Why you need to en­sure that your clas­sic’s agreed val­u­a­tions are fully up-to-date

Classic Car Weekly (UK) - - This Week - Rob Mar­shall

In­sur­ance com­pa­nies are urg­ing own­ers to value their cars ac­cu­rately, fol­low­ing a spate of high-pro­file clas­sic car thefts.

Many en­thu­si­asts value their clas­sics in more than mone­tary terms, but re­al­ity dic­tates that any ap­pre­ci­at­ing as­set needs its true and ac­cu­rate value to be de­ter­mined.

A spokesman from Lan­caster In­sur­ance ad­vises own­ers to heed the cur­rent buoy­ant clas­sic car mar­ket. He says: ‘ With clas­sic car prices chang­ing con­stantly, it con­cerns us that own­ers may lose out if they have ei­ther no agreed value, or the wrong one. We strongly en­cour­age own­ers to sub­mit an agreed value an­nu­ally.’

Peter James, man­ag­ing di­rec­tor of Ste­wart Miller In­sur­ance and Peter James In­sur­ance, agrees, he says: ‘ We try to deal with this by com­mu­ni­cat­ing with the client and ad­vis­ing about the po­ten­tial prob­lems of un­der-val­u­a­tion.’

How your clas­sic is val­ued

Some in­sur­ance bro­kers use an in-house val­u­a­tion ex­pert based on doc­u­men­ta­tion sup­plied by the owner, to cal­cu­late a value for the pro­poser’s con­sid­er­a­tion. Hagerty In­sur­ance, for ex­am­ple, has its own ac­ces­si­ble on­line price guide tool that gives own­ers a rough in­di­ca­tion. Other com­pa­nies rely on own­ers sub­mit­ting ap­praisals of their clas­sics, which it then eval­u­ates.

How­ever, an agreed value is sub­ject to both par­ties agree­ing the fig­ure – own­ers should con­sider re­tain­ing ev­i­dence to sub­stan­ti­ate their asser­tions in case a dis­pute arises be­fore the agreed value is ac­cepted. Look at re­cent sell­ing prices of sim­i­lar mod­els, as well as price and buyer guides in the clas­sic car press.

Many clubs and busi­nesses of­fer some kind of val­u­a­tion fa­cil­ity but con­sider that not all in­sur­ance bro­kers will recog­nise them as of­fer­ing cast-iron guar­an­tees; re­mem­ber to bear this in mind, es­pe­cially if you are charged for the ser­vice. Yet, club, or ex­pert trader opin­ions, re­main use­ful tools to backup your cal­cu­la­tion of the cher­ished car’s worth. Keep a record also of re­cent ex­pen­sive labour and parts re­ceipts, plus log work that you have done to the car and note the value of any orig­i­nal op­tional ex­tras, or any prove­nance, that in­creases the ve­hi­cle’s worth.

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