'Gap insurance' for classics?
in [Classic Cars]
|
From: Adrian on 8 Dec 2008 02:41 Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much like they were saying: > Hmmm. 'Gap insurance' offers a secondary premium over and above your > insurance policy to cover the shortfall between what your insurance pays > out and the actual cost of replacing your car. Not quite. It covers the shortfall between the value of the used car your insurance has just paid the value of, and the cost of replacing it with a brand new equivalent.
From: Adrian on 8 Dec 2008 02:43 Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much like they were saying: >> Tell us the answer *you* want to hear and I'm sure someone will oblige, >> but that won't mean that the answer given is correct... > Okay. The answer I was looking for was "well I cant see a theoretical > reason why it shouldn't be possible. But I've no idea who sells it/xxxxx > sell it, and here's their website URL". Isn't >>>> <shrug> >>>> Fine. >>>> >>>> So go buy it. Oh, wait. You can't. Nobody offers it. >>>> >>>> Looks like a business opportunity for you, eh? close enough to that preferred answer for you?
From: Phileaus Leaius on 8 Dec 2008 03:31 Adrian wrote: > Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much like > they were saying: > >> Hmmm. 'Gap insurance' offers a secondary premium over and above your >> insurance policy to cover the shortfall between what your insurance pays >> out and the actual cost of replacing your car. > > Not quite. It covers the shortfall between the value of the used car your > insurance has just paid the value of, and the cost of replacing it with a > brand new equivalent. Exactly the scenario I was attempting to cover, then.
From: Kevin Poole on 8 Dec 2008 03:53 Phileaus Leaius wrote: > I've managed to get a guaranteed value policy for �11k on my freshly > rebuilt motor, but I know it would cost more than �14k to have a > replacement built for me if the worst happens. I'm happy that the GV is > 'correct', but where can I buy an *additional* policy to 'top up' that > �11k to the amount it would cost to replace? It's a shame that this thread has attracted so much attention from some of the variously-challenged regulars, as I don't think it is a daft question at all. I can't answer the OP's question, in the sense of pointing to a policy from a particular insurer, but the basic principle isn't unreasonable, as illustrated by two examples which many of us will have encountered. Most house contents insurance policies are nowadays based on "new for old", with a few minor exceptions (clothes, etc), and require you to assess the total cost of replacing all your possessions with new, equivalent ones. A paperback book may only have cost a few pence from a charity shop, but in the event of a claim, even one unrelated to that book, an assessor would look at the cost of replacement with a new copy, not the amount you'd get if you put it on eBay. They assess the premium on that basis, and pay out on that basis. So it's not true to say "Insurers have and will only ever insure whatever is being insured for its market value" I once a owned a rather splendid, large, Edwardian semi: nicely detailed, good quality joinery, ornate plasterwork, large, high rooms, and with a four-car garage. Unfortunately, it was also on a very busy road in one of the less favoured areas of Derbyshire, so its market value was around 60% of its rebuilding cost. My insurers calculated a premium based on its rebuilding cost, and did not include a "write-off" clause. Isn't this an exact analogy to the OP's requirement? Insurers have even thought of things like betterment, so the OP would have to cough up if he wanted the 7 cylinder engine put in his rebuilt Spagthorpe. The only other glimmer of hope I could offer to the OP would be to look for a policy with a "Retention of Salvage" clause. I insure some classics with Richardson Hosken, aka RH Specialist Insurance, and if get an agreed valuation on one of the cars, then wrap it round a tree, I get the agreed value, _and_ I keep the bits, with no deduction for their "scrap" value. Not what the OP would ideally like, but better than seeing his car swinging from the Hiab. -- Kevin Poole ****Use current date to reply (e.g. dec2008(a)mainbeam.co.uk)****
From: Adrian on 8 Dec 2008 04:21
Phileaus Leaius <whos(a)prettyboy.then> gurgled happily, sounding much like they were saying: >>> Hmmm. 'Gap insurance' offers a secondary premium over and above your >>> insurance policy to cover the shortfall between what your insurance >>> pays out and the actual cost of replacing your car. >> Not quite. It covers the shortfall between the value of the used car >> your insurance has just paid the value of, and the cost of replacing it >> with a brand new equivalent. > Exactly the scenario I was attempting to cover, then. Umm, no. |