31/10/2023
What is Agreed Value For Car Insurance?
When it comes to insuring a classic car or other special vehicle, it’s essential that you have the right protection in place. For this reason, some owners opt for Agreed Value Car Insurance.
But what is Agreed Value, and is it the right fit for the vehicles in your garage? Read on to find out if it could be the solution for you.
What is Agreed Value Car Insurance?
Here is an Agreed Value Insurance definition: It is a type of cover that means you and your insurer pre-agree the value to be paid to you if your car is written off or stolen.
By agreeing this amount in advance, you will have a greater degree of certainty around the amount of a claim payment. This will better protect what is likely to be a valuable asset, as well as your pride and joy!
This is different to regular insurance. With a standard Car Insurance policy, your car’s market value will determine the size of your payout. This will be calculated at the time of your claim. However, this market value may not take into consideration the care you have put into maintaining or restoring the car.
When it comes to Agreed Value vs Market Value Insurance, the former is more likely to pay you compensation that fully reflects the true value of your vehicle.
Who is Agreed Value Insurance for?
If you own a particularly special classic car, or a heritage or vintage vehicle, you may want to look into Agreed Value Car Insurance.
This is because, when it comes to insuring a vehicle that is a little out of the ordinary, standard Car Insurance may not cut it. And if your precious vehicle gets written off or stolen, you may find that your insurer will only pay out what they consider to be its market value.
How does Agreed Car Value Insurance work?
In addition to providing the usual details for a Car Insurance quote, a prospective Agreed Value insurer will want more in-depth information and documentation about your vehicle.
This could include some of the following:
- A vehicle condition report
- Current photographs
- Restoration receipts
- Old MOT history
- Provenance documents
- Owners club classic car valuation
- Recent sale history of that vehicle type
In most cases, the first two are all that are needed. But when the value of the vehicle is enhanced, perhaps by a previous famous owner, proving the provenance could play a big part in agreeing the true value.
The insurer will then use this information to validate the requested agreed value. Typically, they will issue the Agreed Value Insurance policy at this figure, reassuring you that your beloved asset is protected.
How long does a classic car valuation last?
There is not a set time limit for how long your classic car valuation will last. However, your classic car can gain value over time, so it’s a good idea to have it revalued regularly.
Checking your classic car valuation about once a year will ensure that you can adjust your Agreed Value Insurance to the right level.
Does Agreed Value Car Insurance cost more?
Provided you give your insurer the appropriate information to back-up your requested value, there tends to be no additional cost for Agreed Value Classic Car Insurance.
Do all cars qualify for Agreed Value Insurance?
No, not all cars will qualify. However, over the years insurance companies have extended the list of vehicles that they will consider. This means that classic cars are no longer the only vehicles that can get an Agreed Value Insurance policy.
The list below are just some of the vehicles that may now be considered:
- Modern/future classics
- Limited production vehicles (some manufacturers produce runs of just a few hundred)
- Those with a notable vehicle provenance
- Vehicles purchased for investment only
- Heritage or vintage vehicles, such as steam cars or vintage tractors
How to get Agreed Car Value Insurance?
If you’re looking for Agreed Value Car Insurance, you can get in touch with our team.
Our knowledgeable brokers will get to know you and your vehicle and find a policy that best suits your requirements.
To get the process started, talk to our Classic Car team today.
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