Classic car value - insureance write off value

[paulfoel]

Got a 1987 classic mini. Paid £3500 for it a month or so ago so its worth a bit more than a standard mini of this age. (20K miles, japanese special edition etc).

 

When I swapped my insurance over I did make sure I told them how much it was worth.

 

Anyway, some young girl ran into the back of it when it was outside the shops and caused some damage. Not a huge amount but some.

Obviously, not my fault, but now my insurance company are saying it might be written. Sounds like they're maybe basing this on something like £500-£1000 value of the car rather than the proper value.

 

Is there anything I can do about this? Surely, the third party or they're insurer are obliged to put things right.

 

Someone said I should have a guaranteed value classic car policy but I did mention the value to insurer when I changed the insurer over. Also, surely my policy doesnt matter if the accident was not my fault at all. I could be insured third party only...

 

Anything I can do about this? Otherwise I could be a few K out of pocket here...

[sailor sam]

Arggg! I remember someone telling me about classic car insurance also, so I fear this 'someone' may be right. As far as I know (perhaps Mossycat; our insurance expert will clarify), if it is a normal policy then the insueres will go on the value as stated in Glass's guide. One thing i'm not clear; are you or are you not TP only?

 

__________________

Please Note

 

The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

I would always urge to seek professional advice for clarification prior to taking any action.

 

Please click my scales at the bottom of my profile window on the left if you found my advice usefull.

[paulfoel]

No Fully Comp. But surely that doesnt matter here because its the other insurer who'll be paying up. Like I said, car was parked.

 

After all, I've got no obligation to advise every insurer in the country that if their client hits me its gonna cost more than normal.

[paulfoel]

Surely a third parties insurer cant only give the standard Glass' value guide to a car their insured hits?

 

Otherwise, you'd be scared to drive a classic car in case someone hit it and you'd get £500 paid out !!!

[sailor sam]

Surely a third parties insurer cant only give the standard Glass' value guide to a car their insured hits?

 

Otherwise, you'd be scared to drive a classic car in case someone hit it and you'd get £500 paid out !!!

 

I agree, but that is why there is this classic car insurance. As you say, under the circumstances, it will be the TP insures paying out so at least you NCB should not be affected. But all insurers will mitigate their losses and attempt to pay out the minimum value. What is the value stated in your insurance schedule?

 

__________________

Please Note

 

The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

I would always urge to seek professional advice for clarification prior to taking any action.

 

Please click my scales at the bottom of my profile window on the left if you found my advice usefull.

[paulfoel]

I agree, but that is why there is this classic car insurance. As you say, under the circumstances, it will be the TP insures paying out so at least you NCB should not be affected. But all insurers will mitigate their losses and attempt to pay out the minimum value. What is the value stated in your insurance schedule?

 

Yes, agreed they're going to pay out as little as possible.

 

However, if for example, they insure a 17yr old boy racer in his souped up nova and he shunts into the back of a £100K Ferrari then its just tough luck....

[Mossycat]

There's a world of difference between a standard motor policy and an agreed value motor policy.

 

When an insurer asks the value of the car on a proposal form you are NOT insuring it for that amount, they ask that because if the value you state differs widely from the value they expect a car of that make/model/age to be then it flags alarm bells and they will ask for some more information before insuring it.

 

If you are fully comp then your own insurers will deal with the accident and make you a payment, and then they will recover their money from the responsible party. However, they do have a duty to mitigate their losses so they will only pay out it's true value.

 

You might be in for a rough ride with this one if the value of your car is so much higher than a standard car because if you didn't have an agreed value on a specialist car then the insurers will have based their premiums on a standard car (ie what they would expect to pay out in value if the car is a total loss), so they may well ask you to pay the difference in premiums now.

 

At the end of the day insurance is there to put you back in the position you were in prior to the loss, if your own insurers give you the run around or argue about the vlue you could always ask them to close the claim and go direct to the third party insurers yourself and seek a settlement.

 

In order to fight this properly you need documentary evidence that your car is not a standard run of the mill car, and also evidence of what similar models are currently selling for, have that to hand ready and post back when they make you an offer.

 

Mossy

[paulfoel]

There's a world of difference between a standard motor policy and an agreed value motor policy.

 

When an insurer asks the value of the car on a proposal form you are NOT insuring it for that amount, they ask that because if the value you state differs widely from the value they expect a car of that make/model/age to be then it flags alarm bells and they will ask for some more information before insuring it.

 

If you are fully comp then your own insurers will deal with the accident and make you a payment, and then they will recover their money from the responsible party. However, they do have a duty to mitigate their losses so they will only pay out it's true value.

 

You might be in for a rough ride with this one if the value of your car is so much higher than a standard car because if you didn't have an agreed value on a specialist car then the insurers will have based their premiums on a standard car (ie what they would expect to pay out in value if the car is a total loss), so they may well ask you to pay the difference in premiums now.

 

At the end of the day insurance is there to put you back in the position you were in prior to the loss, if your own insurers give you the run around or argue about the vlue you could always ask them to close the claim and go direct to the third party insurers yourself and seek a settlement.

 

In order to fight this properly you need documentary evidence that your car is not a standard run of the mill car, and also evidence of what similar models are currently selling for, have that to hand ready and post back when they make you an offer.

 

Mossy

 

Mossy,

 

Thanks for the advice. I'm learning about insurance here now.

 

I did say the value of the car was £3500 (standard price is probably £1000) but no-one flagged that up. I thought that that was what that figure was for - insured value.

 

Yes. I can see how my insurer may be forced to only pay out what they are able to - i.e. standard valuation. No good for me.

 

Anyway, they're getting back to me later to today because my preference is that they just do the repairs anyway. I guess the problem is that if they;ve worked out as cost of repairs anywhere approaching £1000 then thats whats happening.

 

Of course, with the true value of the car being £3500 then I cant see how the repairs would cost anywhere approaching this. It was only a small bump.....

 

Yeh. I'll see what happens and if need be drop it with my insurer and fight it out with the 3rd party one. Are you my insurer going to be ok with this? i.e. starting a claim and then dropping it?

 

Not concerned about being able to prove that its worth the extra. That is what they're going for and I'm sure I could get an independent valuation. Also, I only bought it a month ago.

 

Lots of hassle though because some dosy bint was on her phone while driving into the car park !!!

 

Reckon I can claim for all my wasted time off the 3rd party insurer? LOL

 

When this is sorted I'm gonna see where I stand with my policy though and check to make sure car is covered for proper value. Cancel and get proper classic car insurance if necessary.

[Mossycat]

OK wait and see what your insurer comes back with and then post back and we'll advise you of the best way to get what you want (if that is possible).

 

I'd certainly be looking to get an agreed value policy if your car is that specialist and above GG values, but you can sort that out once your car is back on the road.

 

Yes you can claim for your wasted time off the TP, it's called uninsured losses and you claim for anything that this accident has cost you in terms of time (getting estimates etc), phone calls, letters, out of pocket expenses (stationery, postage), general inconvenience (stick in £25 for that one), loss of use or hire car, etc.

 

Mossy

[paulfoel]

OK wait and see what your insurer comes back with and then post back and we'll advise you of the best way to get what you want (if that is possible).

 

I'd certainly be looking to get an agreed value policy if your car is that specialist and above GG values, but you can sort that out once your car is back on the road.

 

Yes you can claim for your wasted time off the TP, it's called uninsured losses and you claim for anything that this accident has cost you in terms of time (getting estimates etc), phone calls, letters, out of pocket expenses (stationery, postage), general inconvenience (stick in £25 for that one), loss of use or hire car, etc.

 

Mossy

 

OK. Will do....