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Originally posted by RS2000CUSTOM
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Found this on the Insurance Ombudsman website
Seems they get lots of "Valuation" complaints
64/04
motor vehicle insurance – dispute over insurer’s valuation – classic car insured on ‘agreed value’ basis
When Mr H bought a classic car, he took out a motor insurance policy on an ‘agreed value’ basis rather than on the more usual ‘market value’ basis.
Such policies are generally taken out only by owners of classic or particularly valuable cars, where the value is unlikely to depreciate substantially – if at all.
The value of the vehicle is agreed in advance and insurer is then obliged to pay that amount if the car is lost or damaged beyond reasonable repair. However, the insurer is not obliged to pay for the replacement cost of the vehicle.
Mr H agreed the value of his classic car under this policy was £2,500. Unfortunately, the car was badly damaged when Mr H was involved in an accident. The insurer took the view that it would cost more than £2,500 to remedy the damage, so it offered him £2,500, in settlement of the claim.
Mr H thought that this figure was far too low. He told the insurer that, bearing in mind the good condition of the car before the accident, it would cost between £4,000 and £5,000 to replace. He therefore wanted the insurer to pay that amount.
complaint not upheld
We noted that Mr H had renewed his annual policy twice – on the 'agreed value' basis – before the claim in question. The policy terms, which had been clearly stated in the policy documents, said that Mr H was entitled to receive the ‘agreed value’ of the car – not the cost of replacing it. So we told him we could not uphold his complaint
Seems they get lots of "Valuation" complaints
64/04
motor vehicle insurance – dispute over insurer’s valuation – classic car insured on ‘agreed value’ basis
When Mr H bought a classic car, he took out a motor insurance policy on an ‘agreed value’ basis rather than on the more usual ‘market value’ basis.
Such policies are generally taken out only by owners of classic or particularly valuable cars, where the value is unlikely to depreciate substantially – if at all.
The value of the vehicle is agreed in advance and insurer is then obliged to pay that amount if the car is lost or damaged beyond reasonable repair. However, the insurer is not obliged to pay for the replacement cost of the vehicle.
Mr H agreed the value of his classic car under this policy was £2,500. Unfortunately, the car was badly damaged when Mr H was involved in an accident. The insurer took the view that it would cost more than £2,500 to remedy the damage, so it offered him £2,500, in settlement of the claim.
Mr H thought that this figure was far too low. He told the insurer that, bearing in mind the good condition of the car before the accident, it would cost between £4,000 and £5,000 to replace. He therefore wanted the insurer to pay that amount.
complaint not upheld
We noted that Mr H had renewed his annual policy twice – on the 'agreed value' basis – before the claim in question. The policy terms, which had been clearly stated in the policy documents, said that Mr H was entitled to receive the ‘agreed value’ of the car – not the cost of replacing it. So we told him we could not uphold his complaint
, can you not ask Escort-Tec for a estimate of repairs to do the roof and submit this to AON, as they have done this before I'm sure they could give you a very good/true price of what the repair will be
and it looks like it will be a cash in lieu settlement and i keep the car so i will see what the offer is
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