Insurance for Cobras

[Matt_Wheeler]

Originally Posted by danc30

Agreed value is what you and the insurer "agree" the value is. With Robbin, send him copies of the large purchases, engine, kit, tranny, and tell him what you plan to do or have already done like paint, mods etc. You and he will then agree on what it should be.

Midwest also automatically raises the agreed value each year for inflation.

If my car is totaled or stolen or something else, and it's a total loss, I get the Agreed value. Not what they think I should get.

Not sure, but I think stated value is what the market will bear at the time of the incident for other like cars.

Stick with agreed value and take Midwest into consideration. Robbin is very easy to work with.

He was in London last year.

Dan

Actually, "agreed value" and "stated value" are nearly synonymous terms. The type of coverage you're referring to is called "ACV" as stated above. Actual cash value is garbage for classic vehicle because there's a depreciation factor involved and really isnt even offered on any classic car policies that I know of. Both agreed and stated value is where you inform the insurance company how much the vehicle is worth in your opinion and it becomes the value you're given if something should happen.

Actual cash value is what most normal auto policies have, which is where the company gives you what the car is worth minus depreciation for mileage and usage. That's not at all something that applies to a classic car policy. The whole point of a classic car policy is that each vehicle is unique in it's build and parts and it is therefore "stated" or "agreed" that the value is X dollar amount based on the unique modifications and upgrades that each owner decided to use. While sometimes stated value policies can account for depreciation, this is hardly the case for classic vehicles that tend to see an appreciation with age and care of the vehicle.

Show me 5 1967 Cobras and I'll show you 5 extremely unique vehicles that each need their own customised insurance policy. Each owner decides to upgrade their vehicle in different ways and these companies understand that. And yes, they do need a list and valid photos of all modifications in order to properly replace the vehicle should a total loss occur.

I have much knowledge on this and many other insurance related topics, I would be glad to help clear up any confusion. Just feel free to ask me. And when I said that Hagerty gives stated value, that was a misnomer. They offer only agreed value, I just ran a quote for a gentleman with an agreed value policy and zero deductibles and the premium was amazing. Just wanted to apologize for my mistake and to make that correction. Happy hunting, everyone.

[jwd]

Originally Posted by Matt_Wheeler

Actually, "agreed value" and "stated value" are nearly synonymous terms.

For someone who sells insurance, I'm surprised that you would make such a statement. Nothing could be further from the truth. Talk to anyone that is knowledgable on the subject and you'll find that they are two very different types of policies. I don't sell insurance but I've been insuring my collector cars for almost 40 years so I'm well aware of the differences. You should be too.


This is from Grundy's Insurance.

"There is a huge difference between our Agreed Value policy and a Stated
Value policy. Some people (including insurance agents) mistake Stated Value for Agreed Value. And, that's a big mistake. If you buy a Stated Value policy and experience a total loss or have your car stolen, you may learn the hard way that your car isn't covered properly. Stated Amount forms say that the insurance company will pay the lesser of: a) The Stated Amount, b) the cost to repair the vehicle that doesn't exceed the Stated Amount or c) the "Actual Cash Value." And, with that third statement, a claims adjuster is
allowed to settle your claim for LESS than the Stated Amount! And, this is why all collector car owners need a Grundy Agreed Value policy.


Jim

[mongoose7]

I have Mid-West Classics. Robbin is a car guy, easy to deal with. State farm wanted ALL the business. Home,daily drivers and cobra. I don't want my toy car lumped in with my daily deer dodging driver. I also have 1990 Cadilac Allante insured with Hagerty. They would not write the cobra???
Steve PS cad is for sale

[Matt_Wheeler]

Originally Posted by jwd

For someone who sells insurance, I'm surprised that you would make such a statement. Nothing could be further from the truth. Talk to anyone that is knowledgable on the subject and you'll find that they are two very different types of policies. I don't sell insurance but I've been insuring my collector cars for almost 40 years so I'm well aware of the differences. You should be too.


This is from Grundy's Insurance.

"There is a huge difference between our Agreed Value policy and a Stated
Value policy. Some people (including insurance agents) mistake Stated Value for Agreed Value. And, that's a big mistake. If you buy a Stated Value policy and experience a total loss or have your car stolen, you may learn the hard way that your car isn't covered properly. Stated Amount forms say that the insurance company will pay the lesser of: a) The Stated Amount, b) the cost to repair the vehicle that doesn't exceed the Stated Amount or c) the "Actual Cash Value." And, with that third statement, a claims adjuster is
allowed to settle your claim for LESS than the Stated Amount! And, this is why all collector car owners need a Grundy Agreed Value policy.


Jim

This is true and I'm incredibly sorry for my error. I appreciate you pointing this out to me. Although the only companies I offer have Agreed Value policies, I will continually be on the lookout to make sure I never sell a single stated value policy as long as I'm an agent. I apologize for my mistake.