Checking Motorhome Warranty Insurances Valuations. As many of you know my background is insurance so there are many crossovers between collectable cars and motorhomes. As you suggested, there is an opportunity for an underwriter to make hay, but bubbles don’t last long and once manufacturing cranks up I expect the values will re-adjust.

Pre-Coronavirus Motorhome & Camper valuations

Pre-Covid the values of Pre-Owned campervans and Motorhomes were monitored by specialist Editors from ‘Glass’s’ using the regularly published ‘Glass’s Guides’ by group, so Car, Motorhome-Camper, Motorcycle, and Caravan.   Then, Manufacturers, dealerships, and insurance companies refer to these guides to assess the value of a specific vehicle. *Motor vehicle books are published monthly and Caravans quarterly.

Post-Coronavirus

Coronavirus has as we know impacted heavily on a manufacturer’s ability to build new vehicles, as with no new vehicles coming to the market, pre-owned ones have increased in value.  To the point that some late model well-maintained vehicles can retail for almost the same price as a new one would have in 2019-20.  It is a Seller’s market as they say.

Insurance value against ‘Market value’

Insurance companies use Glass’s guide to assess the value of a vehicle in the event of accident write-off or theft, with market values now rising substantially will your insurer pay the new market-rate when the unthinkable happens.  Or, will they pay a far lesser sum than it will cost to replace your vehicle?

‘Stated value’ (The value you the customer specify as you see it at the time you buy your insurance) against ‘Actual Value’ (The value the Insurance company will actually payout in the event of a claim.  In reality, these are rarely the same.  This means there is an element of risk that an owner will not be in a position to buy a like-for-like vehicle in the event of its loss.  In the ‘Classic & Collectible Car’ world, owners can opt for an ‘Agreed value’, this is where a Vintage or Classic car will have a higher value than the same vehicle not properly maintained and used daily.  It is not possible to specify an ‘Agreed Value’ on an everyday modern vehicle.

The Good News

The good news for owners is that values will be higher for a while, so late-model and well-maintained vehicles are and will continue to be desirable and if something is desirable, people will pay more!  Glass’s guides are updated regularly as above, using the market conditions at the time.  So the Editors providing values will take into account the current trends in higher values and include this in their calculations.  This bubble will also like all before it will burst when manufacturers again crank up production and the market re-balances.

Another solution may be to buy ‘Gap Insurance’.  This is a top-up cover to your road insurance to help offset the difference in what the insurer will pay to what the market requires you to buy a like-for-like vehicle.  Be careful though when buying ‘Gap’ insurance, it is easy to buy insurance that is almost impossible to draw on, so read the small print and ask the broker-insurer some very specific questions on what is covered.

There are many other posts on the Engineer Aftercare News page for owners to read on a wide range of Caravan, Campervan & Motorhome topics at; www.engineerinsuranceandaftercare.com.

Have a safe 2022!

Martyn Raybould

Managing Director

Engineer Aftercare Ltd