Agreed value insurance

[sigtauenus]

How does agreed value work?  Is it at all tied to book value?

I'd like to set the agreed value for my fastback at what I have invested in it, ie, what it would cost to build again, vice being tied to the NADA book value which has dropped considerably the past couple years. 

Is this common or allowed with agreed value? 

If the agreed value is above book value, are reciepts required to justify the value?

[SELLERSRODSHOP]

all companies do this differently. some require a vehicle appraisal, with others, you just tell them i want it insured for X amt. of money & you pay based on that. all my older stuff is done this way & it's not that expensive compared to newer vehicle rates.

[70 StangMan]

With my insurance "agreed value " is just what it says. I sent them photos and we agreed on what the value of the car was. If it was totaled or stolen, they pay that amount.  :)

[monkeystash]

From Hagerty's website:

Agreed Value Coverage
Most auto insurers determine what they — not you — believe is the “Actual Cash Value” of your vehicle at the time of the loss. Others may offer a pre-determined, “Stated Value” which covers you “up to” your policy amount minus depreciation. Hagerty offers an “Agreed Value” determined between you and us when you insure your vehicle. You have a total covered loss and that amount is what you receive.

http://www.hagerty.com/us/auto.aspx?id=57740

[KBMWRS]

The best...if using insurance can be called anything good....is that even if they pay out in full, you still keep the car. Unlike regular insurance where they want the title if they 'total' it.

[sigtauenus]

Thanks guys.  I think I'm going to go with Chrome due to the 10,000 mile limit and nothing stating I can't drive to work.  With 10,000 miles I could literally drive to work and local shops and church on the weekends every day of the year.

[sigtauenus]

Ok, what's the deal with Haggerty and "modifed?"

I just checked them out for the principle of having a benchmark quote, and for my 68 Fastback at $35,000, quote was $302 stock and $546 modified.  I tried to find info on their site about modified and the page for it talks about kit cars and ricers.  

I'm not sure what the issue is here, as $35,000 is $35,000 regardless of what parts I bought, and I can replace a T-5 just as easily and for the same price as a toploader.  Probably cheaper.  Almost Except for the 5-speed, almost all of my mods are factory options, such as factory p/s, factory a/c, factory disc brakes, etc.  

Chrome uses independent brokers, so I emailed the guy nearest me in VA and asked for a quote, I'll post that back when I get it for reference.

[monkeystash]

Ok, what's the deal with Haggerty and "modifed?"

Risk.  Modified cars are more likely to cost them money. 

[sigtauenus]

Do you have any idea why?  Is the assumption that the modification really means engine mods for higher HP, which really means agressive driving habits? 

So what they are really saying is that it doesn't necessary cost more to repair, its that if you have a modified car you are more likely do drive agressive and thus more likely to be involved in an accident.

I know its not personal, the numbers, statistically, probably don't lie.

[apollard]

Insurance is all about risk. All insurance companies hire statistics gurus (actuaries) to tell them how likely an accidne tis if you are a 31 yo man in Iowa driving a bone stock civic painted red. Modified cars get raced more (on & off the street), and that results in more accidents & more payouts. So they pay more. 500 hp engines get used--

Dad used to be CFO for an insurance company - good actuarials are the life blood of insurance.

Unless of course, it's medical insurance, in which case it's just arbitrary & overpriced. I know, 'cause the media tells me so---

[monkeystash]

Correct, it's not about the cost of your car.  You become a higher risk driver, as statistically you are more likely to engage in riskier behavior.  This leads to the greater chance of an accident for you and a lawsuit for them.  It's very similar to why rates for a 18 year old kid driving a V8 ponycar are high.  

[daveSanborn]

Ok, what's the deal with Haggerty and "modifed?"

I agree with all of the above statements/comments and would like to add something....

When Hagerty states "modified", they're not talking about AFR heads, a Demon carbuerator or a Griffin AL radiator.... they're talking about NO2, roll cages, wheelie bars, etc.

[sigtauenus]

I agree with all of the above statements/comments and would like to add something....

When Hagerty states "modified", they're not talking about AFR heads, a Demon carbuerator or a Griffin AL radiator.... they're talking about NO2, roll cages, wheelie bars, etc.

That makes more sense.  As I'm sitting here trying to self analyze myself and assess if my high rise intake, Holley carb, and 5 speed are going to make me nearly twice as likely to have an accident or drive like a jackass.  It would seriously help Haggerty to more clearly define stock versus modified on their website.

