MG T-ABC

Car insurance. Is this a rip off? I`ve just been offerred the opportunity to renew a MGTF policy which has a premium of just over £61 but with an "Arrangement fee" of £49plus. Is this really justified. They claim that membership of various car clubs is of benefit. I wonder if clubs have ever considered dealing directly with a Lloyds Group?

We don't have anything like that over here so I had to look it up. It sounds like a scam to simply make more profits. Have you looked into specialty coverage like Haggerty? If anyone has a fair policy for a classic in the UK, it's probably them.

Hi Steve, The existing brokers are specialists however I went to another and got an identical deal for a fraction over £71. You can guess who my other cars will be with on renewal. Probably my families as well. (10 classics in total)

The attitude of many car insurance companies and road side assistance companies in the UK when it comes to renewals is a joke. They show very little respect for existing customers - in most cases it is a bad move to simply accept their renewal quote as a 5 minute call to the same insurer most often gets the same thing for a lower cost. The most extreme example that we have seen recently is our multi-car family road side assistance with the RAC. This year the premium jumped by over £100 and when we phoned to say that we were cancelling the policy we got a near 50% discount on the total premium. As a loyal customer over many years we should not have had to make that call.

The other issue and a major variant on insurance is the true replacement value! Today it is imperative that these aging cars are valued correctly and therefore insured appropriately. Hagerty are excellent as they tell it as it is. Helped by written evaluations or proof of purchase cost, or similar sale/sold prices they will use a scale to give you a premium. It is inevitable as values rise, premiums will rise! I think you just have to reason with yourself to how much you value your T ... after-all you'll know how much you have put into!
I had/have a similar rolling discussion with the RAC Steve; we have breakdown & return to home for us both, not the car but us wherever we are or what ever we are driving ... I have been with the RAC since 1988, yes 1988 but every time I get my annual premium it goes up 30-40%. Last year they wouldn't reduce the premium to an acceptable 5% increase but did allow it to be extend coverage for 18 months ... which now last until July 2020 ... it'll be interesting to see what premium I get then ... should be circa £150pa or not!

Good point about valuation. When I got my TC for total restoration I bought 'off the road' insurance to cover it in case the garage burnt down as it would not have been covered by my house contents insurance. As I gradually restore the car its value will be going up significantly (hopefully!!) so I make sure that I increase the valuation with the insurance company each year.