Cherished Cars Underwriting Guide Valid from 1st August 2012 - www.towergate.co.uk/cherishedcar
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Cherished Cars
Underwriting Guide
Valid from 1st August 2012
www.towergate.co.uk/cherishedcar
Table of Contents
Contact Information 3
Background 4
Insurers 4
Cover 4
Motor Insurers’ Information Centre 4
Rating 4
Cover Notes 5
Vehicle Value 5
Use 5
Driving Other Cars 5
Mid Term Adjustments 5
Drivers 5
Change of Vehicle 5
Mileage 6
Mid Term Mileage Change 6
Renewal 6
Lapsed policies 6
Agreed Value 6
Modifications 8
Unacceptable Risks 9
Continental Use 10
Policy Excess 10
Overnight Garaging 11
Accessories & Spare Parts 11
Open Top Cars 11
Policy Cancellation 11
Salvage 11
UK and European Breakdown Assistance 11
Optional Covers 12
Reinstatement Repair 12
Cherished Number Plate 12
Wedding Use 12
Specialist Vehicles 13
2
Contact Information
Underwriting
Calls may be recorded.
Towergate Underwriting Cherished Cars
Sandersley House
Upton Road
Poole
Dorset
BH17 7AG
Tel 0844 980 8288
Fax 0844 980 8289
E-mail cherished.car@towergate.co.uk
Claims
Aviva Motor Claims
Po Box 121
Surrey Street
Norwich
NR1 3ZH
Tel 0844 892 2842 (quoting reference 0734BW00025 and policy number)
Due to the sometimes unusual and complex manufacture of older vehicles, as well as the difficulty in
obtaining replacement parts, the approved repairer network system employed by the majority of
insurers is not always suitable. In such circumstances the policyholder should submit two pro-forma
invoices from either a classic marque or repair specialist for consideration.
Windscreen Claims
Aviva Motor Claims
Glass Reimbursement Team
Po Box 132
Surrey Street
Norwich
NR1 3NS
Tel 08704 172024
In the event of windscreen breakage contact should be made for direct billing, National Windscreens
on 0800 622122 or Autoglass on 0844 875 2501 in the first instance. If they are unable to complete
repairs, an account should be submitted direct to Aviva Motor Claims Glass Reimbursement Team for
settlement, after deduction of the appropriate policy excess.
Windscreen cover is provided upto an indemnity limit of £1,000 subject to a £60 excess if using one of
the afore mentioned approved repairers. The excess will increase to £80 if a non approved repairer is
used.
A £10 excess applies to all windscreen repairs.
Should difficulty be experienced locating glass, please contact our dedicated Towergate Glass sourcing
line on 0844 892 2840
Quote & Buy Site
www.towergate.co.uk/cherishedcars
For access to this facility please contact Towergate Broker Support on 0844 892 1600
between 8.00am – 5.30pm or e-mail brokersupport@towergate.co.uk
3Background
Towergate Underwriting Cherished Cars (TUCC) is a leading classic vehicle insurance underwriter with over 40
years of experience in this field.
As one of the leading providers of specialist cherished vehicle insurance, we have developed our Cherished Car
policy to cater for a wide range of classic and prestige vehicles, incorporating all the benefits and features that
your client would expect from a classic vehicle policy.
The Cherished Car policy is available for a wide range of vehicles in excess of 10 years old, with a number of
limited mileage options available dependent on the age of the vehicle.
Although Agreed Value is available for all risks, policies are initially issued on a market value basis. Agreed Value
can only be given once the appropriate documentation has been received and the value requested has been
approved by our Valuation Department. See page 6 for full details.
Insurers
The policy is underwritten by Aviva Insurance Limited.
To utilise the Cherished Car product you must have a current private motor agency with Aviva Insurance
Limited.
Aviva Insurance Limited administer all claims. All claims enquiries should be directed to the appropriate contact
details on page 3.
Cover
The Cherished Car policy provides fully comprehensive cover for Road Risks policies and is not available on a
Third Party Fire & Theft or Third Party Only basis.
