Agreed valuations

[Ringmaster]

Silly question folks, but am I correct in saying that the higher the agreed value of a vehicle, the higher the insurance premium is likely to be?

[Flying Frank]

I always thought that to be the case.

[Hanuman]

Two ends of a long bit of string.

The higher the agreed value, the higher the risk assumed by the insurer, and so a higher premium.
However, I've not noticed it to increase that greatly, compared with other factors such as address, level of use, method of storage.

[darreno'd']

One thing worth noting with agreed value insurance. The agreed value, is only relevant if you dap your own vehicle. If a third party damages it, and the claim is against them, your agreed value means nothing, as you have no contract on valuation with someone else's insurance company.

[sinbin5t]

So what is the criteria for putting a value on an old car i wonder, some have no recent sales so no guide so to speak, so how do we value them reasonably ?

I am going to run and hide in the wardrobe now before i get bombarded

[Coxy]

look at 4 Star Classics prices and then divide by 7 and time by 2 and you get a realistic figure!

[Coxy]

Originally Posted by darreno'd'

One thing worth noting with agreed value insurance. The agreed value, is only relevant if you dap your own vehicle. If a third party damages it, and the claim is against them, your agreed value means nothing, as you have no contract on valuation with someone else's insurance company.

Not sure that's how it works as your car is insured by your insurer and they have to act on you behalf whether it's fault or non fault.
I had to do a retrospective agreed valuation on a friends Audi Coupe a few years ago who'd been whacked in the rear (so non fault) and they paid out based on the agreed value I had given less scrap value as he kept the car to break for parts.

[Coxy]

The company I use for my cars, charge a flat rate of £20 for each car with an agreed valuation on them. There is no further increase in the premium. Other than that, they will pay out based on 'market value'. This is where it can be a bit of a minefield as if there are similar cars for sale by dealers such as 4 Star, they you could end up better off. Last time I dealt with a classic write off pay out, they requested 3 adverts of similar priced vehicles and paid out the average cost. This was a 1966 VW Beetle.
The bigger issue with insurance claims on classic cars is who gets the salvage rights. Given that as many parts are NLA, even a small bump will class the vehicle as a write off, and in a lot of cases, it's actually better to get paid out a lesser amount and keep the vehicle.

[sinbin5t]

Originally Posted by Coxy

look at 4 Star Classics prices and then divide by 7 and time by 2 and you get a realistic figure!

DOH i will end up owing myself money

[Hanuman]

Insurance. My favourite soap box subject!

Yes, the insurance on your car means you are protected. If you have an agreed value insurance policy, then it's best if you claim through your own insurer, and be involved in everything; estimates, choice of repairer, etc. If you leave it in someone else's hands, you will more than likely have a hard time. Claims handlers do not work in your best interests unless they align with their best interests. Make sure that they are conveying your needs, not expediting their claim closure rate or increasing their billing.

Salvage.
Many policies that I've had in recent years have been clear in that the salvage is mine. But! That does not mean that they'll let you have it once it's in their hands. If it's worth having agreed value, then it's worth thinking seriously about what you'll do if the worst happens.

Insurance is based on law, not morals. What you might consider morally reprehensible may actually be acceptable in law. It's not nice, it's reality. If you want to avoid a stroke, make sure you have a plan.