Insurance Fixed Value

[motordean]

What is the right "fixed value" I need to have on my insurance policy? I inquired about raising the value up yesterday and immediately was asked what I paid for the car. I feel that it should not matter what I paid, but what I would have to pay to replace it....right?

[danc30]

YOu should've bought agreed value when you got your policy. Mine goes up 5% automatically every year. Midwest classic

[kevins2]

I just insured my car for the first time with Midwest Classics. They didn't ask for proof of what I paid for it and they provided options based on different declared values and deductibles. I don't have any claims experience with them but they seemed to know the Cobra replica market much better than other companies I spoke with.

[motordean]

Originally Posted by danc30

YOu should've bought agreed value when you got your policy. Mine goes up 5% automatically every year. Midwest classic

I did, I just do not think it is enough. I collector friend asked me if g-d for bid it got stolen tomorrow do I think I can replace it for the insured value....my answer was no, so I believe I am under insured... Will look into midwest classic - thanks!

Originally Posted by kevins2

I just insured my car for the first time with Midwest Classics. They didn't ask for proof of what I paid for it and they provided options based on different declared values and deductibles. I don't have any claims experience with them but they seemed to know the Cobra replica market much better than other companies I spoke with.

Thanks, will call them today.

[jhv48]

I guess I'm sort of confused about why some of you insist on getting a stated/declared value on your cobras by the insurance company.

As far as I, and my insurance company, are concerned, my car is worth whatever the market says it's worth at the time of the incident. Do I expect to be able to replace my 4 year old SPF with a brand new SPF if mine is stolen? Of course not. I expect to be able to buy a similarly constructed, four year old, used SPF. And my insurance company agrees with me.

If you buy and insure a $100K Mercedes and it is stolen four years later, you're not going to get enough money to buy a brand new Mercedes. You'll get whatever your car was worth at the time of the incident. Seems fair to me!

[Cashburn]

Give Mike Smith a shout at Northeast Classic Car Insurance - Classic Auto Insurance

[scottj]

I have Midwest Classic and the highest value they would agree to is a little over half of what I have in it. At least they raise it by 5% per year. I was given the option of having an independent appraiser determine fair market value, but that isn't the same as replacement cost.

The way I look at it, 50 cents on the dollar is a good return when I sell a race car and when I've wrecked race cars the return was zero. Though it's not a race car, I can live with 1/2 coverage...

[marklotus]

Originally Posted by jhv48

I guess I'm sort of confused about why some of you insist on getting a stated/declared value on your cobras by the insurance company.

As far as I, and my insurance company, are concerned, my car is worth whatever the market says it's worth at the time of the incident. Do I expect to be able to replace my 4 year old SPF with a brand new SPF if mine is stolen? Of course not. I expect to be able to buy a similarly constructed, four year old, used SPF. And my insurance company agrees with me.

If you buy and insure a $100K Mercedes and it is stolen four years later, you're not going to get enough money to buy a brand new Mercedes. You'll get whatever your car was worth at the time of the incident. Seems fair to me!

What you want is an "Agreed Value" policy, You establish the value upfront and pay premiums based on that value. If you have a claim, there is no disputing the value since it was agreed to in advance. This a common method of insuring collector vehicles.

[427 ISH]

I have a declared value. I agree, leaving to "Replacement" value, based on the market will get me another Cobra - However, it will not be "My Cobra". I know where every wire and nut is on mine. If totaled, I will want that same value. I am paying a bit more for the overstated value (versus market value), but I will want to build another if total loss occurs, not buy one.

[kevins2]

Originally Posted by jhv48

I guess I'm sort of confused about why some of you insist on getting a stated/declared value on your cobras by the insurance company.

As far as I, and my insurance company, are concerned, my car is worth whatever the market says it's worth at the time of the incident. Do I expect to be able to replace my 4 year old SPF with a brand new SPF if mine is stolen? Of course not. I expect to be able to buy a similarly constructed, four year old, used SPF. And my insurance company agrees with me.

If you buy and insure a $100K Mercedes and it is stolen four years later, you're not going to get enough money to buy a brand new Mercedes. You'll get whatever your car was worth at the time of the incident. Seems fair to me!

I'm not an insurance expert by any means, but I don't believe these cars follow the same depreciation rules as a "normal" car. The market is certainly a factor, but it is more likely that your Cobra replica will be worth close to its original value over time (or even more, possibly) than your daily driver would...or even a Mercedes.

[scottj]

Originally Posted by marklotus

What you want is an "Agreed Value" policy, You establish the value upfront and pay premiums based on that value. If you have a claim, there is no disputing the value since it was agreed to in advance. This a common method of insuring collector vehicles.

You have to look at how they define "agreed value". Midwest Classic wouldn't "agree" to over market value no matter what I was willing to pay.

[motordean]

Originally Posted by Cashburn

Give Mike Smith a shout at Northeast Classic Car Insurance - Classic Auto Insurance

Will do - thanks.

Originally Posted by 427 ISH

I have a declared value. I agree, leaving to "Replacement" value, based on the market will get me another Cobra - However, it will not be "My Cobra". I know where every wire and nut is on mine. If totaled, I will want that same value. I am paying a bit more for the overstated value (versus market value), but I will want to build another if total loss occurs, not buy one.

