Why is insurance for classic cars different?
Regular car insurers either provide cover on a new for old or market value basis. Classic cars on the other hand, have both tangible and intangible assets which add value to the vehicle. For example, you’d expect a car with fully functioning original features to be worth more than one where some of the features have been broken or replaced. Equally, a car once driven by someone famous or with an interesting history should demand a higher price. Classic cars are therefore more accurately insured on an ‘Agreed Value’ basis.
What does agreed value mean?
Agreed value is a term used for when the insurer and insured agree on a unique value for an item rather going by the cost of an equivalent as new (new for old) or the current cost (market value). Agreeing a value means looking at other factors which can affect the vehicles price tag; these can be both tangible and intangible. When insuring a classic car this takes into account aspects such as concourse, awards, history of the vehicle and prestige (e.g. first off the production line, special edition etc.).
Why is agreed value important?
If your classic car were written off in an accident, you'd want to ensure you could get a replacement. By taking into account the true cost of replacing your classic car, you're ensuring that if the worst happens, you have enough cover in place to get yourself back on the road in something just as classy.
If you need to find Triumph classic car insurance you can get a quote online through our partners at Footman James.