Agreed Value Car Insurance
Your car is likely to be one of the most valuable assets you own, so it’s imperative to ensure that it’s properly insured, in order to protect the car and to ensure that you’re abiding by the law by having a proper car insurance policy in place.
If you have a special vehicle, one type of car insurance you might want to consider is agreed value classic car insurance. In our guide below, we explain what guaranteed value car insurance is, how it works and who it’s useful for.
What is agreed value car insurance?
In the simplest terms, agreed value car insurance means that you will get compensated for the amount of money that your car is actually worth if it’s more than the market value of similar cars.
This means you and your car insurance provider will determine the proper value of your car in order to find an appropriate policy. This type of car insurance covers you for the difference between the agreed value of your car and the loss of payment that you receive in the event that you have to write off your car.
It’s a guaranteed valuation, so if your car is involved in an accident and it is written off, your agreed value car insurance policy will cover you in the event that your car is completely totalled. However, the payments will be minus the voluntary excess, plus any other miscellaneous costs associated with your policy.
How to find an agreed value car insurance provider
Unfortunately, agreed value car insurance policies can be difficult to come by and according to research carried out by GoCompare, only 2% of 344 comprehensive car insurance providers offer agreed value car insurance.
While it’s not impossible to get this type of policy in its entirety on its own, you may have to look into combined policies where you purchase standard car insurance cover and then you may have to buy agreed value car insurance as an extra add-on.
The best way to find this type of car insurance policy is to shop around and compare quotes from different providers.
Once you do find a provider who offers agreed value car insurance, you will have to apply for a policy just like a normal car insurance policy.
How do insurance companies value your car in the UK?
Agreed value car insurance works by you working with the insurer to determine the value of your vehicle. This involves getting a car insurance valuation from your provider where you’ll have to provide evidence of the value of your car. The exact type of evidence that you’ll need to provide to the car insurer will vary between different providers, but you can usually expect to have to provide evidence in the form of:
- Photos and videos of your car - your car insurance provider may insist that you need to take a certain number of pictures of your car, including the interior and exterior as well as some photos of the engine in some cases.
- Evidence of invoices and bills of any recent work that has been completed on the vehicle - this will show the insurer how much money you’ve invested in the car which will help to reflect its true value.
- A valuation certificate from an independent expert who specialises in vehicle valuations - you will likely have to pay for the inspection to be carried out, but this will help you to show your insurer how much a professional thinks your car is worth.
Which cars are covered with agreed value car insurance?
The types of cars that are covered by guaranteed value car insurance policies vary depending on the insurance provider, but most insurers will cover the following types of vehicles under an agreed value policy:
- American cars
- Classic cars
- Modified vehicles
- Modern classic cars
- Performance cars
- Kit cars
How much is agreed value car insurance?
Again, the cost of agreed value policies varies depending on the individual provider, but you can usually expect these types of car insurance policies to be more expensive than other types of car insurance.
This is because they’re not as common as “normal” car insurance policies, so any insurer who does offer this type of policy can charge a premium for them as there is less competition so they’re able to charge pretty much whatever they want.
One option is to choose a basic car insurance policy and then add an agreed value extra to your policy if you’re struggling to find an insurer who will offer you an agreed value-only policy. However, this doesn’t necessarily mean that the policy will be cheaper and if anything, it will drive the cost of your basic insurance policy up as well.
Of course, as with any type of insurance policy, there are several ways to try and obtain a cheaper car insurance policy for agreed value cover.
- Build up your no claims discount
- Try to reduce the number of miles you drive
- Opt for a cheaper car to insure (this might not be possible if you’re insuring a special car on an agreed value policy)
- Add a named driver to your policy
- Shop around for the best quotes from different providers
It’s also a good idea to remember that just because you have a classic car or a modified vehicle, it doesn’t mean that you have to take out agreed value car insurance. You can still get normal car insurance for your vehicle even if it falls into one of the “special” categories.
Gap car valuation insurance is usually an alternative to agreed value car insurance and this type of policy works by covering the difference between the amount your car insurer will have to pay in the event that your car is written off and the value of your car when you first bought it. This type of policy could work out cheaper than guaranteed value car insurance, so it’s worth checking quotes from providers for both types of policy.
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