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INSURANCE AGREED VALUATIONS


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Gary

Won't claim to be an expert but from my experience YOU pick a figure and THEY then 'agree' with it, hence the term 'Agreed Insurance Valuation'

What Sue had to do was send to the Insurance Co photos from all angles, confirm the condition of the 'sections' of the car (mechanicals, body, paint, interior) and supply invoices for major parts / works undertaken.

They then assessed whether we were being reasonable and agreed our figure.

IMHO The important thing is to try to get a figure high enough that will give you a good chance of replacing your car like for like in a sellers market (cos its Murphy's Law that when it gets written off it won't be a buyers market!)

John

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For reference, an agreed valuation does not give a figure that will be paid out in the event of a claim despite what you would think, what with it being an agreed valuation. The insurance company will still offer you the market value of your car or use this value as the basis of agreeing to repair work.

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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Hmmm thats not what they told me :rant:

After my chequered past I wanted to get something which was bomb proof - they told me QUOTE

"The idea of an agreed valuation is to enable us to value the car quickly in a case of a claim. Once the agreed value is met thats what you get becuase the market is so diverse, and their price range will span sometimes significantly - you need to keep the value upto date as well"

I also got told this by competition car insurance when at CAT driver training as they were trying to push their end as well. IMO it's one of the most important things in a clause.

When I was with Hagerty they said the valuation YOU provide (that was free btw) is what they will pay out.

This isn't BS this is what I asked them over the phone and what their operative said in reply to valued agreements.

If what you say is true Bibs, and I dont doubt it isn't knowing lying insurance company barstads, whats the point ?

I haven't renewed my valuation for 2 years now becuase the fee (imo) is a piss take - I know it goes against everything I've said above but tbh it's like servicing to me, I cant be assed paying those little extras for everything.

You can value yourself in which case you have to pay some person who has no idea on Esprits to check your valuation is correct - I asked them "so what if this un-educated individual disagrees ?" they said "You have to go with the insurers value"

So I say "So thats as low as you think you can get away with basically ? So I am paying £15 a year extra premium for nothing really" She couldn't really argue.

Failing that you pay some other bod £15 for the same 'service' (LMAO - sorry but I can value a car, esp if I know the ins and outs and the market in seconds)

Thing is with my car for example and why I drive it a little more carefully than some, is that if I want to replace it a notable proportion of the value is taken up in the magnesium wheels and braking system, which is why the value needs to be agreed and if necessary the premium adjusted.

I think nowadays if I had a crunch I'd just say "not interested, find me another Esprit with that load out and be sharp about it" - interesting as there is a red GT3 on LEW for ~ £16k only issue is then they would have to compensate me or supply me with the wheels and the brakes....no big shakes....Lotus would gladly take....£6-7K off them for that as they have to be new parts...

I've never agreed with the way insurance companies work - they do work sometimes in your favour (I got paid out more than I spent on a claim).

I'm off to have a charles and read my T&C

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And when you do speak to them ask if the policy will allow you to buy the damaged car back in the event of a total write off ( if you wanted to do such a thing...I would be too upset at the prospect). It pays to read the small print. Also if you have a personal plate make sure your policy will allow you to retain it as it will become the property of the insurance company in a total wrte off sceanrio. Private plates can be worth a fortune too!

Though this be madness yet there is method in it ( Polonius in William Shakespeare's Hamlet)

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Also if you have a personal plate make sure your policy will allow you to retain it as it will become the property of the insurance company in a total wrte off sceanrio.

It's still your car until you accept their offer and bank the cheque. Up until that point you can do what you want with it - including plate transfers etc.

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Nope. If they offer you a settlement it's to effectively purchase the car off you. You don't have the right to buy it back at all unfortunately.

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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Let me settle this one.....

You have a legal right to purchase your car back at salvage value in the event it is written off and catagorised as either a 'C' or 'D' (repairable catagories) as well as being paid out the vehicle market value - less the salvage value.

However; if you have a breakers licence you may buy it back regardless of catagory.

I work in the insurance salvage industry.......

www.tcdsalvage.co.uk

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Thats what I thought...

Also, in black/white the T's and C's of Classicline state :

If your policy is 'Agreed Value' the most we will pay is the value of the insured car as stated on the current records held.

