Duration of Club Agreed Value

[AndyTV8]

Evening All,

i couldn’t find this mentioned elsewhere..... I know Club agreed valuations used to be valid for two years, is that still the case?

In the past i’v had a reminder from PJ that it needed renewing, but not this time - I seem to have a distant memory that they were lengthened, can anyone confirm, or perhaps I am dreaming?

I’ll ring tomorrow to double-check.

cheers..... Andy 

[Pete Lewis]

If you had a club valuation ring angie at  hq she will have a record , yes its 2 years

Club send their copy direct to your insurance company returning the orig  to you.

Pete

[AndyTV8]

Thanks Pete....yes it is a Club one, I’ll get it confirmed on the phone tomorrow 

cheers......Andy

[Guest]

I had to smile this year when I had my AIV renewal assessed.

In 2017 I had the assessment carried out at the SEM and came back as £11.5K - that's good I decided.

This year I could not attend the SEM and submitted my application online with about a dozen photos and detailed description . Since 2017 the car has been improved upon. 

The assessment came back this year as £9.5K !!!!!!!!!

Next year I will go the SEM and have it done properly, as it appears that an online assessment is a poor substitute or certainly was in my case. The insurance company must have been very grateful to the TSSC for that reduction !!

Pete - it probably had something to do with the underlay being dumped in the soft-top bin 🙄 !!!! 

Regards.

Richard.

[ShaunW]

3 hours ago, classiclife said:

I had to smile this year when I had my AIV renewal assessed.

In 2017 I had the assessment carried out at the SEM and came back as £11.5K - that's good I decided.

This year I could not attend the SEM and submitted my application online with about a dozen photos and detailed description . Since 2017 the car has been improved upon. 

The assessment came back this year as £9.5K !!!!!!!!!

Next year I will go the SEM and have it done properly, as it appears that an online assessment is a poor substitute or certainly was in my case. The insurance company must have been very grateful to the TSSC for that reduction !!

Pete - it probably had something to do with the underlay being dumped in the soft-top bin 🙄 !!!! 

Regards.

Richard.

Isn't it possible that values might have gone down generally? Two years ago even the pound notes in my bank were worth more than they are now, so I'd expect a frivolous luxury item to be similarly affected. I realise we've seen some rather ambitious asking prices for cars lately but it's less clear how much these cars are actually realising. 

 

[Guest]

8 hours ago, ShaunW said:

Isn't it possible that values might have gone down generally?

Hello Shaun,

I did consider that and as far as the buying & selling market goes for classics I would say that has certainly cooled off somewhat in the main; probably no bad thing !!

However AIV, as you know, focuses upon the cost of repairs or total loss. Hourly rate and parts' prices only increase and that is where the agreed valuation plays its part.

My car, regardless of improvements, will cost more to repair in 2019 than it would have done in 2017 of this there is no doubt. That is the subtle difference between selling a car and recovering the correct insurance value.

Not withstanding the above, the main point for me is that the car has an AIV rather than a general market value. A review can be undertaken next year at the SEM.

Best wishes.

Richard. 

[AndyTV8]

Richard is spot-on in my view, there is often a blurring of sale-value and agreed value.... insurance-wise, agreed value needs to cover the cost to repair to pre-accident condition (or payout in the event of a total-loss) it wouldn’t usually be Equal to prospective sale price.

...... Andy 

 

 

[ShaunW]

Thanks for the comments about AIV. I'm genuinely always happy to be corrected.

The phrase 'payout in the event of total loss' is mentioned, doesn't that imply that you would be compensated for the loss you'd incurred? In legalese 'made whole'. Insurance doesn't usually provide you with a windfall and replacing your car 'like for like' must surely take the cost of doing that into consideration. 

I must say that I find it hard to differentiate between the words 'value' and 'price' in this context. An item's value is the same as what the item costs in the mind of this particular man on the Clapham omnibus. If I can buy apples for 20p how could they be valued at 30p?

 

[Clive]

Part of the issue is that so many cars are unique.

You can't just go and buy a concours GT6, they are too rare. So the AIV should enable somebody to buy a very good one and maybe cover costs to improve to concours. That is a poorly explained-by-me explanation. Simpler is my modified spitfire. My AIV was based on what it would cost to buy a very good spitfire, then modify to what I own. (in fact the additional amount covers the parts costs, I couldn't get somebody to do the mods within the extra) So it is a fair system. Trouble is sales values are often about 2/3rd AIV values, though that may be changing.

 

As to Richards car, I am unsure why the value has gone down, it is certainly a better car now with some nice improvements on what was a good car before. Would have expected at least 1K uplift in value. It is a really good car, one I would happily get in and do a 3K European trip. 

[AndyTV8]

Sorry Shaun, I didn’t mean to confuse matters - my interpretation of ‘total lose’ in this case is a write-off, you have totally lost your car.

The amount an insurance company will pay in on your behalf to repair is going to be limited by the agreed value and the terms of the policy.

there are some policies which include a 25, or 50 or 75% ‘uplift’  whereby the insurance will payout the percentage over/above the insured value - of course, you usually pay a little more for the privilege but some folk may be happy to do so. Of course, if you have an agreed value of £15k, but you believe it would only fetch £10k if you were to sell, you kind of already have a 50% uplift!

....... Andy 

 

[Colin Lindsay]

On 19/09/2019 at 05:52, clive said:

Part of the issue is that so many cars are unique.

You can't just go and buy a concours GT6.

Sometimes you can, but not off the shelf. This is most likely why they don't offer a 'like for like' policy. They'll pay out based on what experts say a car like that is worth, which I suppose is the best they can do.

What most companies won't do is pay out for the ancillaries or upgrades unless you have specifically listed them in the policy application, so if you have a state of the art sound system or Formula 1 suspension, they'll only pay out for standard unless you have notified them of the extra equipment or expense. It can be a difficult one with our cars as they can't easily find a standard one for comparison, so it all comes down to a good AIV that covers all of the expensive modifications and add-ons (so you must notify the Club when applying, not when claiming!) and a good company that will pay out when you need them to without quibble.

The old 'leather jacket and expensive laptop in the rear seat' dodge is well known by now..