Adding accessories to a vehicle can be a two-edged sword. If you’re the initial owner then you’ve probably got a car that is and does pretty much everything you want. However, when the time comes to sell you discover that not everyone in the market wants to pay extra for the hand-stitched leather ski-bag or chromed plastic grille embellisher that come with your car.
Insuring a brand new car that’s groaning at the gills with extras isn’t too hard. Most insurance policies including the Enthusiast Motor policy offer Full Replacement cover for one or two years, sometimes longer. The problem comes when the Replacement period ends and you’re faced with a seriously significant drop in your agreed Value.
Agreed Value means just that; a value proposed by your Insurer with which you either agree or want to have varied. Variations need to be supported by evidence with which we can compare your vehicle against other in the market. That means listing your modifications or accessories and taking photographs.Adding accessories to a vehicle can be a two-edged sword. If you’re the initial owner then you’ve probably got a car that is and does pretty much everything you want. However, when the time comes to sell you discover that not everyone in the market wants to pay extra for the hand-stitched leather ski-bag or chromed plastic grille embellisher that come with your car.
Walk around the car/truck/bike taking shots as if you were placing an advertisement to sell it. If there are accessories which you believe should add significantly to the value, make sure you include a shot of them. Anything not easily photographed should be listed with the date of installation (if not an original fitment) and cost.
Accessories depreciate a lot faster than most of the cars to which they are attached, so something that cost $1000 three years ago might today contribute just $250-300 to retained value.
Stereos are items that can cost a lot to buy and install but which become worthless very quickly due to newer, better and often cheaper units constantly appearing in the market. Alloy wheels can suffer the same fate and, of course, tyres can’t be insured at all.
Based on the additional information plus details like the distance the vehicle has travelled since last valued and any improvements made – new paint or a re-trim can add appreciably to value – ask your Insurer to review the Sum Insured they have placed on your vehicle. Just please don’t be offended if we don’t allow very much for that lovely ski-bag.