In this article, we want to revisit Agreed Valuation, letting you know exactly what it is and how it can help with protecting your loved ones (the cars not your family) as part of Heritage’s specialist insurance services.
In technical terms, Agreed Value is defined as:
“a contract under which the insurer agrees to pay a stated amount in the event of a total loss of the property insured without any adjustment for depreciation or appreciation.”
This means that if you take out an Agreed Valuation insurance policy with us, you’ll be paid a pre-agreed amount of money for your classic vehicle if it’s written-off or stolen and not recovered further down the line.
What’s the difference?
Standard car insurance policies usually pay out on the market value of the vehicle at the time, which is still open to interpretation but more often than not comes down to the cost of replacing that particular make and model.
With classic cars and bikes, there’s much more fluctuation in the market and values are often harder to determine, so Agreed Valuation provides peace of mind for you, the owner, as you know exactly what value would be paid out in the event of a claim.
Once we reach that agreement, we’ll confirm your agreed value in writing so that you have a record.
Can I change my agreed value?
Yes, it’s important to keep a close eye on how your vehicle is performing in the current market. You can then talk to us to make necessary adjustments to the value of your classic car when it comes to appreciation.
We will also include salvage retention as part of your agreed value policy, so if you do write-off your beloved but it can be repaired and still roadworthy, you’ll be able to ‘buy back’ the vehicle to repair it or use it for parts.
Give us a call today and let’s agree the value of your classic: 0121 248 9304.