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tonym
United Kingdom
653 Posts |
 Posted - 21/08/2012 : 16:18:18
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Cautionary Tale.
A friend with a pre-war [non MMM] car recently, in all the appaling weather managed to aquaplane his car off the road and into a tree - or something similar.
The cost of restoring the car is estimated to be in the region of three times its insured value. As a result the car will probably be a write off. Sadly one less on the roads.
Another friend, with a similar car, who, when told if this admitted that his car was woefully under insured - by about 75% !
Car insurance is the opposite to house insurance. With a house you insure for its rebuilding cost - which is usually less than what it costs to buy another similar one. With an old car you should be insuring for a total rebuild cost not what another similar would cost retail.
Are you adequatly insured ??
Think on.
Tony |
Edited by - tonym on 21/08/2012 16:18:48 |
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Wyn Lewis
United Kingdom
153 Posts |
Posted - 21/08/2012 : 16:35:55
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You have to get the Insurance Company to accept your valuation (even if based on rebuild cost), it has to be reasonable in their eyes. They will not accept any inflated (in their view) valuation. I'm grossly underinsured on what I've spent to date. When I had a TR5, Towergate had a policy where the rebuild payout would be 125% of the insured value (or thereabouts, I can't remember exactly) for a small increase in premium. We all opted for it.
Wyn |
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AlanD
Australia
29 Posts |
Posted - 22/08/2012 : 08:53:59
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Not sure what the insurance rules are in the UK but here in Oz the biggest classic car insurer will pay out a "total write-off" and you get to keep the wreck. Hence if you wish to rebuild the body on a sound chassis, if recoverable, you still can.
Alan Davenport |
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Keith Wallace
United Kingdom
367 Posts |
Posted - 22/08/2012 : 09:56:16
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I had always understood that the insurance company would pay compansation to the value of a car in a simular condition, not the rebuild costs, as they would difficault to know, untill the rebuild had been completed.
Normally you would need a good few years of inflation, before the full rebuild costs of a classic car could be realized in a sale.
Keith Wallace |
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Colin Butchers
United Kingdom
1487 Posts |
Posted - 22/08/2012 : 10:21:31
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Tony M,
In a "write-off" situation, most insurers will be prepared to sell you the wreckage at a reasonable price, to enable you to do what you want with the car i.e. to rebuild or to break for spares.
They normally have an "in-house" arrangement for the eisposal of written-off vehicles, but this is aimed to cater for the tin-box type of car and they wil normally be quite keen to enable a classic car to be saved.
Colin B. |
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