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