Insurance "Agree Value" vs. classic insurance appraised value

[ilikeike]

I don't see how you would ever want anything other than "agreed value" on a custom car/hot rod or a boat.

[ADY]

Originally Posted by ilikeike

I don't see how you would ever want anything other than "agreed value" on a custom car/hot rod or a boat.

thanks, that's what my gut is telling me, just wasn't sure what more seasoned classic cars owners have experienced.

thanks!
-Adam

[214Chevy]

Doesn't most classic car insurance companies ask you how much do you want to insure the car for? Wouldn't that be "agreed value" so to speak? As long as it's not some outrageous amount like $250k for the super-builds, they don't ask for anything but 3-4 pics of the car from all sides/angles. If asking for a value of...let's say,$30K...then they don't ask for appraisal reports, receipts, etc. I insured my Camaro for $60k and they asked me what warrants that amount and to justify said amount. So, I emailed them a few receipts. At least this has been my experience with Grundy and Phoenix, a local company here.

[im4u2nvss]

I use state farm. Had to get appraisal then we used that number as our "agreed value". In the event of a total loss, they will pay out the agreed amount.

[Musclerodz]

I would stick with agreed value, but move away from hagerty. if you read the fine print, they would prefer you never drive your car. grundy is better than hagerty, I used safeco because they had no mileage restrictions.

[214Chevy]

Originally Posted by Musclerodz

I would stick with agreed value, but move away from hagerty. if you read the fine print, they would prefer you never drive your car. grundy is better than hagerty, I used safeco because they had no mileage restrictions.

Right!! I have Grundy on my Chevelle and Phoenix on my Camaro because they were cheaper than Grundy. LOL!!

[ironworks]

I have a customer with a super high end camaro built like 5 or more years ago by a fancy builder. It was super expensive.

The owner had some kinda insurance that he had to call and activate the policy when he drove the car. It had some mega hp twin turbo engine.

Well the car had been back to the builder quite a few times for repairs and redesign of some things. And this time it was back at the builder and they were out test driving the car and some how lost control of the car and it hit a guard rail and burned completely to the ground. Like unrecognizeable. A complete and total loss. SCARY

The owner was notified a day or so later and on the following Monday found out his insurance would not cover the car at all. Multiple reasons. So far the shop that was test driving the car in their possession had proper insurance but it has been a fight and of course the insurance company is looking for any way to reduce the value of the car. The owner of the camaro has been grilled by an investigator wanting to see if the owner of the car is hurting for money or anything they can find to lower the value or get out of paying the claim. The owner just wants his car back or his money back.

Its a terrible situation. And when the dollar amounts get really high so does the fight to pay the claim.

Do your home work and pay the money for the insurance you want. Insurance companies ideally would like you to pay your premium and they never have to pay the claim and when and if you have a claim try to get you to settle for the least amount.

[camcojb]

Originally Posted by im4u2nvss

I use state farm. Had to get appraisal then we used that number as our "agreed value". In the event of a total loss, they will pay out the agreed amount.

That is not true. You agreed to a number they use to set the cost of the insurance. It is NOT a guaranteed payout though, they can still look at comps and adjust accordingly. Look in your policy for the words "actual cash value".

State Farm doesn't have a true agreed value policy, it is stated value. Stated Value is coverage that reflects an amount that is “stated” at the onset of the policy. You tell your insurer what your car is worth (with proper documentation) and it is insured for that amount. The caveat here, however, is that the insurance company can choose to pay you either the Stated Value or the Actual Cash Value, whichever is less.

Alternatively, Agreed Value, coverage primarily offered by specialty insurers, is based on the proven value of your car as determined by you and the insurance company, according to appraisals, photos, or other relevant documentation. With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-upon value in the event of a covered total loss.

[im4u2nvss]

Originally Posted by camcojb

That is not true. You agreed to a number they use to set the cost of the insurance. It is NOT a guaranteed payout though, they can still look at comps and adjust accordingly. Look in your policy for the words "actual cash value".

State Farm doesn't have a true agreed value policy, it is stated value. Stated Value is coverage that reflects an amount that is “stated” at the onset of the policy. You tell your insurer what your car is worth (with proper documentation) and it is insured for that amount. The caveat here, however, is that the insurance company can choose to pay you either the Stated Value or the Actual Cash Value, whichever is less.

Alternatively, Agreed Value, coverage primarily offered by specialty insurers, is based on the proven value of your car as determined by you and the insurance company, according to appraisals, photos, or other relevant documentation. With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-upon value in the event of a covered total loss.

from state farm
"State Farm® offers agreed-value policies which means if the vehicle experiences a total covered loss, we will pay this agreed-upon value rather than the actual cash value of the car"

Originally Posted by camcojb

Alternatively, Agreed Value, coverage primarily offered by specialty insurers, is based on the proven value of your car as determined by you and the insurance company, according to appraisals, photos, or other relevant documentation. With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-upon value in the event of a covered total loss.

This is the process that I had to go thru with state farm. Appraisal, tons of photos then agreement on value.

[camcojb]

Originally Posted by im4u2nvss

from state farm
"State Farm® offers agreed-value policies which means if the vehicle experiences a total covered loss, we will pay this agreed-upon value rather than the actual cash value of the car"




This is the process that I had to go thru with state farm. Appraisal, tons of photos then agreement on value.

Thanks for the info, that's something new. They are like Hagerty, they don't want you to drive the car much. Personally I would be wary only because they list specific events they cover. If you were just out enjoying a ride on the weekend and had an accident, would they cover it at full value if you couldn't document a car show or event you were attending.

Here are some important conditions for classic car insurance eligibility:

Your antique or classic car must be used on a very limited basis, such as exhibitions, club activities, and parades or similar events.
You need to have restored, maintained, or preserved your antique or classic car or it must be actively undergoing restoration.