It was only on the 9th June that we wrote about the huge increase in value of some classic cars so it is interesting to hear now that this movement in values may have a significant bearing on classic car owner’s insurance. The Historic Automobile Group International (HAGI) researches the investment value of many classic cars and are aware of the significant increase in values seen in recent years.
Insuring a Ferrari 250 GTO worth millions is likely to cost more to insure than a Morris Minor
So, how does this have anything to do with classic car insurance?
Well, one of the factors that impacts on the price you pay for such insurance is the value of the vehicle being insured. Obviously, it is going to cost more to insure a vintage car valued at £250,000 than one worth £10,000.
However, the problem is that a lot of policyholders insured their classic cars many years ago and they may well find that the value has risen significantly. So, if you insured your vehicle 20 years ago for £20,000 and it is now worth £60,000 what would happen in the event of the classic car being written off?
Unfortunately, this could be a problem for you as the insurance company are unlikely to pay out £60,000 if it was only insured for £20,000. As a result, you could be faced with a substantial shortfall meaning that you may not be able to go out their and buy the same make and model to replace the one that has been written off.
Therefore, if you feel that you are possibly going to be in the above position, you may wish to get a professional valuation of your vehicle. If the value has increased then you may wish to think about getting a new classic car insurance quote based on its increased value.
At the same time as doing that you may wish to shop around to see if you can get a cheaper classic car insurance quote from a different provider than whom you are with at the present time. Who knows, you may be pleasantly surprised to find that you may be able to get a better deal elsewhere.
