Insuring your pride and joy – Classic Car Insurance
For some a car is just a way of getting from A to B, a method of transportation. For others however a car is seen in a completely different light, there are millions of car lovers out there, and for these people cars occupy a very special place in their hearts. While new cars are all well and good, there are lots of people that love nothing more than collecting, and lovingly restoring classic cars.
A classic car is an old car that has become a collector’s item, quite often a car falls in value as it gets older. The majority of classic cars however increase in value as they get older, which may mean that traditional insurance policies are not suitable.
Classic Car Insurance
If anything happened to your beloved classic car do you really think that you will be happy with the amount of money that you receive from the insurance company? The trouble is that the value you will receive often depends on the market value of your car. Market Values of classic cars can fluctuate considerably, especially during times of an economic downturn. If anything happens then your car might not be covered, or you might not get enough money to replace it.
Guaranteed Agreed Valuation
It’s possible to minimize these problems by using a guaranteed agreed valuation, the majority of car insurance companies especially ones specializing in classic cars will offer this service.
This cover will mean that if your classic car is ever written off then the insurer promises to pay the owner the amount that the car was valued for when the insurance policy was taken out. You will normally receive a certificate from the insurance company’s Valuer stating the value of the car. If you ever decide to switch insurers to take advantage of the better deals then you will want to make sure they will accept the same certificate, if not then you will have to pay again for another GAV.
The new insurance company might also offer you the option to pay money for a GAV; this will make sure that your car is completely protected from the company.
When taking out classic car insurance, most of the companies will need to see a copy of six recent photographs of the car that you are insuring. These ideally need to be dated and taken within the last couple of months if possible. They should clearly show the car all the way round, a photo of the engine block, and another photo inside the car showing the interior. Before sending photos find out what formats the insurance company accepts them in, digital photos will be the easiest option to send, you can normally send in printed photos including Polaroid’s.
Few insurance companies will accept photocopied photos as they will want to see color photos, these photos should be returned to you upon the completion of the valuation. Any previous bills can be included to support the valuation, for example larger wheels or a replacement engine may all add to the value of the car. Photocopied bills can be sent now, however if you ever claim they may want to see the actual receipts.
When the insurance company has their hands on all of the documents their valuers will then sit down and decide the guaranteed fixed value of the car. You will then receive a certificate showing the guaranteed amount that you will receive should anything happen. Normally this certificate is only valid from the date that it is issued, they are rarely backdated.
If you find that the value of your car changes substantially then you can ask your insurance company for another application form to reevaluate the value of your car. You will normally have to pay for each valuation, and each valuation change may also affect your insurance premiums so use it with caution.
If you do not have a guaranteed agreed valuation certificate and your car is written off then you will normally be paid the normal market value which may be much less than you expected.
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