A man whose Porsche rocketed in value from £8,000 to £80,000 prompts concerns that others may have inadequate insurance.
Insurance brokers have been warning that many owners of classic cars may have insurance policies which are providing ‘’woefully inadequate’’ cover for their vehicles. Prices have been rising rapidly and it has led to a situation where many enthusiasts have massively undervalued their car’s worth, many are finding that payouts are a fraction of what they expected. Insurers are advising owners to revalue their cars yearly in order to avoid falling into the trap.
Darren Campbell, a motor engineer from Surrey purchased a Porsche 911S for £8,000 eighteen years ago. He has recently found that it now has a market value of £80,000.
Gerry Bucke of Adrian Flux Insurance Services, said: "We reviewed our classic car portfolio, and noticed that a number of our customers had declared values that looked very low in today's market. Some of the cars have almost doubled in value since the owner’s last valuation, and underinsurance works on classic car insurance – where the premium is partly calculated based on the value – in a similar way to home insurance.
“So owners could end up only receiving a percentage of the car’s true value.”
As well as some of the obvious classics such as the 1960 Bentley Continental Flying Spur which has jumped from £50,000 to £115,000 in just ten years; owners of less flamboyant models such as early Fiat 500s are being warned to keep on top of their valuations.
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