auto-scrappage categories for classic carsWhat
is the FBHVC?
How do I get a
valuation for an agreed value insurance policy renewal?
See our NEWS item
in April 2016. More
salvage rights for classic car policyholders
See our article released in
December 2012 on this topic. More
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.
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
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 |
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 to be allocated for an historic vehicle as 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 accepted this, subject only to considerations of safety and health. Thanks
to the FBHVC a paragraph is included in the Code of Practice: "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
repair might be seen as worth it in the eyes of the owner. But it likely the scrappage
buy-back arrangements 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
concerns over the scrappage buyback terms 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 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 the scrappage to be able
to rebuild the car. So classic car policies that have terms where upon a full
payout by the insurer and then the ownership of the scrappage 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.
Any news will be released here
as an update as it becomes available.