Agreed value no longer just for classic cars
Posted on 29-10-2014
A new agreed value insurance policy for modern vehicles will make haggling with insurers over claims payouts a thing of the past.
While agreed value insurance has long been common with classic cars, the owners of newer vehicles have had to settle for policies that pay out the “market value” of their vehicle in the event of a total loss.
But a new policy from Adrian Flux, the UK’s largest specialist insurance broker, provides an agreed, guaranteed value for any vehicle over 12 months old worth up to £250,000.
Cover is available on private cars, commercial vehicles, motor homes, and motorcycles via Flux’s Bikesure brand.
Gerry Bucke, general manager at Flux, said the policy would give the owners of more modern vehicles the peace of mind enjoyed by classic car enthusiasts for decades.
Premiums start at £25, with comprehensive cover for an agreed value of £20,000 priced at £39 payable in addition to the standard insurance cover.
“Customers often think that the value they provide when they take their policy out is what they would get paid in the event of a total loss,” said Mr Bucke.
“But insurers will judge their payout on the amount the vehicle could be sold for on the open market at the time of the claim, which can sometimes be lower than the amount the customer paid for the vehicle or believes it is worth.
“This new cover, at an affordable cost, guarantees the level of the payout and means claims should be settled faster and with the minimum of fuss.”
The agreed value is updated at renewal each year, and remains the same throughout the following 12 months, regardless of how many miles the vehicle covers.