Do you have a High Performance or Custom car?
Motor Insurance Wide UK have put together a policy that specifically deals with vehicles which have been the subject of any custom modifications, specialist paint work, engine tuning, refitted interiors, alloy wheels etc.
If, for instance, you want the best paintwork, the hottest mechanics and the best music system your car could have, many insurers are happy to take your high premiums to protect these valuable additions. The problem arises when it comes to service, claims or replacing stolen items and you have to struggle to get properly paid.
Standard Policies Could Be Trouble
The standard motor policy you hold for your car is a contract of indemnity. This type of policy is intended to restore you, (the policyholder), to the position you enjoyed before you suffered a loss.
Insurers, their agents and engineers assess the value of motor vehicles by reference to trade guides which take no account (other than at the very margin) of mechanical repair or custom works. As a consequence the value that is likely to be placed on a total loss vehicle simply will not reflect such issues on your expenditure.
What is more, some policies contain specific maximum limits of compensation that apply to after market accessories and like items, for example after market alloy wheels and body kits.
Where an owner raises the question of mechanical expenditure when trying to negotiate the pre-accident value of a total loss vehicle with their motor insurers the reply received is usually to the effect that the vehicle must be kept in good order to be on the road and as such expenditure on vehicle maintenance and mechanical replacements is simply part of the rough and tumble of ownership and adds nothing to value.
Where custom work is involved a similar argument is deployed. Custom paint and other modifications move a vehicle out of the mainstream and do not add significantly to value. Beauty is often in the eye of the individual and the general motor trade frown on customisations and actually reduce the values placed on such vehicles.
The problem is worse still where comprehensive cover is not held and compensation has been sought from a Third Party or where the loss is by Fire or Theft and little or no physical evidence is available to support the claims made.
Motor Insurance Wide UK offer a GAP Insurance policy to cover the policy holder for a full reimbursement of the price paid for the car at the time of purchase if it is written-off. Without GAP Insurance, you may be covered for the loss but only receive the value of what the car was worth at the time of the crash, not as of the date you purchased it.