Classic cars forum & vehicle restoration.
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rcx822
Joined: 31 Dec 2010 Posts: 112
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Posted: Thu Dec 04, 2014 8:45 am Post subject: About agreed value insurance |
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I've spent a lot of hours restoring a car, well more of an overhaul really, but nonetheless, many hours... The car is worthless because it's not a classic yet, and probably never will be, but it's the car I wanted, and I wanted one in good nick so I put in the hours and money.
I'd heard of agreed value insurance so I've contacted my insurance company to agree a value. But they have said that agreed value insurance is where they value the car and quote that figure. Google says that how other companies work as well. That's not quite what I'm after. So is there such thing as "agreed payout" insurance? Ie I state what it's worth to me and that the figure the company would agree to pay in a total loss situation? |
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ukdave2002
Joined: 23 Nov 2007 Posts: 4231 Location: South Cheshire
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Posted: Thu Dec 04, 2014 9:58 am Post subject: |
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Its an odd one as you are effectively asking to insure something for more than its worth (or market value), if insurance companies offered this it would just create a opportunity for fraud, one could purchase a car at normal market rate, insure it for more and then right it off, the payout would be a net profit
The only time I have seen insurance like this, is when we put household goods in storage, we purchased insurance through the operator (Pickfords) rather than list all the items you just specified the total value and paid the premium, simply £100K of insurance cost twice as much as £50k. Unfortunately we did have to claim as their warehouse in Chester burned to the ground with just about everything we owned in it ! including all the smaller parts from my MGA!!
It is a different scenario as we were not in control of the stuff in storage.
Dave |
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rcx822
Joined: 31 Dec 2010 Posts: 112
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Posted: Thu Dec 04, 2014 10:03 am Post subject: |
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ukdave2002 wrote: | Its an odd one as you are effectively asking to insure something for more than its worth (or market value), if insurance companies offered this it would just create a opportunity for fraud, |
Yeah I thought it would be something like that. Was worth asking though. |
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Fatbloke

Joined: 26 Jun 2014 Posts: 86 Location: Royal Wootton Bassett
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Posted: Thu Dec 04, 2014 12:38 pm Post subject: |
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Most classic car insurers do just that though. Agree the value they would pay in the event of write off/total loss. It usually involves sending them photos and a list of work done.
What car are we talking about? _________________ Mike,
A Fatbloke in a Herald. |
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colwyn500
Joined: 21 Oct 2012 Posts: 1745 Location: Nairn, Scotland
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Posted: Thu Dec 04, 2014 1:51 pm Post subject: |
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The idea of insurance is that you should be able to replace a damaged or stolen item with one of equal value which puts you in no worse a situation than you were in before the incident. On this basis, the appropriate valuer will know or be able to find out what the current market value of your car is likely to be. This will take into account its rarity in the condition you have created.
The problem seems to be that you might find it impossible to easily obtain a similar vehicle.
Once an insurer has accepted the valuation the situation would differ from most claims in that they would refer to the valuation rather than current market values in deciding the sum to pay. I expect that this sort of insurance carries with it additional costs for regular independent valuations and a need to have some proof that the vehicle has been continuously maintained to a high standard.
Is there an owner's club for the car as they may have a simplified system to obtain valuations through a preferred insurer. |
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emmerson
Joined: 30 Sep 2008 Posts: 1268 Location: South East Wales
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Posted: Thu Dec 04, 2014 6:13 pm Post subject: |
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A lot will depend on the vehicle's rarity, too.
My caravan is one of a kind, and therefore cannot be valued on the open market. The insurance co agreed to a value on being presented with proof or its uniqueness, and photographs to prove its condition. |
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colwyn500
Joined: 21 Oct 2012 Posts: 1745 Location: Nairn, Scotland
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colwyn500
Joined: 21 Oct 2012 Posts: 1745 Location: Nairn, Scotland
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