Classic Car Insurance Glossary Of Terms
Some common classic car insurance policy items and glossary of terms:
Agreed value: If you have added lots of accessories or worked hard on major modifications to your classic car, you may wish to have the insured value of your vehicle reflect it's true worth. Sureterm Direct Insurance can include an Agreed Value upon request at no additional cost on most classic cars.
Approved repairer: A repairer we have approved and authorised to repair your classic car following a claim.
Betterment: Where the results of repairs or replacement due to the loss of your classic car results in the insured receiving something better than he had before the loss. The difference is known as "betterment." In most instances, this difference is discussed before the repairs or replacement is made and the insured has agreed to an appropriate figure as to his contribution for this "betterment." This is also referred to as "new for old."
Compulsory Excess: If you make an insurance claim, this is the amount you agree to pay yourself to repair your classic car.
European Use / Green Card: If you drive your classic car abroad, this is insurance designed to make it unnecessary to apply for insurance at the border of each country. It confirms that you have at least the minimum legal insurance cover.
Insurance is the transfer of risk by an individual, such as yourself, for your classic car, or an organisation, such as your business, to the insurance company. You or your organisation will thus be known as the policy holder for the classic car. The insurance company receives payment in the form of a premium and will compensate you in the event of losses or damages sustained by you or your classic car.
Legal Expenses Insurance: Legal Expenses Insurance is an optional extra to your classic car insurance to meet legal and recovery costs for your “uninsured losses” resulting from an accident. For example, you may need to sue the Third Party for recovery of your out of pocket excess after an accident involving your classic car. You may also have had to hire a classic car or may need to obtain compensation for an injury arising from an accident, which was not your fault. Such things are not always covered under your classic car insurance policy itself. A legal expenses policy to meet those legal costs is a must.
Limited mileage: If you do not drive excessive miles in your classic car, Sureterm Direct Insurance allows you to have a cheaper premium based upon an agreed maximum annual mileage.
No-Claims Bonus: You get a discount on your insurance premium if you drive your classic car without making a claim on its insurance. It is sometimes possible to pay extra to protect your bonus in the event of a claim.
Proposal Form: The proposal form is the basis of the contract for insurance on your classic car. It is probably the most important aspect of the cover process. This form may be a written hard copy form or may be taken from the entered details on the system. As insurance is an intangible product whose price is based on the information provided by you then any errors or non-disclosure of material facts can result in the policy being voided. Check with your insurance advisor if you have any difficulties or need advice. Also, if you know of something, which the Insurance Advisor ought to know, but the proposal form doesn’t ask that question, do not think that you do not have to tell them. You have a legal duty to disclose all facts.
Salvage retention: Your classic car may be declared a write-off. Sureterm Direct Insurance allows as standard a buy back option to buy back the wreckage in the event of a major accident. In some cases however, the classic car is so badly damaged that the insurance company is required by law to have the vehicle destroyed.
Voluntary excess: You can sometimes get a cheaper insurance premium on your classic car by arranging to pay an agreed sum in the event of a claim.
Windscreen Cover: Windscreens are only covered under Comprehensive Private Car policies through Sureterm Direct Insurance and are subject to different excesses than the main policy. A damaged windscreen on your classic car (i.e. scratched) may not have any excess if repaired by the approved Insurers Windscreen Company. Windscreen claims rarely affect the no claims bonus.