Just before you go around looking for classic car insurance policies, you may first want to know the actual selling value of your car. The charges that can be incurred by these insurance policies that are only dedicated to classic cars are usually determined by the sum that’s declared or insured.
But bear in mind that your opinion about the value of your car may not always be acceptable for each company on your list. So how exactly can you value a classic car for insurance reasons?
You’ll be put in a much difficult situation if you’re vouching for a vintage or historical cars since they are usually worth a fortune but not very usable. But with classic cars, you’ll be fine. Usually, a vehicle’s true value is determined by the present trends in market values. You will be paid according to the market trends for car values, it is generally an annual depreciating value for all vehicles.
Unfortunately, there are no reliable guides for classic cars, especially when a classic gets totaled due to an accident. It is not always likely that a car owner is aware of the actual value of a classic before they purchase it. This also applies to an insurance policy that calculates the price of a classic for safety. An insurer will also have to pay attention to repair costs if there would be any. This is included in the pricing of the classic car as well. To avoid unreasonable overpricing, there are classic car insurers that devise an Agreed Valuation policy.
The purpose of this policy is that if you file a total loss claim wherein the classic car is impossible to just be repaired, the company that’s underwriting for it will make sure to pay you with the claim in full in accordance to the market value of a classic. If the car’s value changes anytime depending on market trends, make sure to notify your insurance company about it, and they will then schedule for a revaluation. There are some specialist car insurers who cater to valuation services, and it covers their basic policies. This may charge you with a small fee but nothing else.
If your insurer finds it difficult to place a good value for your car, then it would be best to get hold of a policy wherein agreed valuations are covered. This is usually part of a plan to steer clear of future problems with your insurance provider in the future. You will be issued with an Agreed Valuations Certificate by your insurance company. Carefully check with your certificate first for any discrepancies if you wish to change your classic car insurance.