agreed value insurance
agreed value insurance
Has anyone any advice or had recent experience with the usual MG insurers concerning agreed value policies?
I have been with one of the popular brokers who advertise in Safety Fast! for many years, but since they changed ownership recently I have had lots of problems. I would advise everyone to check their insurance documents very carefully to ensure they do have the agreed value policy they believe they have.
Ian F
I have been with one of the popular brokers who advertise in Safety Fast! for many years, but since they changed ownership recently I have had lots of problems. I would advise everyone to check their insurance documents very carefully to ensure they do have the agreed value policy they believe they have.
Ian F
MGCC member
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
- Steven collins
- Posts: 126
- Joined: Fri Oct 31, 2014 5:20 am
- Forename: Steve
- Surname: Collins
- MGCC Member: Yes
- MGOC Member: Yes
- Location: North Essex
Re: agreed value insurance
Ian, I have used them for years (other insurers are available) and although they have changed management I have found their policies comparable to other companies, that said I have had to ring them today (classic policy due soon) to clarify a few points re agreed value and the introduction of getting NCD with the policy (I had no idea that was introduced) also to ensure that I still have breakdown cover.
What problems have you encountered so as to be prepared before I pay up for another year?
Steve.
What problems have you encountered so as to be prepared before I pay up for another year?
Steve.
Re: agreed value insurance
Thanks Steve.
Your experience sounds extremely familiar, much the same as mine.
I also have had to call twice for two different policies to clarify whether they were agreed value
On the initial one this year I checked my documents for 2020-2021 and found to my surprise that I had only a market value policy. When I had renewed a year ago I had believed it to be on the basis of agreed value.
Both renewals this year did not state "agreed value" and also included NCD, a change which rang alarm bells. This change seems to be associated with a change in name of the policy now being offered, the name no longer includes a reference to classic cars or collectors cars.
I have not been asked for my vehicles mileage this year (both are supposedly limited mileage policies), and was not asked about club membership. Very different from previous renewals.
This could of course be a problem with the renewals procedure which is very different, but my experience with the "market value" policy for the whole of last year is quite concerning.
I have not yet received the final documentation for the one I have so far renewed, but I will be checking the wording very carefully. Clearly I should have done that last year, and noticed that I did not have an agreed value policy.
I will decide on my 2nd and 3rd insurance policies once I have thoroughly checked this first one.
I would recommend everyone to do the same.
Would be good to hear of any other experiences with agreed value insurance
Ian F
Your experience sounds extremely familiar, much the same as mine.
I also have had to call twice for two different policies to clarify whether they were agreed value
On the initial one this year I checked my documents for 2020-2021 and found to my surprise that I had only a market value policy. When I had renewed a year ago I had believed it to be on the basis of agreed value.
Both renewals this year did not state "agreed value" and also included NCD, a change which rang alarm bells. This change seems to be associated with a change in name of the policy now being offered, the name no longer includes a reference to classic cars or collectors cars.
I have not been asked for my vehicles mileage this year (both are supposedly limited mileage policies), and was not asked about club membership. Very different from previous renewals.
This could of course be a problem with the renewals procedure which is very different, but my experience with the "market value" policy for the whole of last year is quite concerning.
I have not yet received the final documentation for the one I have so far renewed, but I will be checking the wording very carefully. Clearly I should have done that last year, and noticed that I did not have an agreed value policy.
I will decide on my 2nd and 3rd insurance policies once I have thoroughly checked this first one.
I would recommend everyone to do the same.
Would be good to hear of any other experiences with agreed value insurance
Ian F
MGCC member
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
- Charles Farran
- Posts: 467
- Joined: Fri Oct 31, 2014 11:08 am
- Forename: Charles
- Surname: Farran
- MGCC Member: Yes
- MGOC Member: Yes
- Location: Warwickshire
Re: agreed value insurance
Guys,
I've just renewed my insurance (Agreed Valuation) with Lancaster & had no issues. They moved to a 2 yearly valuation last year , having previously been annually for a number of years(& prior to that i think it was every 3rd year). The option is there to seek a revised valuation if required .
The policy does say a NCD is not usually applicable in policies of this type....
Cheers,
Charles
I've just renewed my insurance (Agreed Valuation) with Lancaster & had no issues. They moved to a 2 yearly valuation last year , having previously been annually for a number of years(& prior to that i think it was every 3rd year). The option is there to seek a revised valuation if required .
The policy does say a NCD is not usually applicable in policies of this type....
Cheers,
Charles
1980 Roadster
Re: agreed value insurance
Steve: further to this, I have just reviewed the documents received after paying the premium for my first renewal. I was assured that this would be on an agreed value.
The first of four documents includes the following note:
Important Policy Notes 1. This policy is written on a standard indemnity basis. Claims settlements will be based on a market value basis at the time of the loss and not on an agreed value basis.
This appears to confirm my worst fears. I have asked for clarification, and stated that I might be pursuing a full refund of my premium.
Ian F
The first of four documents includes the following note:
Important Policy Notes 1. This policy is written on a standard indemnity basis. Claims settlements will be based on a market value basis at the time of the loss and not on an agreed value basis.
