New
auto-scrappage categories for classic cars
How do I get a
valuation for an agreed value insurance policy renewal?
See our NEWS item
in April 2016. More
Insurance
salvage rights for classic car policyholders
See our article released in
December 2012 on this topic. More
Classic
Car Weekly is out on the stands at newsagents every Wednesday and carries
many topical items of interest to classic car enthusiasts together with product
reviews and features. Well worth buying a copy and judging for yourself.
What
is the FBHVC?
The aim of the Federation of British Historic Vehicle Clubs(FBHVC)
is to uphold the freedom to use historic vehicles on the roads without any undue
restriction and to support its member organisations in whatever way it can. FBHVC
website
Posted: 170628 | 
 | In
a lead article in this week's issue of the popular Classic Car Weekly they report
"the insurance write-off categories will change from 1st October 2017
in a bid to keep dangerous crash-damaged cars off the road. The Federation of
British Historic Vehicle Clubs (FBHVC) is urging owners of classic vehicles to
make sure that their insurance policy stipulates that if their vehicle is damaged,
the vehicle will fall outside the remit of the new Code of Practice". The
Association of British Insurers (ABI) coordinates the code and "says the
categories are changing so there is greater focus on the condition of the vehicle,
rather than the repair costs. It's hope this will put | an
end to scrap cars being
put back on the road".
The concerns of classic car owners are reflected in the views
of the FBHVC who are reported as expressing worries over "the
importance placed on the cost of repairs in the decision as
to which scrappage category is to be allocated for an historic
vehicle because for for cherished vehicles this criterion would
often be inappropriate. In these cases the owner might wish
to effect the repair of the vehicle regardless of cost. The
participants in the Code of Practice accepted this, subject
only to considerations of safety and health. Thanks to the FBHVC
a paragraph is included in the Code of Practice saying: "It
is recognised that some historic/classic
vehicles or vehicles of special interest may be repaired irrespective
of the extent of the damage, providing it is safe to do so.
In these cases the vehicle will fall outside the Code of Practice
which will not apply." The key work here is "some".
It might be that if a car worth £4,000 costs £6,000
to repair, then the repair might be seen as worth it in the
eyes of the owner. But it likely the scrappage buy-back arrangements
included in many classic car policies might apply where
the cost of repairs exceed the agreed value in the policy and
amount payable in respect of a claim accepted by the insurer.
Concerns over scrappage buyback
The concerns over the scrappage buyback terms seen in
many classic car policies will also be a matter many classic
car enthusiasts will need to consider carefully. In most cases
an agreed value relates to the market value of the car whereas
the cost of a major rebuild after a serious accident and insurance
claim can be considerably greater. However the scrappage rights
are important for classic car owners because in cases where
the insurer makes a full payout equal to the agreed value but
an owner wants to rebuild the car, then the owner has to be
able to get possession of the scrappage to be able to rebuild
the car. So classic car policies that have terms where upon
a full payout by the insurer the ownership of the scrappage
then passes to the insurer, it is essential there are terms
in the policy enabling the policyholder and owner of the vehicle
to buy back the scrappage! We are in touch with a leading classic
car insurance broker for clarification of how these matters
are covered in their agreed value policies.
Updates
Any news will be released here
as an update as it becomes available.
|
|