Laid Up cover is limited to Accidental Damage Fire & Theft only. As no road risks cover is in force a Certificate of
insurance will not be issued. The policy can not be amended to ‘Laid Up’ mid term. No refund of premium is
allowed in the event a ‘Laid Up’ policy is cancelled.
Driving Other Cars is excluded.
Motor Insurers’ Information Centre
Following the adoption of Article 76 of the Motor Insurers’ Bureau Memorandum of Association we are duty
bound to supply certain data to the Motor Insurance Database (MID) within 7 days of any issue of cover.
Full details of the new risk or alteration irrespective of whether all the required documents are to hand MUST
be provided on the day of issue. In the case of new business a copy of the completed proposal form or
statement of fact is acceptable.
Subsequent details e.g. photographs, club membership are not currently MID requirements and may therefore
be sent at a later date.
These instructions do not apply to new business submitted via the Cherished Car Quote & Buy site or EDI
transmissions.
Rating
All new business quotations should be obtained through our Quote & Buy website at
www.towergate.co.uk/cherishedcars or via the following software houses which are EDI capable
for both new business and mid term adjustments:- Open GI, SSP (Electra M3), CDL or TGSL.
Please contact the underwriting department for policy number ranges.
Due to the wide & diverse nature of the vehicles we insure it may not be possible to locate the exact vehicle you
require cover for. In such circumstances please telephone our underwriting department who will be more than
happy to assist further.
4Cover notes
Should it be necessary to issue a manual cover note, only an Aviva Insurance Limited cover note
may be issued and must be immediately submitted to TUCC.
Only one cover note should be issued and may not be extended beyond the cover note period.
The new business cover note MUST NOT show Agreed Value. The documentary evidence must be
supplied first by the policyholder to enable agreement of the value requested. See page 6 for full
details.
Vehicle Value
Maximum vehicle value permitted under the scheme is £60,000. For vehicle values in excess of
£60,000 refer to TUCC
Use
Use is restricted to Social Domestic & Pleasure including commuting to and from a permanent place of
work, including competitions, rallies and trials but excluding racing, speed testing, events timed
against the clock and all driving on any motor track.
Track driving may be reinstated for specific events. Full details must be referred to TUCC for
acceptance. If extension is granted NIL A/P will apply.
Driving Other Cars
Excluded
Mid Term Adjustments
Minimum charge for ANY adjustment or duplicate certificate is £15 + IPT.
No refund of less than £10 will be given.
Drivers
Maximum six permitted named drivers only including proposer.
All policyholders must be 23 or over and less than 85 years of age and all must hold a full driving
licence. The proposer must have held a driving licence for a minimum of 3 years and been resident in
the UK for the last 12 months.
Where a UK citizen has been living/working abroad for not more than 5 years and they hold a UK
licence no additional terms need apply.
All policies will be issued on a named driver basis only. All premium calculations are based on the age
of the youngest driver.
Additional drivers aged 21-24 may be acceptable. Refer to TUCC.
- Additional Drivers A cover note must be issued and a copy sent to TUCC,
together with an additional drivers form. The old certificate should also be returned
where a driver is being deleted.
Change of Vehicle
A cover note must be issued and returned with new photographs (if agreed value is required) and old
certificate of insurance. The mileage of the old & new vehicles must be declared to ensure that the
annual mileage limitation is not exceeded.
5Mileage
The Cherished Car policy is a limited mileage policy and provides for a maximum permitted annual mileage of
5000 miles for vehicles 10-20 years old and 7500 miles for vehicles in excess of 20 years old.
If the mileage has been exceeded, renewal can only be invited on the basis of a higher mileage option if
available. Mileage will be checked at any claim occasion. If mileage has been exceeded the claim will be denied.
Any insured that has the maximum permitted miles and exceeds this in the policy year will have the renewal
invitation withdrawn. Should this not be possible a premium loading will be applied and renewal at the next
renewal date will not be invited.
You must ensure your client is fully aware that this is a limited mileage policy and that policy cover
may be prejudiced if the limitation selected by them is exceeded.
