Insurance Fixed Value

[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.

[jhv48]

There's no discussion. They survey the actual selling prices of several cars that are similar to yours and that determines the value. If you think your car is worth more than the others, all you need to do is show them why you think that. Such as: your engine is all aluminum rather than iron, you upgraded the suspension, you added a set of webers, etc. If valid (not just because it's your baby) they will adjust the price upwards to account for your upgrades. It really is just that simple.

How do I know? I handled claims for State Farm for about eight years and not once did I ever hand a guy a check for a stolen/totaled car and have him complain the amount was not enough. Usually, they just took a quick look at the check, pocketed it quickly and hi-tailed it to the bank.

But I'm sure your insurance company does the same.