Insuring your car against the calamities of life can be a mine-field. Today we will look at agreed value car insurance, which might well be the answer for those for those of you who value their car more than market value dictates.
Unlike market value insurance, which simply covers your car for the price it would have been worth in accordance with other cars of a similar make and model at the time just before the incident which led to your claim, agreed value insurance can be taken out for any amount agreed prior to a claim. This can be for more or for less than the actual market value of your car.
Say, for example, you own a classic BMW which you have spent many hours restoring over a ten-year period. It is one of your most treasured possessions, one you would never consider consensually parting with. You decide that should you lose the car due to an accident, fire or theft, this loss would be worth far more to you than the car might be actually be worth on the open market. You decide to insure the car for £50,000. Your premiums are higher than they would have been had you only insured the car for the actual market value of £15,000, but you live safe in the knowledge that in the event the car is stolen or written off, then you will receive the full £50,000 in compensation.
Conversely, should you wish to insure your car for less than the market value – for example, you inherit an expensive classic car and you simply cannot afford to insure it for market value – you can insure it for less than it’s worth and pay reduced premiums.
Situations Suiting Agreed Value Car Insurance
Insuring Vintage and antique cars where the market value estimate is much too low.
Insuring cars under finance – when you still owe money on your car, taking an agreed value loan means you can insure not only the cost of the actual vehicle but also the cost of repaying the outstanding loan.
Insuring modified cars where the modifications have increased the vehicle’s apparent market value.
Covering imported vehicles which are not usually available in the UK and which would be difficult to determine a value for.
Benefits of Agreed Value Car Insurance
You can agree and claim any amount for the value of your vehicle.
The car is insured for a fixed set value, which will not depreciate or change.
You can choose to cover your vehicle for a lower value to save money on premiums.
You can obtain coverage for practically all vehicles, including vintage, imported and modified cars.
Agreed value car insurance is usually more expensive than market value insurance.
It may not be available from all insurance providers and is often only available as fully comprehensive insurance.
You may end up paying more money than you need for cover you don’t require or potentially lose out if you are under-insured.
Whichever policy you eventually chose, always ensure you are comprehensively covered with the right insurance for you and your vehicle.Previous Post Next Post