Mid Term Mileage Change
If the annual mileage is altered because the mileage limits have been exceeded, then the full annual difference
will be charged. Please note that the maximum permitted mileage in any one year is 5000 miles (increased to
7500 miles for vehicles over 20 years old, at inception of the policy).
Requests for a reduction in the mileage will only be considered at renewal.
Renewals
Renewal invite will be issued by way of a manual renewal notice, schedule and certificate and will assume no
change to the value insured or the mileage requested.
NOTE we do not offer EDI renewal functionality
All policies currently issued on a Market Value basis will be automatically renewed. If there are no changes to
the policy terms, there is no longer any need to confirm renewal to us. It is not necessary to notify us of a
mileage reading for Market Value policies at renewal.
For Agreed Value polices, new photographs will be required every three years. The policy will automatically
reduce to Market Value at renewal with Agreed Value being reinstated upon receipt of new photographs.
There is no need to supply an up to date mileage reading on Agreed Value policies where new photographs are
not required. These polices will automatically be renewed and there is no need to confirm renewal to us.
Please note that Agreed Value certificates are not issued on an annual basis. The certificate will remain valid for
3 years until new photographs are requested at renewal, unless a mid term revaluation is undertaken.
As the Cherished Car policy is a limited mileage contract, your client will now be required to retain the last 3
years MOT certificates (where applicable) to substantiate the vehicles annual mileage in the event of a claim.
This will be clarified to them on the policy schedule within the “Notice to Policyholders” section.
Lapsed Policies
Documents should be returned immediately marked ‘cancelled renewal not required’. Failure to return the
Certificate to TUCC immediately will result in a time on risk charge being made.
This does not apply to EDI policies where you should lapse the policy through your system.
Agreed Value
The Agreed Value extension is an integral part of any classic vehicle policy and is intended to ascertain the
correct market value of a vehicle at inception of the policy rather than when a claim occurs.
Valuations will be given by us on receipt of all required documentation. This consists of a fully completed
proposal form, copy of the purchase receipt (if acquired in the preceding six months) and five recent
photographs of the vehicle. These should consist of one showing the front and one side of the vehicle with the
number plate clearly in view, a second showing the rear and the second side of the vehicle, again clearly
showing the vehicle number plate, one of the engine bay, one of the interior & a clear reading of the odometer.
These photographs must be signed and dated by the insured on the reverse. We will accept digital photographs
only if they are printed on photographic / coated paper.
6Please note we are unable to accept Polaroid photographs. Photographs will be
returned with the Agreed Value certificate and must be retained by the policyholder
for the duration of the policy as in the event of a re-valuation or a claim, the policyholder
will need to produce these photographs again. Each image must be a minimum of 152mm x
102mm. Photographs may be submitted by e-mail in a single .PDF file exceeding no more than
1mb to cherished.car@towergate.co.uk.
Irrespective of age or value, all vehicles acceptable under the Cherished Car policy are eligible for Agreed
Value.
A fee of £15 will apply to vehicles less than 25 years of age and £5000 in value requesting agreed value.
Policy cover remains on a Market Value basis until the policyholder receives their valuation certificate.
Whilst we endeavour to accommodate reasonable value requests wherever possible, there will be occasions
when we will be unable to do so. It is not in anyone’s interests to allow a value on a vehicle that is out of
step with the market as a whole, so our experts carefully research each request individually to ensure they
are correct.
Our definition
We base our values upon the fair market value of a vehicle (the value that could be achieved in a sale
between a willing seller and a willing buyer), agreed at inception and guaranteed until the following renewal.
Our wording, like most other motor policies, is based upon fair market value and not reinstatement. Often,
we are asked to agree a value based upon the total cost of restoration, but although the cost of a
professional refurbishment will have an influence on a vehicle’s value, a restored car in most cases will have a
market value lower than the cost of its restoration so we are unlikely to agree this.
If we do not agree your client’s value
If your client wishes to make representation to us about their vehicle value for reassessment then they
should, via you, submit written documentary evidence to as to why they think their vehicle has been
incorrectly valued.
This evidence should take the form of copy bills of recent restoration work (but not routine maintenance),
more or better photographs, details of concours competition successes, current sales adverts showing similar
vehicles of the same model in comparable condition to their own, or in the case of a recently purchased
vehicle, a copy purchase receipt.
