Agreed Valuation FAQ

One of the benefits we're proud to offer our classic vehicle insurance customers is a two-year Agreed Valuation. But what exactly does this service entail? And how is it calculated? Read on as we dig deep into the mechanics and benefits of the Agreed Valuation through Lancaster.

What is an Agreed Valuation?

An Agreed Valuation is a figure, agreed between yourself and your insurer, that's placed on the value of your car. Leading on from this, it's also (if you decide to go with this option) the amount that your insurer will pay you in the event that the vehicle is written off or stolen.

What's important is that, in the event of loss or irremediable damage to the car, your insurer will pay you this predetermined sum, rather than the average market value for a car of the same model and age as yours. An Agreed Valuation can be particularly advantageous, then, if your car is worth more than a typical car of its type and age.

And that is often the case with classic cars, which tend to be lovingly maintained, and to have held or even increased their value over the years. They may have had some expensive restoration work that makes them worth more than a typical specimen of their type. Or they may have a superb or even famous history that might affect the price.

In short, if you love and look after your classic, and it's therefore more valuable than most cars of its kind and age, an Agreed Valuation should make a lot of sense for you.

What are the benefits of an Agreed Valuation?

As explained above, a valuation like this can be a real benefit when it comes to making a claim. If your car is damaged, lost or stolen and you have an Agreed Valuation in place, your insurer will pay out the sum that's been agreed with you – minus any excess that you've added to the policy.

What's more, if it turns out that the vehicle’s condition has been inaccurately described (either deliberately or inadvertently) in a way that seriously affects its value, Lancaster Insurance Services can dispute the agreed value.

Other benefits include being able to set an asking price if you want to sell your vehicle at a later date. If a buyer queries your asking price, or wants to bring it down by a substantial slice, you can use your current valuation as evidence of the car's worth.

Here at Lancaster, we offer a up to a Two Year Agreed Valuation – meaning that, when you renew your insurance after the first year, the value remains locked in. However, if you do want the sum looked at again (perhaps you've done further work on the car in the interim), all you need to do is speak to one of our agents when you next come to renew your classic motor insurance.

How does it work?

Arranging a valuation is pretty straightforward, and can be done through our bespoke online portal. You'll be directed to an online form, where you'll be asked a series of questions about both yourself and the vehicle in question.

You'll also be asked for at least six colour photographs of the vehicle. These should have been taken within the last couple of months and should include shots of the vehicle's interior, engine bay, and no fewer than four pictures of the outside of the car. You can send us more than six pictures if you wish.

That's the minimum of information that we will require to calculate the valuation. However, you can upload further information to support your application, if you have it. This could include invoices for work carried out on the car, or receipts for purchases towards its restoration and maintenance. Just be aware that these works or purchases all have to have been carried out within the past three years.

You can send us photocopies of these documents, rather than the originals – as long as you are later able to supply the latter in the event of a claim.

Next, our chosen independent classic car expert will apply a value to the vehicle. It's important to us that the classic car expert we use is independent, and is not a vehicle dealer or restorer.

We will then send you a certificate confirming the valuation. The number of years that sum will be valid for, will be detailed on the certificate the maximum length they can offer is up to two years.

How much does it cost?

All of our classic car insurance policies can be extended to include an Agreed Valuation, for just £18 per year. That fee remains the same, whatever your annual premium comes to.

How can I make sure I get a fair valuation?

Good question! There are some key things you can do to make sure that your classic is given a fair price by our expert. Here are a few top tips:

1. Keep your car in tip-top condition

This goes without saying, but it's always worth remembering: the better the condition in which you keep your classic, the higher the value that our independent expert will be able to place on it.

Of course the engine, bodywork and interior must be in the best possible condition – but so must other features such as the wiring, paint job, tyres and any chrome detailing. Each little feature, if in good condition, will add a little value to your classic; conversely, any flaws, damage or blemishes may reduce it.

We know that most classic car owners love to look after their vehicles, lavishing care and attention on them and keeping them in sparkling condition. This is just another incentive – should you need one – to keep up all that TLC!

2. Take care over modifications and updates

When it comes to modifying or updating a classic car, the situation is quite complicated.

For example, many classic car enthusiasts get a lot of pleasure from buying tired old vehicles, spending time and money on their restoration, and selling them on at a profit that reflects all that work and expense. But it’s worth remembering that the cost of the restoration work you’ve put into your vehicle will not necessarily be reflected in the valuation.

Some modifications might be deemed to add value to a car; others, because they are not in keeping with the car's original styling, may actually diminish its value. Alternatively, these measures may increase the car's worth – but by a small amount that doesn't reflect the sum that you spent having the modifications made.