[monkeystash]

You'll need to talk to a Hagerty rep to determine whether it is "modified" or not.  When I first insured my GTO with them, it was stock but had a different carb and headers.  At that time, that was considered "modified."  After renewing the policy a few years later, I challenged that, and they then allowed it to be considered "original."  My best friend insured his '66 GT recently with them, and it was considered modified because of the T-5 tranny.  I'm not sure there is a perfect definition of "modified", but I wouldn't assume anything. 

[daveSanborn]

When you call them on the phone...... as part of their agreed policy they have a checklist they run through with you.

Roll Cage?

Nitrous?

Empty/not plumbed Nitrous bottle just for show? ( I guess with this one they feel that even if you have an empty/unplumbed NO2 bottle you're still a higher risk)

Street racing?

Sanctioned racing?


You'd better not answer yes to any of the above questions or it will lead to more questions..... and possibly the higher premium. 

[RustyRed]

When I first bought the Mustang I looked at several different options for insurance.  Turns out it was best for me to put it on my ordinary insurance with our other two cars.

Basically, they said if I wanted to insure it for X value then it was this rate, if I wanted to insure it for Y value then it went up to this rate.

They didn't really ask much about the car other than year, whether it has a V8 or a six in it, etc.  I've not bothered to tell them I have since built a 302 with ported GT40's, Holley 600 and so on.  But I was thinking the other day, I probably need to increase the value of the coverage I have on it.

[lethal289]

Basically, they said if I wanted to insure it for X value then it was this rate, if I wanted to insure it for Y value then it went up to this rate.

They didn't really ask much about the car other than year, whether it has a V8 or a six in it, etc.  I've not bothered to tell them I have since built a 302 with ported GT40's, Holley 600 and so on.  But I was thinking the other day, I probably need to increase the value of the coverage I have on it.

Basically the same experience i had.  Except i went with American Collectors.  They wanted to know what i valued the car at, and we went from there.  It helps that i decided to go with classic plates too.  That limits me to 5000 miles a year, but i can go anywhere, do anything.

[sigtauenus]

Chrome just told me $114 per six-months for $35,000 once the car is done, and $268 for right now while it is under construction with a non-Chrome insurer.  I might as well use Haggerty for now while it is under construction at that rate.  I like the rate for the Chrome though.

I have USAA.  Last time I called them on this they referred me out to a counterpart company called American Classic, or something like that, maybe it was American Collectors.  I'll have to ask them again if they will add the fastback to the policy.

[RustyRed]

Basically the same experience i had.  Except i went with American Collectors.  They wanted to know what i valued the car at, and we went from there.  It helps that i decided to go with classic plates too.  That limits me to 5000 miles a year, but i can go anywhere, do anything.

We have similar plates here in Texas that I keep meaning to look into.  I wouldn't mind getting rid of the sticker in the window on mine since I drive it maybe 1K per year.

[lethal289]

Here, we have classic and antique.  Classic still requires a yearly inspection, but no admissions.  Antique has no inspection, but its illegal to drive after dusk. 

[sigtauenus]

We have the same deal here with antique plates, typically black.  No inspection required, but limited driving.  If you are caught by LEO driving outside the restrictions, they can take your plates on the spot revoking your registration.  My club discussed this recently, as well as the token example of the guy with a 70 something dilapidated pickup used as a work truck with antique plates.  LEO pulled the plates, and then the guy drove off.  Then the LEO pulled him over again, and he was arrested for driving a vehicle with no registration.  DOH!


I tried USAA, they said they'll insure my car, but in the case of a loss they'll look up a generic 68 Mustang for book value with no consideration for condition, and they do not offer any kind of agreed value insurance. 

[lethal289]

Since your shopping, it might be worth a comparison.  http://www.americancollectors.com/

[70 StangMan]

Since your shopping, it might be worth a comparison.  http://www.americancollectors.com/

+ 1, That's who I'm with. Just raised the agreed value last year. No hassle at all. (just a little more money)

[silverblueBP]

Holy shinola, I just checked with American Collectors and they want $840/yr :ep I just received my renewal from Grundy and it's only $400/yr. I think I'll stick with Grundy!

[sigtauenus]

I just checked with American Collectors and thought their prices were significantly higher than what I saw earlier today for both Chrome and Haggerty.  Didn't price Grundy yet.

I had a discussion with the Chrome agent regarding modified or stock, and he said the modified premium would cost more, so it would be $132 instead of $114 every six months.  Wow, that's compared to twice the premium if you call it modified with the other two I priced today.