In the absence of further satisfactory evidence, the value of the vehicle as agreed will apply until policy
renewal date when it will again be assessed in light of the prevailing market.
Mid term increases
We are only prepared to consider increases mid term if there has been significant work carried out that may
reasonably increase the vehicles value. Each case will be different, but we do need to be satisfied any
requests for increases are fully justified against realistic market prices, so any supporting evidence will greatly
assist us to accommodate your client’s request.
Any request to increase a vehicles value mid term where no futher restoration work has been undertaken,
will be subject to a fee of £15 in addition to any premium increase where the increase is agreed.
Specialist Valuations
We are prepared to accept valuations from a recognised and approved marque specialist or club, provided
this is based upon open market value. It should not be worded ‘for insurance purposes’, but instead reflect
the expert’s view of the achievable price should it be offered for sale. We will not accept valuations based
upon rebuild or reinstatement cost and all such valuations must be independent of any restorer of the
vehicle.
Vehicles under restoration
Where a vehicle is undergoing restoration which necessitates being taken off the road, we will be unable to
offer an Agreed Value until such time as the restoration is complete. Until then, the policy will remain on a
Market Value basis. Upon completion of the work and on presentation of fresh photographs, we will
reinstate Agreed Value, subject to our usual underwriting criteria.
7Modifications
All modifications must be referred before assuming cover.
We are prepared to consider minor modifications from standard factory specifications provided such alterations
do not involve turbo charging, alterations to existing turbo installations, or aftermarket cabriolet conversions
unless carried out by a recognised coachbuilder from new.
Non-standard or custom paint may be acceptable, subject to an endorsement limiting any paint repair to one
base colour.
All engine transplants will be considered provided any power/capacity increase is in keeping with the original
vehicle’s limitations, but refer in the first instance with full details of where the donor engine originated, along with
capacity and make.
8Unacceptable Risks
1. Convictions
Any Conviction resulting in disqualification unless the conviction is for speeding and the
disqualification period is less than 3 months.
Any driver with the following convictions within the last 5 years: - All DD & DR UT offences.
Any driver with 4 or more convictions.
2. Type of vehicle
Amphibious, custom cars, coaches, beach buggies, American manufactured stretched limousines, mini
buses, aftermarket camper vans conversions not carried out by professionals.
Japanese imports with the exception of the Mazda Eunos, Nissian Figaro and Toyoto MR2 (non turbo)
models are unacceptable.
Other vehicles which may have been modified from standard, various commercial vehicles, tractors,
custom made replicas and ‘Q’ registered vehicles may be acceptable – refer to TUCC.
All imported vehicles must be re-registered on UK plates within 30 days of importation.
3. Medical Conditions/Disabilities
Unacceptable: - If any proposer or driver has any medical condition, infirmity or
disability which could impair the ability to drive where: the DVLA
has not been notified of the medical condition, infirmity or disability the
DVLA has not agreed to the issue of or continuance of a driving licence.
4. Previous Insurance
Where any insurance has been declined, refused, special conditions imposed or had a policy cancelled.
5. Short Period Risks, Temporary Additional Vehicles and Temporary Substitutions
Not acceptable.
6. Northern Ireland
Only acceptable if intermediary is domiciled in Northern Ireland – Refer to TUCC for rates.
7. Occupation
Refer any person in the following categories:
Members of the Entertainment profession, Directors & Producers (film, stage, radio & TV)
The following occupations are unacceptable
Casino and Club owners and employees, Amusement Caterers, Scrap Metal Dealers & Merchants, Pop
Musicians, Professional & Semi-professional Sportsmen/Sportswomen, Fairground Showmen, Circus
Employees, Actors & Actresses, Models, Itinerant Workers or traders, Caravan Dwellers/Travellers,
Foreign Diplomats, Embassy Personnel, Members of Foreign Armed Forces.
