Insurance Valuation

The market for our cars seems to be in an upward rise. If it lasts, flattens out or goes back down is anyone's guess.

I recently called my State Farm rep (Yes, it is an agreed value policy), who checked with his underwriters. They were fine with an upgrade to $85K, and said $100K for a perfect example would not be unreasonable.

The price difference usually is not much once you have the basic policy, so I would simply try to get a high valuation, go with whatever the insurer will accept.

A quality appraisal would be good to have, also.

Whoever you choose, make sure your policy is "agreed value" and not "stated value".

Larry

I'm with the AIG Barrett Jackson program and just renewed. I increased my GT5 from $75K to $90K and they had no problem. I did provide a couple of links to similar recently sold or for sale late model cars.

Julian

I'm with Hagerty and just increased my coverage from $50K to $75K, and they had no problem or question with the value. As a matter of fact, they said it's right in line with what they think the value is. And FWIW, a fellow PCNC member upped his coverage several years ago from $50K to $100K after an accident that came in with a $50K repair estimate. Hagerty wanted to total the car, but the owner realized that his car properly fixed for $50K would be a much better car than he could buy for $50K to replace it. So they went ahead and paid for the repairs and he subsequently increased his coverage to make sure there was sufficient coverage available to properly fix any future incident or replace it with a comparable car if it had to be totaled. And, Hagerty had no problem with that valuation either.

Thanks for the feedback guys--appreciate it.

My current coverage is at $70k and i asked for an increase to $100k. Sent the rep some recent pictures and waiting to hear back. If accepted, the increase will be about $350/ year which seems a bit high.

Hagerty just quoted me $1,675 a year. $50 collision deductable.

No limits other than it is not an everyday work car oh and no licensed drivers in the "household" under 30. That one sounds a little strange? It used to be 25-26 was the majic number?

$100,000 agreed value or in their terms "guaranteed value".

No questions asked. Just write the check.



You have to be careful not to set the value too low. The reason is because of the "totalled out" issue at over 40%.

It is EASY to spend $100,000 in the body shop to redo the front of the car. 40% would mean that you were totaled out at $40,000. Watch that number. It's critical. $75,000 because of that situation is under insured.

[QUOTE]Originally posted by PanteraDoug:
Hagerty just quoted me $1,675 a year. $50 collision deductable.QUOTE]

That seems steep, I pay $1,411/yr for 2 Pantera's, a GT40 replica and the Ultima, total insured value of $320K

quote:

The reason is because of the "totalled out" issue at over 40%.

Not my experience.

My 'accident' in 2511 resulted in an estimate of about $31K with a $42K policy.

My State Farm claims adjuster shared their usual totaled % mark was 70%. They wound up paying, without a whimper, about 78%.

But as Doug pointed out, there is a point where the car is totaled, and a higher insured value will help you stay away from that issue.

Larry

This is a VERY timely discussion for me. Renewal/re-evaluation time for me is right now.

There may be several things happening here. My zip code may be the most significant data I think?

Hagerty for me has consistently been around 2% of "agreed value". Joules, you are around .4%.



I am about to have what I hope will not be a blow out, or a blow it out of your a.., discussion with my State Farm Agent.

One issue is whether or not I have a "stated value" or an "agreed or guaranteed" value policy.

He says it is "agreed" value.

I am being told by others in NY that SF does not write "agreed value" in NY and that I am being "deceived" knowingly or unknowingly by my agent.



The other thing is the rates being offered to me by Hagerty are much higher than I have heard from others like you Joules.

I am very interested to hear both what Joules and Larry have said about this?

Larry because he has or HAD State Farm "stated value" collision claim and Joules because of the low amount paid to Hagerty?

Would it be an imposition to ask either of you for at least your zip codes related to your policies?



I personally would love to pay would you are Joules but at least I want to understand why I seem to be getting the shaft on this?

With at least your zip codes I can inquire with Hagerty as why for me it is so much more expensive?

With SF I need to settle the type of coverage once and for all, and I have a really good adviser who is a body shop owner for 40 years and worked for both Allstate and SF.

I could be mistaken but I am pretty sure that when my SHO got totally out the "first time" (it's on it's third total now) the collision damage was around 45% and that was over the limit.

The other parties insurance paid eventually and didn't want the car.

The other thing I am looking at is this is three different states. California, Nevada, and New York.

I am sure that all of these numbers vary so much because of that? My assignment is to find out exactly why.

I also need to verify what happens on a "collision claim" on a "classic policy".

What EXACTLY the "total out" percentage is going to be on an "agreed value OR stated value policy"?



This is going to take awhile but I AM going to find out EXACTLY why these agents are double talking me?

Thanks for the input. I'll keep everyone posted on what I find out about this?

Doug,

My insurance is through the Barret Jackson program (underwritten by AIG), zip code 895XX in Reno NV. I do believe that the four cars offer a discount as they recognize you can only drive one at a time, that said if my house went up in smoke, I'd be claiming for a total loss.

