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How is insurance "Market Value" calculated ?


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  • Gold FFM

I'm looking to renew insurance soon - so a little question ....

I could choose "Agreed Valuation" or I could choose "Market Value" - how does this get calculated in the event of a claim?

Any thoughts/guidance/experience here would be most welcome

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On an Esprit, I'd be looking for an Agreed Value.  Market Value is very subjective and in a market where relatively few cars circulate, you'll struggle to pull together the supporting evidence to counter a derisory offer from your insurers should the worst happen.

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Thanks @KennyN - just as I suspected.

In which case, how do they come to an "Agreed valuation" ? example I think the car's worth £25K, they say it's worth £20K - where's the agreement 😉  ? 

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Market value represents what the insurance company feels is the market price for your car. It is most likely to be less than you think it is worth. If your car is written off then they will only pay out what they think it's worth and if you disagree you will have to prove it's worth more - adverts for similar cars in similar condition etc. Not easy and normally leads to disputes/unhappy claimants.

Agreed Value policies agree a value of the car at the outset and normally lasts 12 months. You'll need to send photos and a condition report and get it 'agreed' with the insurer. Policy is usually mileage restricted. The massive benefit if an agreed valuation policy is that it means you know exactly what you get if the car is stolen/written off.  

The 'agreement' is made at the start of the policy so if you don't agree with the valuation then you can go elsewhere before there is a claim/issue. In reality I've never heard of a 'reasonable' valuation being turned down.

As others have said, due to the rarity of the Esprit it is an absolute no brainer to get an agreed valuation off you get the chance

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If you get a valuation from, for example, Club Lotus i would expect the insurance company to agree to that.

I agreed a value a few years ago and will need to update it this year.

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Ask your insurance company and they will tell you if you need to get an external independent valuation. Mine simply asks for some photos and a condition report but they will often charge you for the privilege of agreeing a value with you. 

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7 minutes ago, Bazza 907 said:

Ask your insurance company and they will tell you if you need to get an external independent valuation. Mine simply asks for some photos and a condition report but they will often charge you for the privilege of agreeing a value with you. 

Going through the process now; a 2-page form and some pictures .....  👍

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I have agreed value - lasts for 2 years - have to complete a form and send at least 6 recent photos. I suggest the value and they agree to it. Haven't had one turned down yet. I increase the value every couple of years and use recent adverts as a guide.

Dave - 2000 Sport 350
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  • 4 months later...
On 04/03/2021 at 16:24, thebartman said:

Going through the process now; a 2-page form and some pictures .....  👍

I am about to renew my insurance on my V8 with agreed value. The insurance company have suggested £40k which I think is low. Where did you get the 2-page condition form?

 

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Definitely worth getting an agree valuation for the minimal outlay. Been stung once before by a rubbish market valuation and it ended up taking 18 months and a small claims court case to get the right value for the car in question - not a Lotus in this case.

ClassicLine insurance agreed valuations last for two years (assuming you renew your policy for a second year) and cost £24. You just fill in a form and submit half a dozen recent photos and if they agree you get a letter and certificate back from them a week or so later.

Not sure what happens if they don't agree with your valuation though. My first valuation when I bought the Esprit they agreed with (maybe I lowballed my valuation 🤔). I renewed it last week and upped the value because of the work I've done to it but not yet heard back from them. I don't know if that's because they're busy or struggling to benchmark my valution 😟

Norfolk Mustard S4s #1 :)

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3 minutes ago, tomcattom said:

Definitely worth getting an agree valuation for the minimal outlay. Been stung once before by a rubbish market valuation and it ended up taking 18 months and a small claims court case to get the right value for the car in question - not a Lotus in this case.

ClassicLine insurance agreed valuations last for two years (assuming you renew your policy for a second year) and cost £24. You just fill in a form and submit half a dozen recent photos and if they agree you get a letter and certificate back from them a week or so later.

Not sure what happens if they don't agree with your valuation though. My first valuation when I bought the Esprit they agreed with (maybe I lowballed my valuation 🤔). I renewed it last week and upped the value because of the work I've done to it but not yet heard back from them. I don't know if that's because they're busy or struggling to benchmark my valution 😟

 

That's because the insurer carries out the valuation, not the broker. They have to send all the bumf off before they get an answer. I've been insured with ClassicLine for years, the insurer is Eagle Star I think, and they've never questioned my valuations. AIB on the other hand did, so I went back to ClassicLine again.

Margate Exotics.

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18 hours ago, Chillidoggy said:

 

That's because the insurer carries out the valuation, not the broker. They have to send all the bumf off before they get an answer. I've been insured with ClassicLine for years, the insurer is Eagle Star I think, and they've never questioned my valuations. AIB on the other hand did, so I went back to ClassicLine again.

Eagle Star ceased to exist (except in Ireland) in 2002, when they were taken over by Zurich.

Blessed with the competence to be a slave to the incapable.

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3 hours ago, Colin P said:

Eagle Star ceased to exist (except in Ireland) in 2002, when they were taken over by Zurich.

It’s Equity Red Star, or ERS.

Margate Exotics.

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  • 1 month later...

I'm also insured with Classic Line with an agreed value for my Evora.   I had to send pictures of the car and a list of reasons to support my valuation and any receipts to show proof.  They were more than happy with the information I supplied and it didn't take me too long to collate the information.

I recently renewed with them again and as my car's valuation hasn't changed they are happy to take the previous valuation and I didn't have to send in the supporting material again. 

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