Author: Paul Cowland | Read Time: 4 minutes |
Adding an ‘agreed value’ to your classic insurance policy is a smart move, reckons TV presenter and Peter James Insurance ambassador, Paul Cowland. He also adds a few of his own ‘best buy’ tips into the bargain…
Us classic car owners are a funny bunch, aren’t we? I’d wager that every time you pull up in or on your beloved classic to the petrol pumps, you’re breezing straight past the E10 Premium, and nestling snugly next to the E5 Super, particularly if you’re running something a little older. All of us know by now that the ‘saving’ of the slightly cheaper, higher ethanol fuel just isn’t worth the potential bother. It’s the very definition of false economy…
With that in mind, and noting that almost all enthusiasts understand that you always get what you pay for in these instances, it always amazes me that, come insurance renewal time, many discerning owners are still opting for the cheapest quote that they can find. When what they really should be doing, is looking for the very best value…
How to find the ‘very best value’ classic vehicle insurance
Shopping for classic car or bike insurance is a lot like shopping for fuel. It’s almost always wise to pay just a little more to gain a little extra protection, and have something that’s going to give you a bit more wallop when you really need it to. A great example of this is the notion of an ‘agreed value’ policy. Consider them as the ’99 RON’ of the classic insurance world, if you will. But why do you need one?
Because without some kind of agreed value, it’s probably going to be at the rough, lower average of what the market dictates. And if yours is a particularly nice or low mileage example, or perhaps benefits from a costly restoration or rare extras, then I can categorically guarantee that your ‘budget’ insurer will neither know nor care what that means.
If the market average for your 1984 Metro is £2000, then that’s what’s coming. Never mind that you swept the board at concours last year, or that those accessory alloys were a one-year only option, you’re now lying in a rather uncomfortable insurance bed, very much of your own making.
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It doesn’t have to be like that, of course. At Peter James, we’ve packed a room full of fellow car and bike nerds, who not only know precisely why you’re upset about your damaged, concours Metro, but perhaps, more importantly, what something like that would actually be worth, if you wanted to go out and buy, or build, another to the same standard.
Specifying an agreed value to what you truly believe is the realistic value of your car or bike is an absolute no-brainer for me. Sure, the premium may be a couple of quid higher than the stripped-out, no-frills basic policy that’s the cheapest you can find, but should that awful day arrive, it will feel like chicken feed, and a truly blessed relief at a particularly upsetting time.
Agreed Value – Free, Simple and Easy
So, that’s it then? Just grab the first agreed value policy you can find? Well, you can if you want, but extrapolating my metaphor just a little further, you might also want to drive a couple more yards to the pump with the 104 RON and give our team a quick call. You see, there are agreed value policies, and then there are our Agreed Value Policies. And if you read that last sentence like a Marks and Spencers voiceover, you’ll understand where I’m going with all of this.
Free Agreed Value
For starters, our Agreed Value Option is free. Nothing. No charge. Other specialist insurers charge for adding an agreed value. Without mentioning any names, you can expect to fork out up to £25 for this option. Here? We’d rather just all be on the same page. So, that one’s on us.
Easy and Simple Process
We also trust you, and credit you with a little common sense, so for the majority of vehicles, we’ll agree the value over the phone at the time of purchase. This makes the agreed value instant, valid from the time of policy inception and means you’re driving away correctly covered from the very first mile. Obviously, we do also apply a common-sense check here, so if you’re telling us your stock Morris Minor is worth £90k we might ask for a little extra information!
Also, we don’t ask for any forms or photographs. We understand what a pain that can be. Other specialists may ask for policyholders to complete vehicle condition forms and supply a variety of photographs prior to issuing cover, but this can be really inconvenient, having to get the car out of the garage, wash it, shoot it and then upload the results – especially if your cover is due out of season and your car is stored miles away!
Also, many other insurers will then review these photographs before deciding whether they agree to the value requested. While I can understand that, what happens if you submit your agreed value of £20k and the insurer comes back and says they think it’s only worth £12k? You’ve been on cover (on a market value basis) for a full month, so you’re out of the cancellation period and dramatically under-insured. This is almost back to where we started!
Enhanced Agreed Value as standard
And finally, as if you needed proof that these policies were put together by fellow enthusiasts, we even tailor the final pay-out to truly mirror the current market conditions, as far as we’re aware this is something unique amongst classic vehicle insurance brokers and a feature normally only seen on ridiculously expensive high-net-worth policies!
How does it work?
Well, if your vehicle is involved in a damage claim, part of the process that follows is an independent inspection which also entails a full valuation. If, during that, we determine that the cost to replace the damaged vehicle exceeds the agreed value, we will apply an additional uplift of up to £15,000 or 15%, whichever is lower. So effectively we’ll pay AT LEAST the agreed value, but possibly, up to 15% more if we determine the actual value to be greater than the agreed value figure, putting you right back behind the wheel of a car, or bars of a bike, entirely equivalent to the one you lost.
Final Thoughts
We all like to shop, we all love a bargain but promise me this; next time you’re surfing and calling for classic car or bike insurance, give our team a holler. Stop covering your classic on the cheapest policy and start protecting yourself and your investment with the best value offering. The difference is often much less than you’d think. But the outcome? That might very well make all the difference in the world…
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About Paul Cowland
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Well known in the classic vehicle industry, Paul Cowland is a man with a lifelong passion for all things automotive. He’s presented a variety of classic car shows for the Discovery Channel including ‘Turbo Pickers’, ‘Salvage Hunters: Classic Cars’, ‘Motor Pickers’ and ‘World’s Greatest Cars’, as well as enjoying a career in live presenting, publishing and commentating. As a card-carrying race driver, and championship winner, Paul can pedal almost as well as he can talk. He also currently has 90 classic and interesting cars in an ever-growing collection, and a very understanding wife and daughters… |