8. Airside Risks
Where vehicles may regularly be used within the confines of an airfield we will allow use when the
airfield is not operational
Except to the extent that we are liable under the Road Traffic Acts
(a) loss of or damage to aircraft or aerial devices
(b) bodily injury to any person while on board or getting into or out of an aircraft or aerial device
99. Use
Any form of business use.
10. Company Owned / Registered vehicles
The Cherished Car policy is only available to privately owned and registered vehicles. Any vehicle owned or
registered in a business / company name is not acceptable under this scheme.
Continental Use
Full policy cover is provided for up to 90 days in any one period of insurance (in addition to automatically
providing the minimum cover required by law) in the countries listed below.
Andorra, Austria, Belgium, Bulgaria, Canary Islands, Croatia, Cyprus – South (Republic of Cyprus), Czech
Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland
(Republic), Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Madeira, Monaco, Netherlands, Norway,
Poland, Portugal, Romania, San Marino, Slovenia, Slovakia, Spain, Sweden, Switzerland, Ukraine and Vatican
City.
In addition the policy provides in compliance with EU Directives the necessary cover to meet the laws on
compulsory insurance of motor vehicles in any other country which is a member of the European Union and any
other country which the European Commission is satisfied meet the requirements of Article 7 (2) of EC Directive
72/166/EEC.
The Cherished Car policy is only available for vehicles registered in the UK and is not designed for vehicles kept
abroad on a permanent basis.
Policy Excess
Standard Accidental Damage, Fire & Theft excess for vehicles with a value up to £60,000
Age / Vehicle Group 1 2 3 4 5 5+
10-12 £375 £400 £425 £450 £500 £650
13-15 £275 £375 £400 £425 £450 £650
16-20 £250 £275 £375 £400 £425 £600
21-25 £150 £225 £275 £375 £400 £550
Vehicles exceeding 25 years of age or £60,000 in value, rated per the table below.
>£10k £10,001-£25k £25,001-£40k £40,001-£50k £50,001-£60k £60,001-£75k £75,001-£100k
£100 £250 £400 £500 £600 £750 £1,000
Additional Excess
An additional £200 ADF&T excess applies where the TAD is 21-24 years old or the policy holder is less than 25.
An additional £250 ADF&T excess applies where the policyholder or TAD is greater than 76.
An additional £150 ADF&T excess applies to all acceptable Japanese import vehicles.
Windscreen Excess
A maximum indemnity limit of £1,000 is provided subject to a £60 excess if using an approved repairer.
The excess will increase to £80 if non approved repaired is used.
All Windscreen repairs are subject to a £10 excess.
10Overnight Garaging
For theft cover to apply vehicles having a value of £15,000 or more in areas 3 & 4 or
£20,000 or more in areas 1 & 2 must be kept in a locked building between the hours of 10:00pm
and 06:00am unless the vehicle is in the course of a journey. Refer to system quotes for area rating.
Accessories and Spare Parts
Theft of accessories and spare parts in or on the car are excluded unless the vehicle is stolen at the
same time.
Open Top cars
Cover will exclude personal effects cover unless kept in a locked boot. This restriction also applies to
Cabriolet Convertibles or cars with a detachable hardtop.
Policy Cancellation
Subject to return of the Certificate of Insurance, completion of a Lost Certificate Declaration Form, or
an EDI Cancellation Message, policy cancellation refunds will be calculated on a pro-rata basis, subject
to no claims occurring or the agreed mileage being exceeded. Any return premium will be subject to a
£20 administration fee. Should the remaining policy premium be less than £20, no refund will be
allowed.
Please note that requests for return of premium must state the mileage/kilometre reading at the date
of cancellation.
Refunds can not be provided for unused mileage.
If a policy is to be cancelled following the total loss of an insured vehicle, no refund of premium will be
allowed.
If a replacement vehicle is purchased it may be substituted for the vehicle written off with any premium
adjustment necessary.
No refund of premium is allowed on Laid Up policies.
Salvage
In the event of a total loss the insured will, where legislation permits, be offered the opportunity to
retain the vehicle salvage subject to deduction of the policy excess and an agreed deduction for the
salvage.
