Ferrari classic car insurance dispute will change classic car valuations for Insurance

When is Classic Car Insurance Market Value not Market Value?

Below is a recent lesson on why it is so important to get an agreed valuation certificate for your cherished classic car. The value of classic cars can go up dramatically as well as depreciate, so it is essential that the agreed valuation is updated frequently. It is even more essential that classic car insurance companies are aware of what they are covering!

A Ferrari owner is disputing the payout given to him under a classic car insurance policy from Royal and Sun Alliance (RSA), better known for their More Than standard car insurance brand.
The owner of a 1974 Ferrari Dino Spyder 246 GTS, a Mr Abraham, has had the car for 33 years, has taken his case to the Financial Ombudsman after a dispute over the claims payment when the car was stolen.

Mr Abraham had a classic car policy that was providing cover under 'market value terms' the value of the car in the market at the time of the claim. When he insured it originally he gave a declared value of £35,000 which was accepted by the insurers.

The problems arose when the claim occurred. Classic car experts have valued the car in the current market at £120,000 when it was stolen from his garage in South london last summer. RSA have according to Mr Abrahams only offered him £35,000!

This case is going to bring the whole question of classic car valuations and how classic cars are valued for insurance purposes into the limelight, when the Judgement is delivered by the Financial Ombudsman later this year!

It sounds to us folks here like a little bit cake and eat it! Whatever the outcome it will change the way that classic car insurance is sold!