If not, the maximum payable will be the market value of the insured car immediatly prior to such loss / damage, which ever is lower but not exceeding the estimated value (ie the one they ask for anyways)

...

Cant really see the point in an agreed value then, it defeats the point in it's basic term ie the value is agreed - it's a con, it's not an agreed value at all, it's a maximum ceiling value, which are........2 completely different things.

So what exactly are you paying £15 for ?

It's not safe guarding your asset, it's simply them making a few quid on the side.

Looks like I'll be changing my insurer.

I wonder if that contravines trade description becuase they're offering a service called an "agreed value" which it clearly isnt, it's an "if you're lucky" value - bad show.

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I could be wrong of course but I believe that the agreed value IS used.

I have a slightly unusual agreed value on the S1 in such that they have said that at auction, the car would be expected to reach a value between two limits.

The amount I pay for the policy is based on the agreed value I want to put on the car within these limits, higher the pay out, higher the premium… a bit like a life insurance policy.

So that’s what they pay out in the event of a total loss.

It is also part of my policy that I have first dibs on buying the salvage unless its scrap only.

So that’s what they say… hope it never comes to trying it out!!

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I guess we are different here in the US.

Agreed Value policies will pay out the amount that is agreed upon at the policy inception if the vehicle is stolen or totaled.

Stated Value policies will pay out as you guys have stated above, the value of the car at the time of loss and usually determined by the "Blue Book" value and not anywhere near what you think it's worth...

Edited by lotus4s

1995 S4s

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OK I need to call the insurer tomorrow - but classicline being my insurer and what I posted before was the terms and conditions I have in black and white.

With them an agreed value is a waste of cash as far as I am concerned, however my old man has the Jag through a different company and they DO payout the agreed value...

This is something to check esp when wasting £15 on a piece of writing thats worth nothing.

Like they know better than me, the owner for the past 5 years, what my car's value is - they've never even seen it.

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  • 3 weeks later...

I didn't see this thread until today.

An agreed value insurance policy is exactly that i.e. it does what it says on the tin.

If a car is written off, stolen, burnt etc and the policy is an agreed valuation then that is what the insurance company will pay out.

If the valuation has not been "agreed" by both parties then any loss will usually be based on the "market value" at the time of loss.

There may be terms and conditions that reduce or even void a payment on agreed valuation policies e.g. if you leave the keys in the ignition and the car is stolen but on the whole they do what you expect.

I analyse the insurance industry for a living

Edited by Bibs
Moved post into appropriate thread.
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Barry - I've pulled your post here, the other thread is about Bond's Essex.

As Jonno pointed out, Classicline's Terms state "If your policy is 'Agreed Value' the most we will pay is the value of the insured car as stated on the current records held."

They don't say "If your policy is 'Agreed Value' we will pay is the value of the insured car as stated on the current records held" which introduces the ambiguity.

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

For forum issues, please contact the Moderators. I will aim to respond to emails/PM's Mon-Fri 9-6 GMT. 

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I fully understand that if they say they won't pay more than an agreed value then they won't - but surely you wouldn't expect them to? If values go up or down it is up to the policyholder to ensure that the valuation is up to date AND is agreed by the insurer in advance of a claim

On the flip side just because they say that they won't pay more it doesn't mean that they will pay less.

Also they can't say that they will always pay the agreed value if the car is stolen/written off etc. As you'd expect, they may not pay the "agreed value" every single time - there will occasionally be, say, cases of fraud/negligence etc etc.

The UK insurance industry is regulated by the FSA and an Agreed Valuation motor insurance policy is quite straight forward and in the vast majority of cases will pay out as you'd expect.

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Bibs is right, its the play on words. Mine is insured at £19K

If I clatter the car tomorrow the way insurance works is you offer £17K and see if you can get away with it. Some people actually believe when you claim the 1st offer is the only offer, and they are fully acceptant that they will never get the true market value of the car.

In which case the insurance company in 1 foul swoop has made £2 grand (or 6 years of policy iun my case) from me. They ALL try it on - the whole point of insruance is to give out less than you take in...

