Lotus Elan

Retention of salvage UK classic car insurance

PostPost by: AHM » Mon Sep 08, 2014 9:57 am

Exactly as Chancer says - Don't part with anything, documents keys etc. It will be the last you see of it.
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PostPost by: Spyder fan » Thu Dec 11, 2014 6:48 pm

I thought I would just bump this topic because today I renewed my multi car insurance with RH Classic for ?286. That's for my S4 with an agreed value of ?52,000 and my +2 with an agreed value of ?28,000, unlimited mileage on both and of course retention of salvage, legal protection and European breakdown cover.

I often cover more than 3000 miles a year in either car hence unlimited miles because their threshold for discount for limited mileage is 3000 miles, otherwise it would have been a bit cheaper!

Not only is retention of salvage the sensible thing to get, RH Classics appear to be the best value providers, just don't forget to have a Club Lotus valuation, you don't need to be a member, just the owner of a ?10 note and a few good photos of your pride and joy.
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PostPost by: Elanconvert » Thu Dec 11, 2014 7:32 pm

interesting........your s4 twice as valuable as mine!!!!!

I did query this 'retention of salvage' thing with my insurers, and they were adamant that the value of any salvage would be deducted from any payout for a total loss [written off].......
they would be happy for me to retain the salvage in such a case, as long as it was made clear at the time of making a claim. they were sure that all insurance companies would be the same....
are RH any different?

:D fred
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PostPost by: Spyder fan » Thu Dec 11, 2014 8:20 pm

Hi Fred,
You need to read the first page of messages for the answers to your questions. have a look here first http://www.rhclassicinsurance.co.uk/cla ... rance.html

RH will insure your car for an agreed value, if your car is written off you will get the agreed value AND the wreck of the car, its called a retention of salvage clause, don't accept anything else.
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PostPost by: Chancer » Thu Dec 11, 2014 9:25 pm

That sounds like a great deal to me and I have been away for 10 years so am judging it on prices back then so its even better.

That retention of salvage option really is the icing on the cake and continuing in the same vein, if the worst does happen you really can have your cake and eat it :lol:

TBH, that is what retention of salvage should be its just all the other companies are robbing barstewards, you insure the car for say ?30K, its wriitten off, you keep the salvage but have to pay ?10K.

Or look at it another way if you dont keep the salvage they pay you ?30K (if you are Lucky) then get back ?10K from the sale of the salvage, you are paying to insure ?30K but they are only insuring a risk of ?20K.

I have bought a lot of salvage vehicles in the past to repair, not my own wrecks although a couple were, the salvage buyers dont have any say in the matter, they are tied into an agreement where they pay a fixed percentage of the insured value according to the category of the wreck, as soon as an accident happens they trundle off and collect the vehicle, steal everything thats Inside it and after the claim is settled they have to pay the 5, 10, 20 or 30% according to its category wherupon they either break it or sell it on.

Overall they dont lose but on a vehicle like the modified S4 were Alan not to claim the salvage (I'm assuming another insurer here) they would probably struggle to sell it for the 30% they may have had to pay for it, its swings and roundabouts and overall they do well out of it.

I bought a wrecked Caterham as salvage, I was expecting to pay 30% of about ?7K but as it had agreed value due to the mods which whilst they cost a lot didnt really add significant value (it was a Zetec conversion in the very early days) I ended up having to pay ?4K, I know the dealer really well and he was as shocked as I was, he queried it with them and then we found out about the agreed value, it was marginal but I really wanted it, on my next purchase we managed to get the vehicle reclassified to get a lower price.
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PostPost by: Spyder fan » Fri Dec 12, 2014 7:59 am

I should add that my S4 is insured for ?52,000 because it's pretty unique and that's roughly the figure required to build another one just like it should the car become a total loss due to being stolen and not recovered or really totally destroyed by fire.

If my +2 was a total loss I would be able to get another like for like Zetec converted car for ?28,000 there are a few around and it would just take a bit of patience.
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PostPost by: Elanconvert » Fri Dec 12, 2014 9:09 am

Spyder fan wrote:Hi Fred,
You need to read the first page of messages for the answers to your questions. have a look here first http://www.rhclassicinsurance.co.uk/cla ... rance.html

RH will insure your car for an agreed value, if your car is written off you will get the agreed value AND the wreck of the car, its called a retention of salvage clause, don't accept anything else.


well, thanks for that info.....I will certainly give RH a ring when my insurance is due..............even if they are not the cheapest, it would seem that they are covering MORE, i.e. the value of the car as a running vehicle, AND the value of the wreck!!!

:D fred :D
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PostPost by: jimj » Fri Dec 12, 2014 10:49 am

I`m intrigued, like most people I have an agreed value but I wonder what would happen if the agreed value, even though "agreed" could be shown to be much more than the market value, in the event of a total loss. Has anyone ever had any trouble with an agreed value total loss claim?
Setting aside stories of insurance companies being less than generous, surely they would be perfectly correct in refuting a claim where they could easily demonstrate that a value, though previously agreed, was considerably more than it`s actual market value. Anyone?
Jim
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PostPost by: Spyder fan » Fri Dec 12, 2014 11:19 am

Hi Jim,
That's a good reason to have a proper Club Lotus valuation on a regular yearly basis. Alan Morgan will back you to the hilt if he has produced a valuation for your car and you have given this to your insurance company as proof of value.

