01-06-2020, 08:30 AM
(This post was last modified: 01-06-2020, 09:02 AM by RH Insurance.)
Insuring your specialist vehicles – do you choose agreed value or market value?
by Emma Airey, Head of RH Specialist vehicle insurance
In today’s classic vehicle market values are constantly on the move. So, when you’re looking to buy insurance, should you have your cherished Austin, or other vehicles, insured on an ‘agreed value’ or a ‘market value’ basis? It’s a distinction that can suddenly become very important in the unfortunate event of your car being stolen or becoming an insurance write-off.
Choosing market value
Let’s take ‘market value’ first.
Insuring your vehicle on this basis means you will receive UP TO the amount stated on your schedule (and not a penny more). Indeed, the amount you receive could be less than the schedule amount if the current market value is less than the value you’ve insured your vehicle for.
Choosing agreed value
If, on the other hand, your vehicle is insured on an ‘agreed value’ basis, you will receive exactly the amount of money that the policy says your vehicle is insured for. This allows for more certainty but, particularly in a fast moving market, the importance of obtaining regular valuations and updating your ‘agreed value’ policy cannot be overstated.
The great news is an RH ‘agreed value’ policy is no more expensive than a market value policy (assuming there’s no increase in the vehicle’s value).
Whichever you choose – don’t go under insured
The best way to make certain your vehicle isn’t under-insured in this rapidly moving market (whether it’s on an agreed or market value basis) is to regularly benchmark its value against classified advertisements, auction results, and to speak to your Association/Club, fellow owners and restorers. If you haven’t reviewed your values in a numbers of years you may be pleasantly surprised.
NB: the value limit for members of A7CA to 'self-agree' their Austin 7 values was increased in recent years from £3,000 to £8,000 by RH - as a result of feedback from A7CA committee members. In the event your Austin is valued at £8,000 or below, you would just need to email hi-res pdf images of each side of your car, its interior, engine bay and (ideally) chassis to support your request for self agreed value to rh@ers.com. The Underwriters review each case on its own merits and, if they're in agreement, your vehicle would be insured on an 'agreed value' as opposed to 'market value' basis. For Austin 7s which are valued at more than £8,000, you would need to obtain either an Association/Club valuation - or one from an independent specialist. Again, the valuation report and accompanying images would need to be emailed to rh@ers.com.
With regard to cherished salvage, since its inception in 1977, the RH Insurance policy wording has made provision for retention of cherished salvage (providing the vehicle is aged 20+ and repairable within DVLA guidelines) by its customers - free of charge. In simple terms, this means that in addition to your market or agreed value settlement - you also receive the salvage. By comparison, most insurers offer their customers the option to 'buy back' the salvage (some will retain it themselves) - and it's not unusual for them to deduct 40% (or more) of the vehicle's value. This, therefore, has a detrimental effect on your final settlement amount if you wish to retain your salvage.
As always, if any A7CA members have any queries re policy benefits/cover under the RH scheme, please don't hesitate to contact Emma Airey - emma.airey@hiscox.com / 07956 232758. She is always happy to help, a fellow petrol-head, and would love to hear from you.
RH's underwriting team can be reached on 0333 043 3911. Email: rh@ers.com.
With best wishes,
Emma & the RH Team
by Emma Airey, Head of RH Specialist vehicle insurance
In today’s classic vehicle market values are constantly on the move. So, when you’re looking to buy insurance, should you have your cherished Austin, or other vehicles, insured on an ‘agreed value’ or a ‘market value’ basis? It’s a distinction that can suddenly become very important in the unfortunate event of your car being stolen or becoming an insurance write-off.
Choosing market value
Let’s take ‘market value’ first.
Insuring your vehicle on this basis means you will receive UP TO the amount stated on your schedule (and not a penny more). Indeed, the amount you receive could be less than the schedule amount if the current market value is less than the value you’ve insured your vehicle for.
Choosing agreed value
If, on the other hand, your vehicle is insured on an ‘agreed value’ basis, you will receive exactly the amount of money that the policy says your vehicle is insured for. This allows for more certainty but, particularly in a fast moving market, the importance of obtaining regular valuations and updating your ‘agreed value’ policy cannot be overstated.
The great news is an RH ‘agreed value’ policy is no more expensive than a market value policy (assuming there’s no increase in the vehicle’s value).
Whichever you choose – don’t go under insured
The best way to make certain your vehicle isn’t under-insured in this rapidly moving market (whether it’s on an agreed or market value basis) is to regularly benchmark its value against classified advertisements, auction results, and to speak to your Association/Club, fellow owners and restorers. If you haven’t reviewed your values in a numbers of years you may be pleasantly surprised.
NB: the value limit for members of A7CA to 'self-agree' their Austin 7 values was increased in recent years from £3,000 to £8,000 by RH - as a result of feedback from A7CA committee members. In the event your Austin is valued at £8,000 or below, you would just need to email hi-res pdf images of each side of your car, its interior, engine bay and (ideally) chassis to support your request for self agreed value to rh@ers.com. The Underwriters review each case on its own merits and, if they're in agreement, your vehicle would be insured on an 'agreed value' as opposed to 'market value' basis. For Austin 7s which are valued at more than £8,000, you would need to obtain either an Association/Club valuation - or one from an independent specialist. Again, the valuation report and accompanying images would need to be emailed to rh@ers.com.
With regard to cherished salvage, since its inception in 1977, the RH Insurance policy wording has made provision for retention of cherished salvage (providing the vehicle is aged 20+ and repairable within DVLA guidelines) by its customers - free of charge. In simple terms, this means that in addition to your market or agreed value settlement - you also receive the salvage. By comparison, most insurers offer their customers the option to 'buy back' the salvage (some will retain it themselves) - and it's not unusual for them to deduct 40% (or more) of the vehicle's value. This, therefore, has a detrimental effect on your final settlement amount if you wish to retain your salvage.
As always, if any A7CA members have any queries re policy benefits/cover under the RH scheme, please don't hesitate to contact Emma Airey - emma.airey@hiscox.com / 07956 232758. She is always happy to help, a fellow petrol-head, and would love to hear from you.
RH's underwriting team can be reached on 0333 043 3911. Email: rh@ers.com.
With best wishes,
Emma & the RH Team
RH Specialist vehicle insurance