I had to explain this to a room of police officers once....just to show how ignorant people are of insurance. One of them had a write off and was complaining the offer was about £3,800 when the car was clearly worth £5,000 - few phone calls later explaining to the insurance comapny that I knew what I was talking about and am not a complete idiot and we got the guy upto £4,800 (value - excess).

I've yet to talk to Classic line over this.

My GTi and GT2 are insured through them on a non-agreed value, the GT3 is agreed.

Main reason is I haven't called yet is the GTi faile the MOT, the GT2 is incapacitated becuase of the steering column (now sorted by Brain at Lotus) and the GT3 has one of it's pods off (ouch) so none of the 3 cars are road worthy and are actually un-taxed at the moment so insurance isn't at the top of the bill !

When I remember to call them I will ask for clarification - however their terms and conditions which you agree to when you sign the dotted line and pay the bill are quite clear - however I still think there is a clause under the trades desciption act here (I'm not a lawyer, really I'm not lol).

My advice, and I only give it becuase insurance companys are on the large cretins and deserve to be held to account, is to check the small print and ask.

If I had an agreed value and found out they payout was less than expected I would be hopping mad to say the least.

In the past I've not had much faith in organisations such as the insurance ombudsman and the FSA, in my experience they are lions without any teeth and I know too many people who get shafted by insurance, i've always found the best defence against it is to arm yourself with knowledge.

Look at Jame's SE when it got rear ended by a hit and run - Zenith paid him about £7 grand for a pretty sorted SE turbo.......please.....

He argued and argued with them and they dug their heels in and through no fault of his own lost out on what he was legally entitled to - all because the authorities bent over and didn't work for him (pretty sure thats how it happened, long time ago)

As you might tell - I dont trust insurance companys as far as I could throw one.

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We're in danger of getting confused here between policies valued on an Agreed basis and those on market value.

Market value - if you're asked what you think it's worth it does not mean that the car is insured for that amount. At the time of loss the insurance company will make an offer which may well be worth less than you think it should be (NEVER ACCEPT THE FIRST OFFER). Yes they try to get away with paying as less as they can so it's up to you to prove that the car is worth more than they have offered. You do this by showing adverts (although they are only asking prices/Essex 007??) to help build a case as to why the car is worth more than they think.

I've worked in claims depts and yes it is a bit of a game to get away with as low a settlement as possible SO BE AWARE

Agreed Value - as per my previous posts. For a classic car this is undoubtedly the way to go. Once a valuation has been agreed and accepted by an insurance company it will be the payout in the event of a total loss (less any excess). The full payment should be made unless in the exceptional cases fraud/keys in ignition/not left ungaraged when you agreed it would be etc etc. Not unreasonable as nobody wants to pay for fraudsters or idiots.

If you think that insurers are rip off merchants I'd say that since 1972 in only 2 years has the UK motor insurance industry made a profit from underwriting risks. In 2009 for every £1 in the front door it lost £1.15p in claims etc. This is why motor rates are increasing 30% pa currently - they still won't make any money..

It could well be argued that the UK motor insurance industry should apply for charitable status given the money that it has given away and not made in profit.

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they still won't make any money

My heart bleeds :rofl:

Sorry you wont get any sympathy out of me - they are in business, if they run it at a loss thats their own fault, they should base their policies accordingly.

If I sign a contract saying if I pay £x I get this service then I will hold them to that service through hell and high water - I doubt many insurance companies make a loss either.

http://www.dailyfinance.co.uk/2010/08/25/admiral-profits-fortis-makes-excuses/

Too many insurance companys con their customers out of cash when making a claim - for that reason (same as the government) they are fair game to me.

Some of the lads in the Army I work with pay £3000 a year to insure their £400 cars, which is why the reakon 1 in 10 drivers are not insured.

The fact remains if you get an agreed value, check exactly what that means in the T&C - here today gone tomorrow Dorris on the other end of the phone is just going to tell you what you want to hear.

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Jonathan

I'm not defending insurers - you're right they only have themselves to blame if they lose money.

The UK motor insurance industry is however loss making. Fact. I could prove it to you but that's my day job and this is meant to be fun.

http://www.guardian.co.uk/business/2010/aug/05/aviva-insurance-premiums-soar

I agree with you that anybody with an agreed valuation policy should check that it is what they want and make sure that they understand it - the same goes for all insurance policies.

Edited by Bazza 907
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