
Yes, 'agreed value' is just that. It's not the same as 'market value' which is what you put on a normal insurance.
If you have an agreed value policy then, subject to deduction of the agreed excess, that is what you will get in the event of a write off.
Having had a think about it I am going to try to keep the value at £9k on the basis that you don't see many at 'proper' dealers for less than that.

MJW1977

146 posts

233 months

Wednesday 5th November 2008
quotequote all
V8NRG said:
V8s ONLY said:
Be very aware that overvaluing your car on an agreed value policy is a very foolish thing to do. Insurance companys will only pay what a vehicle is worth or less,nomatter what your agreed value is.Also if your agreed value is way out they may regard your policy as fraudulent with dire consequences
If you have an agreed value that is what the Ins co. has to pay, otherwise the value was never "agreed" in the first place.
Couldnt put it better myself.

I had to send in photos to "agree" the value within 14 days before the policy was confirmed. Assume all these policies are the same. Therefore they have entered a contract and would be in breach of it by contesting it.

RIP_puffsorted2

2,442 posts

256 months

Wednesday 5th November 2008
quotequote all
Never had to make a claim (thank god) so far so I can't comment on Hagerty's claims service but I am extremely pleased with the service I have received so far, it was obvious from the phone calls I had with them they knew exactly what they were talking about. The value put on my car was agreed between us as its virtually irreplaceable at that mileage and condition, maybe Fernhurst's could come up with an equivilent car but that would be about it.


Uncle Fester

3,114 posts

239 months

Wednesday 5th November 2008
quotequote all
The problem I find is that the insurance companies don't want to increase the agreed value to reflect expensive modifications.

If I had to replace it then I could get another Griff, but no way would it pay to have work done to bring the replacement to the specification of mmy current car.

Trying to find a comparable car for sale to illustrate the value has proven fruitless.

V8s ONLY

266 posts

229 months

Wednesday 5th November 2008
quotequote all
Agreed value is just a term used to describe these policies. Ive run vehicles with agreed value since 1984. Read the small print. Many classic car mags over the years have run articles about classic insurance, they all warn about overvaluing your car because you wont get paid out. Insurance companies take your or a specialists valuation as being honest,they do not check this until you claim.There in no contract to pay an inacurate price.

chrispitman

742 posts

285 months

Wednesday 5th November 2008
quotequote all
It's also worth having the option to buy back as salvage, with an agreed value that way if you have loads of expensive mods you can get the remains back and take the rest in cash. Buy another car and transfer the bits.

jodypress

2,121 posts

305 months

Wednesday 5th November 2008
quotequote all
V8s ONLY said:
Agreed value is just a term used to describe these policies. Ive run vehicles with agreed value since 1984. Read the small print. Many classic car mags over the years have run articles about classic insurance, they all warn about overvaluing your car because you wont get paid out. Insurance companies take your or a specialists valuation as being honest,they do not check this until you claim.There in no contract to pay an inacurate price.
So you've agreed a value...sent in photos (paid extra premium for agree value) and that was the current market value at the time. Now we're in a economic quagmire and the chance of being able to sell said vehicle at agreed value is laughable. Surely the agreed value if not overinflated but current market value at time of insurance should be paid out if a write off happens, no?

V8s ONLY

266 posts

229 months

Wednesday 5th November 2008
quotequote all
No. Also dont undervalue your car either! If your cars worth 20k and you insure it for 15k in event of accident they may only pay for 3/4 of cost of repairs. Im not talking here of a few hundred quid either side of agreed value, just dont drastically over or under value it.

900T-R

20,406 posts

288 months

Wednesday 5th November 2008
quotequote all
Erm no, because the agreed value is not what you could sell it for, it's what is needed to put you in the exact same place as before the loss. I doubt the engine builder who did my RV8 would take less for doing another just because the used car market is in a slump.

REM2112

418 posts

222 months

Saturday 8th November 2008
quotequote all
Father in law did £10k worth of damage to my 1998 Chim by running into the back of it. Insurer (Allianz Cornhill via Haggerty) came up with £8k valuation and wanted to write it off. Pointed them towards Pistonheads classifieds for more sensible prices and we agreed a much higher value and car now being repaired!. Service from Haggerty excellent.

V8 GRF

7,299 posts

241 months

Saturday 8th November 2008
quotequote all
RIP_puffsorted2 said:
V8 GRF said:
Classicline came up trumps for me and I have business use as well.
Hagerty has no qualms about an agreed value of 19k for my 18000 mile 99T Griff once they had seen a selection of photos.
I'm limited to the companies I can use because it's my only car and it has Class 1 insurance for business use so some companies aren't interested and that includes most of the 'classic' insurers, Hagerty included.

Agreed value as explained to me recently is exactly that. You agree the value, say £15k if they write it off they pay you the agreed value of £15k. No offers no negotiations... £15k.