A customer requires pre-insurance valuation for the purpose of paying accurate premiums during insuring the vehicle. The insurer requires this value to enable them calculate accurate premiums and avoid losses in revenue due to under estimation of values.
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. Under pre insurance valuations, nonstandard features of the vehicle that could escalate the risk of losses/ claims are advised.