UK and European Breakdown Assistance
Nationwide Recovery and European Breakdown Assistance is automatically provided as long as the
vehicle breaks down more than 1 mile from home and is no longer than 5.1 metres, no heavier than
3,500 kilograms, not higher than 1.95 meters and no wider than 2.1 metres.
Breakdown policy cover is underwritten by Inter Partner Assistance SA (IPA) which is fully owned by
Axa Assistance Group.
For assistance in the UK call: 0844 892 2841
For assistance abroad call: 0044 (0) 1737 826036
11Optional Covers
Reinstatement Repair – Only available on Agreed Value policies
Although the Agreed Value may be sufficient to replace the insured vehicle following a total loss, due to the
complex construction of some classic vehicles it may not be sufficient to cover repair costs.
Reinstatement Repair cover will increase the Agreed Value as stated in the policy schedule by either 25% or 50%
(as chosen by the policyholder) in respect of repairs to the insured vehicle, therefore providing additional funds
to repair rather than replace the insured vehicle. This increase does not apply in any other circumstances.
Cherished Number Plate Cover
The number plate allocated to a vehicle can sometimes have a positive impact on its value. For example an E-
Type Jaguar with JAG 1 is likely to command a higher value than if it had ABC 123.
Contrary to popular belief, all registration numbers are owned by The Secretary of State, not the owner of the
vehicle to which it is allocated. If the insured vehicle is stolen and not recovered, DVLA can withdraw the
number resulting in a potential loss of a valuable source of income for the policyholder.
The Cherished Car policy may be extended to include cherished number plate insurance up to a maximum sum
insured of £10,000 (values in excess of this must be referred). In the event of a claim the value of the number
plate is to be confirmed by a member of the Cherished Numbers Dealers Association.
No claim may be made under this extension until a claim for theft or total loss of the vehicle has been paid by
the insurer. Should the number subsequently be re-issued by the DVLA, it will become the property of the
Insurer.
Wedding Use
The Cherished Car policy may be extended to include the appropriate liability cover for wedding hire for an
additional premium per wedding regardless of vehicle types. A cover note must be issued to extend the use.
Annual Wedding Use will be permitted subject to the appropriate additional premium.
Important note: This use is intended to provide an income to support the upkeep of the vehicle and is
not available to chauffeurs, private hire operators, any occupation in connection with the motor trade
or where the wedding hire is run in the course of a business.
12Towergate Underwriting Specialist Vehicle
Towergate Underwriting is now able to provide High Net Worth and Specialist Vehicle
Insurance via a panel of leading UK insurers, to compliment the Cherished Car product.
These products will enable you to accommodate a greater variety of risks than currently available via
Towergate products.
With our comprehensive motor insurance, you can be sure your clients vehicles are in safe hands.
Whether they are classic collectors items, luxury cars, performance cars or something more modest and
everyday, our policies include a range of attractive additional protections that can be hard to find
elsewhere.
Our High Net Worth policies have a competitive minimum premium, with no paperwork for your client
to complete or return and includes : -
• Extended Agreed Value
• New car replacement (up to 23 months)
• Like for Like courtesy car
• European and home-call breakdown cover
• Any driver cover
• 90 days EU cover any one trip
We are able to write individual & family fleet policies, subject to at least one vehicle being less than 10
years of age and having a value greater than £55,000.
Our Specialist Vehicle products include: -
• Classic Cars*
• Classic Motorcycle
• Classic Tractors*
• Kit Cars (including Parts Only cover)
• American (from 7 years old)*
*We are able to cover vehicles not covered via Towergate Underwriting Cherished Cars
To find out more, call us on 0844 346 0168 or e-mail
tupcmotor@towergate.co.uk for High Net Worth Risks
or
specialistvehicle@towergate.co.uk for any of the Specialist Vehicle products
13Towergate Underwriting and Towergate Underwriting Cherished Cars are trading names of Towergate Underwriting Group Ltd Sandersley House, Upton Road, Poole, Dorset BH17 7AG Tel: 0844 980 8288 Fax: 0844 980 8289 www.towergate.co.uk/cherishedcar Registered Office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN Registered in England No. 4043759 Authorised and regulated by the Financial Services Authority 6528/175/G/06.12/14363
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