Project Cars: 1990 Mercedes-Benz W201 190E 2.0 Sportline – Update 8

Booooring. You say.

Booooring. I say.

But sadly, insurance, and more specifically, the right insurance is pretty important in today’s car market.

We’ve all seen (or written) the stories showing once attainable modern classics now asking ridiculous prices. A mixture of hype, nostalgia and popular culture has driven values up, which can be both a blessing and a curse.

On one hand, it is good to know that your prized machine may potentially be worth what you have said you spent on it (or even what you’ve actually spent on it). But on the other hand, the cost of owning your car has probably gone up, too.

In terms of my 190E, I’ve called around to get some quotes on fixing the paint and to perform a transmission service, and well… lets just say in both cases, the COVID-tax on top of the ‘classic Mercedes’ levy has made the word ‘overcapitalise’ one of real concern.

But, in the immortal words of Seymour Skinner, am I out of touch? Could it be that the Mercedes is really more valuable now than when I bought it back in March 2020?

To bring this all home, a simple conversation about the cost of preparing and painting the car had me worried that in the event of an accident, any insurer (mine or otherwise) would simply seek to write the car off for its agreed value rather than incur that spendy combo of COVID-Benzo inflation themselves.

Which is why we’re talking about a very mature subject of insurance.

Before I go on, I’ll preface everything by saying there is no commercial relationship between the insurer and this content. I’m a full out-of-pocket paid customer, and have dealt with their customer service team as any of you would.

With all cards now on the table, I’ll say I have successfully increased the 190E’s insured value.

The Mercedes has been insured with Shannons since I bought it, and despite having a calculated market value at the time of just $4500, I explained that the Sportline option was rare, and the leather interior was rarer, so it was covered for an agreed value of $7500; which was what I paid for the car.

Since then, market conditions aside, I’ve fixed up a few little bits and pieces, and sourced (but still not fitted) the genuine Sportline ‘gullideckel’ wheels and an original cassette storage unit.

With my mindset of ‘original is best’, the car is cleaner, safer and running better than when I bought it, but these are all very hard to quantify. Luckily, the customer service agent at Shannons was happy to help.

The independent investment research company HAGI (Historic Automotive Group International) track a global ‘Mercedes-Benz’ index, using auction sale data to model the brand’s relative performance in the automotive value sphere.

The HAGI-MB index, while down 2.4 per cent on where it was three-years ago, is currently up 4.73 per cent on the same period last year. This index is based on heavyweight performance data, noting the 300SL Gullwing and SLR McLaren Supercar among its key input values.

Fair to note that there is no W201 190E Evolution II data, let alone anything on a lowly 2.0 Sportline, so I am taking a few three-pointed liberties here.

But the brand’s strength stands, and local sales performance suggests that things are on the up, so with a few questions about mileage and condition, we agreed to revalue the car at a much healthier $15,000. Exactly double what it was.

My premium increased accordingly, but where it was about eight per cent of the car’s value, it is now five per cent, and I feel worth it for the peace of mind alone.

The Shannons agent suggested to review the process again once any further improvements were made, to not only account for the car’s condition but to work with what he admitted was a very unpredictable market.

The whole process was done in less than 20 minutes, and a revised policy immediately emailed through.

Given the Peugeot and Lada were also secured for a bargain price, and that I’m probably guilty of encouraging their respective market value increases, it would be worth having those two properly covered too.

I only hope that there’s more of a chance to drive them all soon!

Current Status – Properly insured.
Odometer – 214,257km
Next up – Time for a deep clean.

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