Julian

quote:

Larry because he has or HAD State Farm "stated value" collision claim

zip code 93711

I recently confirmed with my agent that my current policy is still "agreed" value.

Larry

Larry, paragraph #3, "we will use all this information along with other published resources to establish an accurate dollar value".

Some state it this way, "In the event of a total loss we will pay either the stated amount or the actual cash value, whichever is less".

That IS a STATED VALUE POLICY.



In an agreed or as Hagerty calls it, a "guaranteed value", there is no need to establish a "market" or "actual cash value".

The total amount is what you agreed the value of the vehicle is.

You i SUSPECT are being told by SF, as am I, exactly the same, BUT the symptoms are leading to a diagnosis of "stated value".



There is no need to do that in an agreed/guaranteed. This is in fact an escape clause to let the insurer get out cheaper than what you though you were covered for.

THIS IS EXACTLY what my issue is with SF and I may need to hire a Law Firm to press SF to issue a written policy that states exactly what they will do in the event of a total loss.

So far it is too early to say that they refuse to do so, but it really looks like that IS AND WILL BE the case?



Ultimately I think that all the documentation that they offer should be saved, including an audio recording of what your Agent (my agent) tells me BECAUSE if at any point for any reason on any claim under this policy, BECAUSE I think,

>>> IF they have fallen to "determining the actual cash or market value" of the vehicle to determine what they will pay, then this is just a case of 100% fraud on their part.<<<



At the moment my Agent is dancing around me and was supposed to call me back EVERY DAY this last week on this exact subject.

What I predict he will tell me is that "he is sorry but has been very busy" but I suspect the reality is that he is in contact with "the main office" waiting for an answer on my questions and an explanation. I feel I can almost guaranty that?

All I can say to anyone, and what many of you will say to me, (so save the effort) is "Doug, there are other companies besides SF AND Hagerty".

Yup. Let's see what my SF Agent says to me when I tell him that too? Stay tuned, this may be developing into a "mini-series"?



Joules. Thank you for your information. That is "only backgound" at the moment but may become significant shortly.

I try to do as much research as I can in advance. SOMETIMES it helps, sometimes it just confuses the matter.

At the moment though the crux of the matter is the "determining market or cash value" clause in the contract.

For what its worth, if I get the increase in agreed value to $100k my yearly premium will be around $1,300....for the one car.

Im currently with Heacock Classic Ins and the agent confirmed that my policy is agreed upon. Also went through the policy again and confirmed it clearly states agreed upon in the dec sheets.

Tho I guess we technically havent "agreed" yet since they havent gotten back to me on my request to increase lol.


The price seems very steep vs what some others are paying... but wondering if its partially due to the fact that Im in NJ.

Hope to hear back Tuesday and then will call up Haggerty to compare.

quote:

Originally posted by doobwaa:
For what its worth, if I get the increase in agreed value to $100k my yearly premium will be around $1,300....for the one car.

Im currently with Heacock Classic Ins and the agent confirmed that my policy is agreed upon. Also went through the policy again and confirmed it clearly states agreed upon in the dec sheets.

Tho I guess we technically haven't "agreed" yet since they haven't gotten back to me on my request to increase lol.


The price seems very steep vs what some others are paying... but wondering if its partially due to the fact that Im in NJ.

Hope to hear back Tuesday and then will call up Haggerty to compare.

Well that'still lower than the $1,600 Hagerty quoted me?

I think what MIGHT be happening here though that no one is aware of is that there may be competition going on between these companies.

When I first got into this maybe 25 years ago, there were "rumors" of fraud on "collector" cars.

I do remember being "refused" on my Shelby from around 1975 or so. That was Heacock. They would never take the car.

When Hagerty showed up, there was no problem. I like many was concerned with setting too high of a valuation on the car and therefore being rejected because of that.

When I first went to Hagerty there was a big pause (I had them on the phone) they interrupted and said "are you sure that's the amount you want?" "We are showing a fair market value of that car of $125,000, which we would have no problem writing".

I was just looking for $50,000 and frankly couldn't afford to pay for the 125.

This is really what is happening to me all over again. At 1600 a pop I can't insure very many cars?


State Farm is $575 a year BUT the question really is how they determine the total value of the car in a total loss? They are being evasive on this subject but could very definitely be the reason they are 1/3 the cost of even Hagerty?


"You" also want to know what they do with your car in a total? If they let you keep it then you could write the policy for a lower amount and figure you can sell the salvage yourself?

"I'm working on this".

Just an update- Heacock agreed to up the agreed value to $100k on #9311….only needed to send a few recent pictures.

Premium now $1,190.00 …. a bit less than originally expressed.

Doobwaa, I just checked my policy with Condon Skelley. I also live in New Jersey, and while I have my car valued at half of what you have, I'm only paying $350/year. Double that and its still way below what you're getting quoted.

"Somethin'" definitely goin' on here?

Keep in mind I'm in Canada so it is probably not a good comparison.
Calgary has to be the crash capitol of Canada and my premiums would reflect that. I know my regular insurance rates are ridiculously high.

I'm $565 / year for a $75,000 agreed value.

Doug M