Agreed/Guaranteed Value Insurance: What do other people do?

[InkBlue]

Hi all

I bought a bit of a shed in 2015 which had a good solid chassis which I paid good money to have steam-cleaned, treated and coated inside and out. Since then I've replaced the various moving parts which have been on their way so the amount my Max is worth is a lot more than the age/mileage i.e. market value would suggest.

I know you can get agreed value insurance where you will get an agreed amount in the event of a write off- does anyone have any suggestions of where's best to try? This must be an issue others here have experienced.....

[ChrisKnottIns]

Hi, Agreed Value protects the value of the finished vehicle rather than the amount you've spent. I suspect the car is worth the upper end of Glass's but it won't attract anything higher just because you've spent alot on it I'm afraid.

best,
Nick

[InkBlue]

Thanks for the reply- just a couple of questions....

- Isn't value just want someone's willing to pay for it? If a vehicle's been heavily modified and/or many parts replaced shouldn't that increase the value? Obviously not £ for £ but if I'd replaced the engine with a new engine and replaced most of the moving components surely the previous mileage would become much less relevant?

- I was under the impression that you could insure anything for any value you like providing you are willing to accept the premiums? Isn't insurance a simple calculation of risk (i.e. likelihood x severity) so if I'm saying I'd like a pay out of, say, twice the market value then that would broadly double my premiums? (because likelihood of a write-off is unchanged)

Is your reply related to your company or your impression of the industry as a whole?

Regards,

Adam

[ChrisKnottIns]

Thanks for the reply- just a couple of questions....

- Isn't value just want someone's willing to pay for it? If a vehicle's been heavily modified and/or many parts replaced shouldn't that increase the value? Obviously not £ for £ but if I'd replaced the engine with a new engine and replaced most of the moving components surely the previous mileage would become much less relevant?

- I was under the impression that you could insure anything for any value you like providing you are willing to accept the premiums? Isn't insurance a simple calculation of risk (i.e. likelihood x severity) so if I'm saying I'd like a pay out of, say, twice the market value then that would broadly double my premiums? (because likelihood of a write-off is unchanged)

Is your reply related to your company or your impression of the industry as a whole?

Regards,

Adam

Hi Adam,

The valuation for an Agreed Value policy should ideally be supplied by a marque expert and will take account of how special/rare an example the vehicle is. If you replace the 80k mile engine in an '08 SMax to an 20k mile engine, it's just an '08 SMax with a lower mileage engine (and Glass's guide responds). However, as it ages, if the model is rare and a particularly fine example, there's an argument that then it will outshine the competition by enough that special consideration is required in the form of an AV policy. I think some will fudge you an AV policy on newer (dare I say run of the mill) cars but that's not the normal view. Sorry it's not what you want to hear.

N