Agreed Value

It would be interesting to put it to the test though. 

Can you imagine insuring a Mk1 Golf for £10k and paying the premium? The next week someone ran into you. 
Who says the car is worth £10k? The owner? The market or the insurance company? 
It may be worth £10k to the owner but is that a realistic market value? What is it being compare to? Just because an owner says its worth that much doesn't mean it is.

The test is when it's a total loss and the arguing starts. 

Its not complicated - the insurance is Agreed Value.

If you wanted £10000 agreed value insurance, then the insurance company may ask for evidence that its a reasonable value for the car, eg club valuation, similar cars, valuation by professional. Until they're satisfied, its not "agreed"!

In the case of the above scenario, the arguing (negotiation) is done during the inception of the insurance, not if/when a claim is made. That's one of the key differences between agreed value and other insurance.

Of course, its fraudulent to insure something massively over its value and then suffer its loss and subsequently claim on the insurance for gain. But agreed value insurance allows the owner (when the value is not that high) to say the value, and of course an owner may not accurately value their car without it being fraudulently high.

Plenty of background reading here:

http://vwgolfmk1.org.uk/index.php?page=search&type=misc&id=ocf_posts

it seems that insurance companies will accept an owner's valuation, with photos, up to £10,000 without further evidence eg club valuation.

Are you confusing AGREED VALUE with when they ask you how much the car is worth? which they ask on a normal policy.

Agreed value is exactly what it sais.

If they doubt its worth what you say at the point of insuring it they will either A, lower the value. B, ask for proof. C, send someone out to inspect it.

Once they have agreed it then job done.

Oh and you dont go by MARKET VALUE on an agreed value policy.

Market value is for your everyday policy

You are right Paul, my insurance was market value for the first 3 weeks untill i proved the value.

Then they sent me new paperwork with the agreed value on

In not confusing anything Ceri. I know what you are referring to. Mine is on an agreed valuation and I've been through the hoops plenty of times with various companies. 

I just can't see a company insuring a Mk1 Golf for £10k unless its REALLY special - say a series 1, low mileage original. 

If you can get the cover then fine but that's the value to the owner. Not what the cars 'worth'. 

Oh and before we all get really worked up…. This is one topic that the Carole Nash team will be able to cover for us at the AGM. 
Make sure that you're in the meeting for some input from the guys.

If there's anything else that you'd like to know about insurance cover then be ready with your notes. Im sure they'd appreciate the questions!!!! 

It may not be what the cars worth, but if the insurance company agree tthe figure then its set in a contract

Aghh i get it, i have an agreed value as with everyone else and its agreed by the insurance company and on all my documents, so as you said Ceri biding contract so i would be fairly confident in the event i was at fault my insurance would pay out. The situation that would worry me is if i was not at fault and the 3rd parties insurer wanted to nomiante fixed garage / payout price etc. In that situation i would expect my insurance company to stand thier ground on my behalf and inform the 3rd parties insurer that my car has the said agreed value and that would be what they expect in terms of a payout etc

Unfortunately Rich, if someone crashed into you there insurance would just pay market value.

It's only agreed value if you claim through your own

Dano said

If there's anything else that you'd like to know about insurance cover then be ready with your notes. Im sure they'd appreciate the questions!!!! 

A good question would be, whether they will cover (or pay out) on a car which has been fitted with stretch tyres.

BigNormRivage said

Unfortunately Rich, if someone crashed into you there insurance would just pay market value.

It's only agreed value if you claim through your own

That`s not exactly the case, this would only come into play if "you decided" to let the third party insurer handle the full claim for you.

In normal circumstances this would be the ideal situation to let them handle it for you, but in a case where you have an agreed value on a classic policy with your own insurer, then "always" make the claim through them and let them recover there losses after paying you out the agreed amount.

That's interesting Kenno, i didnt know you could do it like that.

In a non-fault claim, your own insurance company would more than likely not deal with it, instead passing it on to an accident management company which is separate to them (for example, www.helphire.co.uk). Typically they would hire an equivalent car and negotiate uninsured loss recovery, eg incidental expenses. Whether the difference between market value and agreed value is claimable, I don't know. It would depend on whether you achieved "betterment" by it.

If it isn't, you may be able to claim the difference from your agreed value insurer.

There seems to be an element of things not being as clear as they first appeared.

I'm no expect but you can bet your wage packet that an insurance company would argue the toss if they were to cough up £8500 for a loss.

if insurance companys dont want to pay out they wont

agreed value or not, they will find something you haven't declared and not pay

they are buggers

I think that the Carole Nash team should answer these questions as they are the professionals and we are just relying on 'in my opinion' comments.

I'll make a note for the AGM.

Wow! I don't realise my thread would spark a debate  

It would be wise to clear it up as things have been mentioned that I hadn't even thought of.

Thanks for mentioning it m00. 
There are a few issues that need clearing up I think!!