However, some of these updates – such as more modern safety features, for example – may be necessary to carry out, particularly if you are using the classic as a daily driver.

So, how can you be clear on whether or not to make a particular modification or update to your classic? A good place to find some answers will be the relevant car club for your classic. From the Porsche 928 Owners' Club to the Maestro & Montego Owners' Club, there are a huge range of classic car clubs in operation around the UK, catering to most of the classic and vintage vehicles still around in decent numbers.

It's a great idea to join the right owners' club for your vehicle (we've discussed a few more elsewhere on our blog), as membership will open you up to a whole world of expertise and help sourcing parts – as well as likely members' discounts on your classic car insurance policy.
You should also be able to ask fellow members for their advice on carrying out a particular modification or update, and how it might affect your car's value going forward.

3. Look after the engine

Of course, what we all zoom in on first when we look at a classic car is that beautiful exterior – whether it's the graceful, flowing lines of a Jaguar E-Type, the wedge-shaped futurism of a Lotus Esprit or the boxy '80s functionality of the Austin Metro. Less visible, but equally crucial to a classic's value, is the state of its engine and running gear.

For a classic to really command the sort of value that its looks and prestige suggest, it needs to be in great condition mechanically. The engine should make just the right smooth, purring noise, without any jarring notes. All the parts, from the head gasket to the intake manifold, should be doing their job perfectly.
Looking after your engine with regular services will really help you when it comes to valuation time. Keep a record of these services, too. Which brings us on to…

4. Keep all your paperwork

We're always reminding our clients to keep hold of all documentation relating to any repairs, routine maintenance, or restoration work they've had carried out on their classic. Why is this so important?

Well, when it comes to getting your car valued (or even, one day, sold), paperwork proving that the work has been done by competent, quality-assured professionals will significantly add to its value. Essentially, the car will be worth more if the work's been done to a high standard, than by a less reputable firm (or you, in your own garage, whatever your talents may be!). So keep the paperwork – quotes, invoices and so on – to prove it!

In a similar way, keep a firm grip on any evidence you have about the vehicle's history. As you'll probably know yourself, classic car enthusiasts love to hear the back story of a car – it all adds to the sense of provenance and history surrounding the vehicle. As classic car fans, we are all interested in keeping the past alive – and the more detail and colour we can fill in about a car's past, the more we love it! So keep hold of anything that shows who once owned the car, and in particular details of any awards or competitions it may have won.

5. Keep those miles low(ish)

When it comes to buying a used modern car, the number of miles on the clock are crucial to its value. And the same holds true, of course, for classic cars.

On the one hand, we recognise the temptation to take your beloved classic out for a spin whenever you can. And yes, we would be the first to agree that part of the pleasure of owning a classic is to put it through its paces on your favourite twisty back road every now and again.

However, if you can keep those miles to a minimum, this will definitely help when it comes to valuation time. Not only will you keep the mileage down, you will reduce the risk of any scrapes or general wear and tear that will bring down the car's market value. You could even qualify for limited mileage discounts on your classic car insurance premium.

The value of my vehicle has changed. What now?

As we noted above, you don't need to think of the Agreed Valuation as something set in stone. If something happens to the vehicle that changes its value, either for the better or worse, simply get in contact with us and we’ll send you a new application form where you can update the information about the car.

Just be aware that there will be a small charge for this new valuation – and that the changes may also affect your annual insurance premium.

If we haven't issued your car with an Agreed Valuation certificate, the total loss claim that we pay out will be based on the current market value of your vehicle.

How do I arrange my two-year Agreed Valuation?

It couldn't be simpler. To arrange a valuation with Lancaster, or simply to find out more, give us a call on 01480 484806.

As Dave Youngs, Car Club Manager at Lancaster Insurance explains: “We’ve introduced our two-year Agreed Valuation option to give our customers wider choice. Enthusiasts put a lot of time, passion and dedication into their classics, so having an agreed value in place is vital to know that they will get the true value should the worst happen.”

Lancaster Insurance: other benefits, at a glance

The two-year Agreed Valuation isn't the only benefit that we can offer with our classic car insurance policies. Other advantages include:

• Car club member discounts up to 25%
• Static show cover
• Choice of repairer
• Salvage retention
• Laid-up cover

Contact us today to arrange vintage car insurance for your vintage vehicle.

Policy benefits, features and discounts offered may very between insurance schemes or cover selected and are subject to underwriting criteria. Information contained within this article is accurate at the time of publishing but may be subject to change.