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Thread: Insurance "agreed value" for BMW E46 (316i Sport Compact 2000)

  1. #1
    Join Date
    Jul 2014

    Default Insurance "agreed value" for BMW E46 (316i Sport Compact 2000)

    Hi All,

    I am considering moving my E46 (316i Sport Compact 2000) insurance to an "agreed value" policy.

    Can anyone advise me what range of values I should be considering / negotiating for "agreed value" ?

    Can I increase the "agreed value", for example by paying a higher insurance premium? I am happy to pay a higher insurance premium.

    How does "agreed value" relate to definition of "category C / D write off" ?

    I originally paid £16,000 but that was more than thirteen years ago. She has done approx 150,000 miles. She is kept in a garage over night. She is (currently) and has always been insured full-comprehensive, but based on "market value" and not "agreed value".

    Thank you for any advice,
    Best regards,

  2. #2
    Join Date
    Apr 2012


    As I understand it, "agreed value" insurance is normally applied to classic (or cherished) cars. It is an insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without any adjustment for depreciation or appreciation. However, in the event of a total loss – or possible total loss – insurers will want to inspect the vehicle to ensure that its condition at the time of the accident remains in keeping with that at the time of its agreed valuation.

    If the car has clearly deteriorated (other than its obvious damage!) then the insurer is likely to offer the current market value, whick may be very little.

    This would clearly mean that you cannot inflate the value of the car by paying a higher premium.

    Back in the 90s, when I was a fleet manager, one of my drivers ran into the back of a 'cherished' Morris Minor. The damage was not serious, but our insurers would only pay out the market value, under £100, as the 'book' value. The owner had spent quite a lot of money getting his car up to concourse standard and was naturally pretty aggrieved. I guess if he had an agreed value policy, he would not have had the problem.

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