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Insurance Fixed Value
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?
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YOu should've bought agreed value when you got your policy. Mine goes up 5% automatically every year. Midwest classic
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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.
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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! |
Give Mike Smith a shout at Northeast Classic Car Insurance - Classic Auto Insurance
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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... |
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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. |
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.
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Thanks everyone for your feedback! |
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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.
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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. |
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. |
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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 |
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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. |
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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. |
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