All the major classic insurance companies recognise Club Lotus valuations. I have them for both cars, Alan Morgan takes into account market trends and advice from trusted bodies such as Paul Matty (who also produces Club Lotus valuations), he will also research one off specials like my S4 to calculate it's replacement cost minus depreciation.

Classic insurance companies generally allow agreed value below ?15,000 without third party proof of value, just a few photo's and a mileage statement is all that's needed. Above ?15,000 they ask for a recognised valuation from an organisation that didn't supply the vehicle before agreeing the value, hence Club Lotus valuation required as far as we are concerned.

Once a valuation is "agreed" there should be no argument when it comes to pay out time.

Everyone should check their insurance documents carefully to ensure that the value of the vehicle is the "Agreed Value" as sometimes there can be an asterisk or two next to the "stated value" that goes to a clause that refers to "Market Value".

Insurance companies have seen all the dodges and scams and know when somebody is trying it on, just make sure you have all the correct details and are backed by Club Lotus.

Okay Mr Morgan.... advert over... can I have my ?5 now? :mrgreen:
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PostPost by: Elanconvert » Fri Dec 12, 2014 12:12 pm

Spyder fan wrote:Classic insurance companies generally allow agreed value below ?15,000 without third party proof of value, just a few photo's and a mileage statement is all that's needed. Above ?15,000 they ask for a recognised valuation from an organisation that didn't supply the vehicle before agreeing the value, hence Club Lotus valuation required as far as we are concerned.

:


well, my insurance company [lancaster] were happy to rely on half a dozen photos from me to agree a valuation of ?24,000.. .................
how do club lotus arrive at valuations?
presumably ?10 wouldn't cover the cost of a physical inspection?

:D fred :D
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PostPost by: Spyder fan » Fri Dec 12, 2014 12:31 pm

Hi Fred,
?10 will indeed cover a physical inspection if you go to Paul Matty or attend any of the Club Lotus events where Alan Morgan is present.

Otherwise send decent photo's of all sides including insides (boot & under bonnet) as well as a copy of the V5 and the present mileage & MOT certificate to Club Lotus.

I see that Lancaster offer agreed value for a ?15 fee and you have to send them the photo's and fill out a form and they then issue a certificate....... What did you base your agreed value on?

Club Lotus along with Paul Matty and others have vast ongoing experience as to the value of our cars, this is based on private sales, sales by auction, showroom sales, cost of repairs, cost of rare parts.

BTW I can't see any retention of salvage mentioned in Lancasters blurb?
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PostPost by: Elanconvert » Fri Dec 12, 2014 3:07 pm

alan
the 'agreed valuation' was my estimate after looking at recent sales, asking prices, etc. of similar spec. cars
which lancaster agreed with.......it might now be a bit low if yours is a guide!!! :wink:

the relevant section of the policy doc. reads;

In some circumstances it may be possible for you to retain the salvage of the vehicle. If this is your
requirement, please make us aware as soon as possible when making a claim. If this is agreed, a deduction
is likely on the value of any claim payment. Please also make sure that you act in accordance with the
current relevant legislation.



clearly quite different from RH......just wondering if I would have grounds for a complaint, i.e. that they told me porkies when they said 'all insurance companies are the same' [regarding retention of salvage]....

:D fred :D
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1970 S4 dhc big valve
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1959 lotus elite type 14
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PostPost by: Spyder fan » Fri Dec 12, 2014 4:17 pm

I haven't found any other classic insurer who includes retention of salvage "without deduction" as standard. Footman James will include it for a small ?15 fee, but as standard they will deduct if you want the salvage.
Maybe there are other insurers out there who do the same as RH but on my brief searches they appear to either gloss over or ignore this detail.
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PostPost by: Chancer » Fri Dec 12, 2014 6:50 pm

Re the paying out on an agreed value Policy.

One of my vehicles was stolen, it was insured on an agreed value Policy either with Adrian Flux or Footman James, long while ago so cant recall, the agreed value was ?16000 and all I did was submit photos (the vehicle was Worth that and more any day of the week).

The police after IIRC one month declared it as gone for good and gave me some number or letter for my insurers, they sent out a loss adjuster to interview me, He asked the usual questions about whether the vehicle was locked etc, any glass on the floor, signs of break in etc then seemed to be concentrating on disputing the insured value, quoting Exchange & Mart prices for similar vehicles, I said to him "you do realise that I have an agreed value Policy dont you?" _ he didn't!

He said" that makes my job a lot easier, no idea why they sent me, they have made a mistake, I wont waste any more of your time" and left.

Shortlly afterwards the insurer paid out the full agreed value less my excess which was a lot as I always go for the highest to reduce the premiums, no salvage of course in this instance to muddy the waters.

The funny thing is the premium comes down a lot more for taking an excess of ?2K than it goes up for an increase of ?2K in agreed value.
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PostPost by: billwill » Thu Sep 17, 2015 5:44 pm

The Link in the first post doesn't work anymore.

The current version of that link is:
https://www.rhspecialistinsurance.co.uk ... -insurance
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