insurance

[olblu66]

Can you please tell me who carries your cobra insurance ? I have Infinity and i pay a premium of 750.00 a year on a 77,500 agreed value and a 6000 milage plan. Thanks.

[Jim Harding]

I have Grundy, who writes for Philadelphia Insurance Co. I paid $912 for two cars, $108,000 total agreed value coverage. Though not noted on my policy, I believe Grundy has no mileage restrictions.

[pgermond]

I use State Farm. Full replacement value ($45k), $380/yr.

[Aggressor]

Hagerty is $990/year for $75,000 agreed value.

[Justin Upchurch]

Phil - Watch out on State Farm, it is stated value or market value, NOT agreed value.

My wife is a broker and writes my insurance through American Modern. 50K in value, and I think it is about $560 per year. Most policies run $500 to $800 per year.

Justin

[pgermond]

Phil - Watch out on State Farm, it is stated value or market value, NOT agreed value.

My wife is a broker and writes my insurance through American Modern. 50K in value, and I think it is about $560 per year. Most policies run $500 to $800 per year.

Justin

I'm no expert, I just know what I was told and what is on the policy... "Vehicle value $45,000"

[Jim Harding]

Phil, I think the policy must state " agreed value". I think that's a legal term with insurance. If I were you, I would contact your agent and request written verification that indeed you will receive the agreed value of the vehicle should it be determined to be stolen and/or totally destroyed beyond repair. My policy with Grundy, and others I've used have all stated "agreed value" on the declaration sheet.

[Justin Upchurch]

Jim you are correct.

A "stated value" policy with a traditional carrier (State Farm, Allstate, Farmers, etc.) is just that, you are stating it to be worth X amount. The carrier will pay up to X amount if the market bears such value, or you have a certified appraisal. The "agreed value" policy means just that, you have already agreed that the insurance carrier will pay you X value.
Where a stated value policy goes wrong is when the adjuster sees a car similar to yours and it is selling for less, you will have to jump through hoops to get them to pay more.
I have a friend that went through this on his 32' Ford that was rear ended. State Farm did eventually pay, but it took a couple of months of back and forth to prove the value.

Justin

[pgermond]

Here is what I was told -

State Farm uses an outside company to determine the value of a vehicle with a specialty vehicle like yours they generally hire an appraiser and you always have the option of hiring your own appraiser if the value determined is different than you feel it would be.

I'm satisfied with this.

[Jim Harding]

Phil, how the insurance company comes up with the vehicle value is immaterial to the agreed value issue.

Most insurance companies that DO NOT offer AGREED VALUE policies will depreciate your vehicle, just as it does to your daily driver.

What you have is usually defined as a STATED VALUE policy and is subject to depreciation.

EVERY agreed value policy I have ever had, has actually gone UP in value each renewal period. In fact, I just renewed my policy with Grundy and my older Unique increased by $800 and the newer one by $1400 of agreed value. I DID NOT request the increases, that's just part of the policy!

I think you are making a big mistake by just letting them determine the value of your car and not ensuring that you will be paid that amount (read NO depreciation) in the event of total loss today, as well as years down the road. And like most agreed value policies, it should have an inflation clause that increases the value of your car.

I have no axe to grind with State Farm, I'm just trying to give you hard facts concerning the different levels of insurance that are available to you. You might rethink how satisfied you are with what they told you.
Good luck