That's what I'm talking about!

Originally Posted by kevins2

I'm not an insurance expert by any means, but I don't believe these cars follow the same depreciation rules as a "normal" car. The market is certainly a factor, but it is more likely that your Cobra replica will be worth close to its original value over time (or even more, possibly) than your daily driver would...or even a Mercedes.

Agreed 100%

Thanks everyone for your feedback!

[jhv48]

Originally Posted by kevins2

I'm not an insurance expert by any means, but I don't believe these cars follow the same depreciation rules as a "normal" car. The market is certainly a factor, but it is more likely that your Cobra replica will be worth close to its original value over time (or even more, possibly) than your daily driver would...or even a Mercedes.

That's my point, if the market goes up, so does the replacement value of my car. If it goes down, so does mine. Still based on real world prices, and I don't pay for an inflated agreed value. What if the actual value of your car exceeds the agreed value that you originally signed up for? Do you only get the lower amount?

[kevins2]

As was said in posts 2 and 7, the declared value goes up each year. Talk with your insurance agent to find out what they're willing to do.

[marklotus]

Originally Posted by scottj

You have to look at how they define "agreed value". Midwest Classic wouldn't "agree" to over market value no matter what I was willing to pay.

I submit to my insurance company (Hagerty) every year my estimated value. It has to be reasonable for the car otherwise they won't agree to it. My premium is based on the agreed value. If I have a claim, there is no argument about the value. It has already been agreed.

Stated or Declared value is a one-way conversation. You tell them, state, declare what you think the car is worth. It is noted in the record. If you have a claim, the value is then up for review, discussion, estimation, negotiation, etc. The discussion takes place after the claim is made. The insurance company can then say that your car is not worth the stated value and you have a disagreement.

[Cashburn]

Before giving advice on this, have you ever been involved in a claim?

From experience, opt for agreed value at what you feel you can replace your car for without lifting a finger, then add alteast 5k for protection. Pay the premium that affords this coverage. Or roll the dice...

It's a risk pool. You can hang in the deep end or wade in the shallow end. But one side you get more pee.

[scottj]

Originally Posted by marklotus

I submit to my insurance company (Hagerty) every year my estimated value. It has to be reasonable for the car otherwise they won't agree to it. My premium is based on the agreed value. If I have a claim, there is no argument about the value. It has already been agreed.

Stated or Declared value is a one-way conversation. You tell them, state, declare what you think the car is worth. It is noted in the record. If you have a claim, the value is then up for review, discussion, estimation, negotiation, etc. The discussion takes place after the claim is made. The insurance company can then say that your car is not worth the stated value and you have a disagreement.

When I was with Hagerty that's how it worked for my policy as well, in fact, that's how it works with my Midwest Classics policy now. The only problem is, $53K is all Midwest considers reasonable (unless it's a Kirkham or CSX replica) and Hagerty no longer writes Cobra replica policies. Hagerty doesn't consider them collectable or classic since you can walk into a dealership and buy a new one.

[1795]

Hagerty will write a policy on a replica. I went with Midwest because I was able to negotiate more mileage out of them and reduce some of the other restrictions, of course at a cost. However, both of them were willing to write a policy on my SPF. My two cents on the agreed upon value, I think that you have to negotiate that, Midwest agreed to a value from me without asking to see the sale receipt, there really is no "book" value on these cars and so trying to establish a replacement value based upon the market value can be difficult and that leaves a lot of room for disagreement.

Jim

[jhv48]

Originally Posted by kevins2

As was said in posts 2 and 7, the declared value goes up each year.

So, just posing a what-if here. Suppose you bought a genuine, for real, authentic, Shelby continuation kit car and after Shelby died, you believed the value doubled (as some seem to believe even though he top bid for one at Anaheim mecum was only $95K). Now it gets stolen, and you originally insured it for the price you paid for it (a few years ago) plus the 5% increase every year. Your increase hasn't kept pace with the sudden appreciation of this car. So you would be cheated out of this appreciation because you insisted on an agreed value policy.

On my policy, with State Farm, I would get the current appreciated value of the car no matter how high it went (as long as it could be verified by actual sales figures). You, with the agreed value plus 5% annually, policies would get less.
I think I'll stay where I am.

[marklotus]

Originally Posted by jhv48

So, just posing a what-if here. Suppose you bought a genuine, for real, authentic, Shelby continuation kit car and after Shelby died, you believed the value doubled (as some seem to believe even though he top bid for one at Anaheim mecum was only $95K). Now it gets stolen, and you originally insured it for the price you paid for it (a few years ago) plus the 5% increase every year. Your increase hasn't kept pace with the sudden appreciation of this car. So you would be cheated out of this appreciation because you insisted on an agreed value policy.

On my policy, with State Farm, I would get the current appreciated value of the car no matter how high it went (as long as it could be verified by actual sales figures). You, with the agreed value plus 5% annually, policies would get less.
I think I'll stay where I am.

I think you're combining two different policies. On the agreed value policy, you agree on the value every year and your premium is based on that value,
There is no automatic 5% increase. If your car gets stolen, you get paid the agreed value with no discussion. I just wouldn't want to discuss with State Farm what my car's value was after it was stolen. It's a matter of preference.