Agreed Valuation Letter
Everyone resents having to spend money on insurance but unfortunately it’s a necessary element of motoring. With the many thousands of classic car insurance policies available to drivers, don’t be fooled into thinking all are the same. This is especially important to bear in mind when insuring a classic car.
One of the most valuable benefits that a classic car contract should offer, is the option of specifying an ‘agreed value’. An ‘agreed value’ is a figure, approved by both client and insurance company, of a vehicle’s true value. For their owners, classic cars are a passion with many spending huge amounts of money on their vehicles. This often results in owners ploughing far more cash into a vehicle than it would ever be worth on the open market. This mismatch of money spent versus actual market value is where problems can arise.
Many owners will not have specified an ‘agreed value’ with their insurance company, others simply total all monies spent on the vehicle and assume this is what they will receive in the case of a claim. Sadly, both instances will almost certainly lead to disappointment – Insurance companies only pay up to the market value of the vehicle at the time of any incident.
How do you specify an “agreed value” ?
Specifying an ‘agreed value’ with your insurance company is simple. You will need to provide a selection of images of your vehicle taken from various angles, together with a written valuation. A written valuation can be obtained either through a specialist club such as the Nova Sport Register, or by yourself (after all nobody knows your car better than you do) as companies such as Classic Line give their drivers the option to produce their own vehicle valuation.
How will you know if a value has been agreed ?
You should have received confirmation from your insurance company/broker stating the exact ‘agreed value’ for your vehicle. This could be in the form of a letter, certificate or schedule. Some companies guarantee the valuation of the vehicle for up to 2 years but this can change between companies.
Nova Sport Registers top tips
It pays to make sure that the value of your vehicle is agreed at all times, including before and during a restoration.
Treat the issue of insurance seriously and as much a part of classic car ownership as selecting the right oil or tyres for your vehicle.
Remember; your insurance broker should be there to help. Keep your broker informed of any work carried out on your vehicle that may affect its value.
With any luck you’ll never have to worry about claiming your ‘agreed value’ and your car will give you many years of happy motoring..this is all just in case the worst happens.
We hope you have found this guide useful and we can assist you with our valuation service in the future.
To pay for your valuation service please click HERE
