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

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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.

Any news will be released here as an update as it becomes available.