For years, collectors of wine and fine art have slept easy knowing that any loss in value following repair to their prized possessions would be covered by their Chubb insurance policy. Well, now that same peace of mind is afforded to classic car collectors too.
Diminution In Value (DIV) cover pays the policyholder the difference between a car's market value before and after a repair, as well as the repair costs. So, if a car worth £85,000 is valued at £70,000 after having been repaired following a crash, Chubb will cover the £15,000 shortfall. The cover applies to cars over 15 years old and will be paid out if the car has been valued or purchased at least 24 months before the loss.
It’s welcome news to owners who told us that losing value on their cars in the event of an accident or damage was a major concern. Our pioneering cover – a first in the UK motor insurance market – gives them even more certainty about how they would be treated after an incident. We understand that even after using first-class specialists to repair damage, the intrinsic value of a car may be affected, whether it's due to the lack of original parts or the mere fact that the car has been repaired.
We also know that the resale value of our clients' cars is extremely important to them, and to some their cars are considered unique pieces of art. And that’s why our service doesn't stop at paying to restore or replace a car but extends to protecting classic car owners’ assets and finances. And that will help us all sleep a bit easier.
• Diminution In Value is applied if the car has been valued/purchased at least 24 months prior to that insured loss and has been repaired, and the market value of the car immediately before the damage exceeds the market value immediately after the repair. Chubb will pay the difference between the market values before and after the repair.
• If a client's insured car is partially damaged, Chubb will pay the amount required to repair or replace (whichever is less) the damaged parts.
• Maximum cost is up to 100% of the covered loss or £250,000 or 20% of the amount of the sum insured, whichever is the lesser amount for that vehicle.