Types of professional car valuations and their purpose

Valuation is a process of estimation of the worth of an asset in monetary terms, at a particular time for a specified purpose by a professional. Here are some scenarios of different types of valuation:

Pre-Insurance Valuation
a) A customer requires pre-insurance valuation for the purpose of paying accurate premiums during insuring the vehicle.
b) The insurer requires this value to enable them calculate accurate premiums and avoid losses in revenue due to under estimation of values.
c) The pre insurance condition is paramount to an insurer since it will enable them to make an accurate judgement when evaluating the risks involved when underwriting such businesses.
d) Under pre insurance valuations, nonstandard features of the vehicle that could escalate the risk of losses/ claims are advised.
*Pre-insurance inspection is usually paid for by the insurance company.

Technical Brief Valuation
a) Technical valuation is a process of determining accurate value of motor vehicles/machineries/earth movers//motor cycles for the purposes of buying, selling and disposals of obsolete equipment.
b) This report is also used in case of surety bonds in a court of law and whenever the registration book and the vehicle is used as a collateral to acquire loan facilities.
c) The report is technical and covers briefly all the aspects of the vehicle for that intended purpose.

Full Mechanical
a) Full mechanical valuation is used to identifying impending mechanical faults which is crucial to prevent the vehicles from malfunction. This particular report is detailed and covers all the aspects of the motor vehicle.
b) The purpose is to give a comprehensive report on body condition, electrical, suspension systems, transmission, steering, engine and traction.

Pre Theft/Pre Accident
a) Pre theft valuation is a valuation conducted based on vehicles log book and research from markets of the particular vehicle, after either the whole vehicle or parts have been stolen from the vehicle.
b) Pre theft is to determine the value of the vehicle before it was stolen for adequate compensation.

Accident Assessment
a) This is an inspection conducted on a vehicle after the loss has already occurred.
b) The purpose is for claim settlement by advising on cost of restoration, nature of the accident, pre-accident condition and salvage values where the vehicles cannot be restored either due to severe damages or high replacement costs.

Pre Fire
a) Pre fire valuation is a valuation conducted based on vehicles log book and research from markets of the particular vehicle, after either the whole vehicle or parts have been destroyed by fire.
b) Pre fire is to determine the value of the vehicle before it was burned up for adequate compensation.

Inspection of Motor Vehicle Components
a) Inspection of components is done when there is need to have an independent opinion regarding a particular failure. This could be as a result of accident or damage during repair
b) The components could include: Tyres, Engine, Suspension, Body damages, etc.

The estimated cost of accessing these services:

• Brief inspection & valuation:
– Small cars up to less than 2 tonnes, e.g. pickup/trucks and tractors KES 4,000/-
-Vehicles above 2 tonnes to 5 tonnes –KES 4,500/-
– Heavy Commercial trailers/trucks (above 5 tons tare weight)-KES 5,500/-
– Motorcycle –KES 2,000/-

• Full Mechanical inspection & Valuation
– Cars and pickups less than 2 tonnes & tractors – KES 4,500/-
– Vehicles above 2 tonnes up to 5 tonnes–KES 6,000/-
– Vehicles above 5 tonnes –KES 6,500/-

• Inspection of small components e.g. tyres, engine and road testing, Checking if repair work recommended in a previous full Inspection is done satisfactorily –KES 4,500/-
• Roadworthiness inspection (For all vehicles) – KES 2,000/-
• Accident Assessment (For all vehicles)-KES 7,500/-
• Inspection following accident repairs (for which assessor’s report must be provided). Pre-accident /pre- fire /pre- theft valuation -KES 5,000/-
• Updating brief valuation to full mechanical inspection–KES 2,000/-
• Non-Standard equipment inspection; determined at request

These services are sourced from licenced valuers like the AA of Kenya