An update from Peter James Insurance

Written by Dave Youngs, Partnerships Director for Peter James Insurance.

It’s been a fantastic start to the Spring for us as we plan out all the events that the Peter James Insurance team will be present at throughout the summer months as a new season gets underway. It was great to see the Enthusiasts of British Motor Vehicles team at the Practical Classics Restoration Show last month and, as usual, there was a great range of cars on display.
 
One of the questions I get asked the most about insurance is around the retention of the salvage if your pre’85 classic is written off. There are lots of myths, and inaccuracies around how this works out, should the unthinkable happen to your treasured classic.

What do we mean by Salvage Retention?

Firstly, we should define what it means when your car is a write-off, sometimes referred to as a total loss. This is where your vehicle has been damaged beyond economic repair or deemed not safe to be driven again. It is the engineer who inspects the car after the accident that determines this and the category of loss. If you’ve used the Enthusiasts of British Motor Vehicles Insurance offer, your policy includes FREE salvage retention which means that you retain the vehicle should it be deemed a ‘write-off’.  In this case, you would receive a full settlement and retain the vehicle’s salvage with no deduction, other than policy excess.
 
Many other classic insurance brokers also advertise ‘salvage retention’ in their marketing.  It is not until you examine the policy details that you see that this is just an option to purchase the salvage in the event of a total loss.  Salvage can typically cost up to 35% of the vehicle’s pre-accident agreed value so the Peter James offer of FREE salvage is a generous one!
 
There are four categories of insurance classification following an accident and these have been updated in recent years. The first two allow you to retain the salvage, these are:

• Category N (Non-Structural): The vehicle has minor damage and is repairable but the cost of repairs is more than the vehicle is worth, including any reinstatement cover included. This may also apply if it was stolen and then recovered after the insurance company settled the claim.
• Category S (Structural): As per above, but also includes structural damage. Despite this, the vehicle could be safely repaired and can go back on the road but the costs exceed the value.
• Category B: Relates to a vehicle that has sustained major structural damage and the costs of repairs are more than the value. The vehicle is not safe to go back on the road and can therefore never be re-sold. Parts may be salvaged from the vehicle but DVLA will never issue another v5 and the shell must be crushed.
• Category A: This is the worst case of accident damage and there are no salvageable parts, often because they have been contaminated by fire or flood damage. Sadly, the vehicle will have to be crushed according to UK law.

 
Another quick reminder of the key benefits that EBMV Insurance offers you for your pre’85 classic:

• Free salvage retention.
• UK & European breakdown cover included.
• Legal expenses cover included.
• Free and simple agreed value.
• Multi-vehicle cover – insure your classic collection on one policy.

 
Call our club's dedicated insurance line 0121 274 5392 or visit www.britishmotorvehicles.com/insurance for more details and to use our quick quote service