Reply to "Insurance Woes"

First of all, you are most at risk in a worst case scenario, ie, your car gets totalled. Secondly, the insurance company does not work for you; they work for their shareholders, who value profits. And your agent is not the insurance company.

Stated Value: In the event your car gets totalled, the insurance company will pay what they consider to be the market value but not to exceed the Stated Value. Essentially the same as a regular insurance policy but it limits the amount they have to pay should the value of the car be more than the Stated Value. If they determine the market value to be $5,000 less than Stated Value, you loose. If the market value is $5,000 more than Stated Value, you loose. If you have more than market value invested in your car, and I'm guessing we all do, you lose. Remember, a car totals when the cost to repair is 60-70% of market value. You loose here, too.

Agreed Value: Each year, you and the insurance company agree on the value. So, if the car gets totalled, you get the Agreed Value, no more, no less. Agreed Value policies can be for more than the car is worth at market value. This is especially important in the collector car market where you have done any type of restoration because you can insure what you have invested in the car, as long as that amount is reasonable and they will agree on the value. So if your car is worth $40,000 but you have invested $45,000, you can insure it for the $45,000 to cover what you have in the car.

Since Agreed Value policies are generally not any more expensive that Stated Value policies, and in some states can be considerably less, why take the risk.