Austin 7 values

[Barry Townsend]

Following on from my previous post I coincidentally have been renewing my RN insurance for the year. I've left the estimated value as per last year and wondered how the insurance companies assess the value in the event of an unfortunate write off.
It seems there is no consistent level to set the value against and it must vary considerably depending on condition, rarity and provenance etc.
We all probably assume that we own the very best example of the breed and ours is the most valuable car in existence but there must be set standard from which to work.
I, like most, keep an eye on what the market is doing and get more confused day by day.
The old adage that an item is only worth what someone is prepared to pay for it surely applies.
Fortunately WV1605 is going nowhere, I've never been so in love with a car before, Alfie is my pride and joy as my wife constantly reminds me!!

[bob46320]

Interesting, with household replacements of value, the payout should include payment for travel to find the item. For instance if it were George 5th silver, it has a value plus money to find a suitable replacement. I wonder if the same goes for collectable cars ??

[Colin Wilks]

You can usually negotiate an "agreed value" which gives certainty to both insurer and insured.

[Tony Betts]

Insurance values on anything but cars, is usually a 1/3 over what it would be expected to be worth. This is for suggested by Bob. Like finding a replacement, and collecting it etc.

Not totally sure how the clubs treat this.

But as colin suggests, you can get an agreed value. This is usually done through the austin 7 clubs.

I've seen many valuations that have been done in the past. And they usually look a bit high. But not a 1/3rd.

An interesting question, perhaps worth a reply by those in the clubs that do the valuations.

The other side of values you have to look at, is the higher the value. The more you are going to pay on your insurance

Thanks tony

[Renaud]

Just one remark about that topic. Maybe not appropriate but...
Here (in France) we have what is called a "Carte grise de collection" for cars/bikes etc. older than 30 years.
If you ask for that mention on your carte grise you have some advantages and some disavantages.
On the minus side you can't work with your car. The "collection" category is definitive. If you sell it it will still be. On the plus side, the MoT is much lighter.
And one important point if you have an accident your insurer cannot declare it written off. That's because it has now a patrimonial value.
Hope I made that clear!

[Zetomagneto]

If you have a market value policy, the insurer will pay market value base on similar cars offered for sale at the time of your claim.While we all hope not to have an accident , if you see a car very similar to yours in terms of age, model, condition etc it can be beneficial to print off the advert and keep it on file.
Do this several times.
With a market value policy there is room for negotiation in the event of total loss.

If you have an agreed value policy make sure its for the value you want, an insurer will not pay more
than the agreed value in the event of a total loss.There is no negotiation, the value was agreed at policy 
inception.

[Mark Dymond]

Its also important to check what the policy says in the case of a write off, some classic car policies will let you keep the wreck. It doesn't take much damage to write off an car, many owners may repair regardless of the cost.

[Nick Turley]

"Market value" is always a vexed question and open to debate and argument.
With the RH association policy you can insure for what you think your car is worth (not to be confused with market value). That then becomes the maximum amount that RH would ever pay and that assumes that figure does not exceed the market value. 
In my personal experience RH seem to be pretty fair about this.
But if you want certainty you need to have an "agreed market value" put on your policy agreed by the insurance company.
Most clubs have a valuation officer who will give an independent valuation when you take out your policy. 
For those that need certainty they would be wise to have this redone each year.

Only that makes no discussion and no argument.

[Reckless Rat]

Just to clarify what Renaud posted. If you have a classic vehicle in France on a "collection" registration document you cannot use it for hire or reward, for example wedding hire.

[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