How do you agree the value of these classic cars?
There is a bit of difference between placing a value on a modern car and a classic car. In the case of a modern car, you would insure it for its market value that is almost certainly going to reduce over time. However, in the case of a classic car this is often not the case as they tend to appreciate in value. Also, the cost of buying genuine replacement parts, should you be involved in an accident, could be considerable. This is why it is usually better to insure your classic car for its “agreed value”.
To explain “agreed value” in a little more detail we thought that we would run a series of questions and answers. Questions about “agreed value” in respect of classic car insurance often crop up so we hope that you find the following session useful.
How do I calculate the value of my classic car?
There are a number of ways to do this such as: –
• Guide prices are available on the Internet.
• Guide prices are detailed in classic car magazines.
• You can obtain a valuation from a specialist in classic cars.
• Check the price of the same sort of classic car in classified advertisements.
How do I agree what its value is with my classic car insurer?
This will vary slightly between classic car insurance companies but could include you completing a valuation form that could be accompanied by a number of photographs of different parts of the car. The insurer will then make a decision as to its value.
Is the value placed on the classic car guaranteed should you make a claim?
In most situations the answer is “yes”. However, if your classic car were in a total loss situation or possibly a total loss then the insurance company may wish to inspect the car to check that the condition of the car when the accident took place was in line with its agreed valuation. Should the condition of the car have reduced then the insurance company may only agree to pay the market value.
Can I change the value of my classic car once the insurance cover has commenced?
The norm is that it is reviewed bi-annually but when you consider that over the last 30 years the value of collectable classic cars has gone up on a compound basis by an average of 12% per annum it is perhaps better to review its value on an annual basis.
Hopefully, you have found the above useful.
