MGB Register Forum

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

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.

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

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

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

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.

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

You might find this useful from Heritage, my insurers. 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 there

Take particular note about what happens if the Agreed Value is too low!
Pete

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.

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!