This appears to confirm my worst fears. I have asked for clarification, and stated that I might be pursuing a full refund of my premium.
Ian F
MGCC member
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
Re: agreed value insurance
Thanks for your reminder Ian. My classics have been insured with broker Peter James for a number of years and I have just checked the current paperwork. I definitely have agreed value and fully comprehensive, but no NCD. The insurer is Equity Red Star and the premium is very reasonable.
My BGTV8 and Dolomite are both on one policy and both have separate agreed values. The way Peter James works is that if the vehicle is over 20 years old and worth less than £15,000 the policy holder can make his/her own valuation, supported with photos. The valuation form asks you to rank the various aspects of the car, eg. bodywork, paintwork, engine, interior, transmission, electrical equipment. This valuation is to be updated every two years. Obviously, in the event of a claim being made the insurer reserves the right to inspect the vehicle to ensure it matches the owner's description. The only proviso is that the cars must be MOT tested. Cars worth over £15,000 must have an independent valuation.
The only claim I have made (touch wood) was for windscreen breakage and that was dealt with very speedily.
My BGTV8 and Dolomite are both on one policy and both have separate agreed values. The way Peter James works is that if the vehicle is over 20 years old and worth less than £15,000 the policy holder can make his/her own valuation, supported with photos. The valuation form asks you to rank the various aspects of the car, eg. bodywork, paintwork, engine, interior, transmission, electrical equipment. This valuation is to be updated every two years. Obviously, in the event of a claim being made the insurer reserves the right to inspect the vehicle to ensure it matches the owner's description. The only proviso is that the cars must be MOT tested. Cars worth over £15,000 must have an independent valuation.
The only claim I have made (touch wood) was for windscreen breakage and that was dealt with very speedily.
Mike
1969 MGB GTV8 3.9 Conversion. Many classics have passed through my hands but the faithful BGT V8 is the last man standing.
1969 MGB GTV8 3.9 Conversion. Many classics have passed through my hands but the faithful BGT V8 is the last man standing.
Re: agreed value insurance
Thanks Mike. I've just dedicated today to trawling through the various companies offering suitable insurance. Not my ideal way to spend a day, but needs must!
Ian F
Ian F
MGCC member
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
1972 BGT, Blaze, Navy trim, recessed grill
1961 Midget, 948cc, Clipper Blue, Blue trim and weather gear
- Peter Cresswell
- Posts: 759
- Joined: Fri Oct 31, 2014 10:05 am
- Forename: Pete
- Surname: Cresswell
- MGCC Member: Yes
- Location: Stone, Staffordshire
Re: agreed value insurance
You might find this useful from Heritage, my insurers.
Take particular note about what happens if the Agreed Value is too low!
Pete
Note - this doesn't open full screen immediately. Look for it being downloaded in the tray at the bottom left of screen and open it from thereTake particular note about what happens if the Agreed Value is too low!
Pete
Pete
1969 MGB Roadster
2020 MG HS Exclusive
2007 Mercedes SLK
Plus 34 other cars since 1965
1969 MGB Roadster
2020 MG HS Exclusive
2007 Mercedes SLK
Plus 34 other cars since 1965
- Steven collins
- Posts: 126
- Joined: Fri Oct 31, 2014 5:20 am
- Forename: Steve
- Surname: Collins
- MGCC Member: Yes
- MGOC Member: Yes
- Location: North Essex
Re: agreed value insurance
Ian, I have received an email from them attached to it is an agreed value form to fill in, this must be filled in and renewed every 3 years along with current (6) pictures of your classic before they will sanction the Agreed valuation.
The NCB is part of their new classic policy this is due in part to people driving a classic car then changing to a modern vehicle and although they may have been driving for many years would not have accrued any NCD.
Steve.
The NCB is part of their new classic policy this is due in part to people driving a classic car then changing to a modern vehicle and although they may have been driving for many years would not have accrued any NCD.
Steve.
- Peter Cresswell
- Posts: 759
- Joined: Fri Oct 31, 2014 10:05 am
- Forename: Pete
- Surname: Cresswell
- MGCC Member: Yes
- Location: Stone, Staffordshire
Re: agreed value insurance
At first glance it appears that 'Market Value' would not be a problem. However the market value of many classic cars is lower the the sum of the parts needed to repair it. As an straightforward example, a car professionally rebuilt into a Heritage shell would cost around £35,000, but its market value is only probably £21 or 22,000. This is where an Agreed Value comes in. If the agreed value was £35,000 that is what the insurer would pay you, and so you could get the car professionally restored again. You don't get this for free though. The Agreed Value will cost about £5 per £1000 of value above the premium price. You do need to review the Agreed Value annually and increase it if you feel it is too low. The leaflet I have now posted explains what happens if the Agreed Value is to low - and much more too!
Pete
1969 MGB Roadster
2020 MG HS Exclusive
2007 Mercedes SLK
Plus 34 other cars since 1965
1969 MGB Roadster
2020 MG HS Exclusive
2007 Mercedes SLK
Plus 34 other cars since 1965