Insurance - 'Fair Market Value'

[Kingman]

While reviewing my policy renewal, I was wondering what the Forum's thoughts are on insurance and 'Fair Market Value' for the GT.

I have a standard automotive policy and I was going to look into the specialist policies from Hagerty, Grundy, Heacock, etc..

We all know bad things happen, so I am curious as to how others have approached this. Are you all going with;

Agreed Value
Actual Value
Prohibitive Mileage
Unlimited Mileage
Restricted Use
Etc...

What special considerations should a GT owner be aware of (I know, don't get in an accident, tell her to wait until you get home, only one person can drive at the same time, etc...)?

My current policy bases a total loss on a 'Comparable Automobile'. I was wondering what the gotchas will be.

http://www.insurance.ca.gov/0100-co...residential/upload/Fair-Claims-Amendments.pdf

Applicable clin - Page 13, section 2695.8

 

[cmoody32]

I use AIG and have a agreed upon value greater than the purchase price. If my cars were totaled I would need money for my pain and suffering. (plus it is the true value)

 

[Sinovac]

In my opinion, agreed value is the way to go since you control the amount of payment in the event of a total loss. Review the agreed value at each annual renewal and adjust it as you deem necessary. On my recent renewal with Hagerty, they suggested a 5% bump in agreed value for the vehicles I have insured with them. My blue/white GT is insured for what I paid new-$160k (w/o Mac). Hope this is useful to you.

 

[Indy GT]

Insurance

Haggerty as well at agreed value what I have in the car. As pointed out you can change the value at renewal based on market conditions and condition of your car. They do not limit your milage however you have to give them an approximate annual usage, and some restrictions apply (like they do not want you to use the car as a daily driver, etc).

For this type of car I believe this policy provides the most logical coverage.

 

[OCPETE]

Agreed with Haggerty for all my cars tears for fears. FGT I threw in my actual cost + tax etc. :thumbsup

 

[svtowner]

Ask your current "standard automotive policy" claims adjuster what they would give you in the event your car was totaled or stolen...I think their answer would shock you. When I finally got an answer, Citizens Insurance told me ~$90K. I immediately switched to Grundy "agreed to" value policy of $160K.

 

[Waxer]

Agreed value. I have it now based on my purchase price. FMV is always subject to argument. You can always adjust the agreed value based on market for added premium.

 

[todd]

This is an important question, I just found out my Farmers policy lets them use "like and same parts" Or junk yard parts. Do understand what they will give you in case of loss, It could be far less than expected.

 

[cobrajeff]

In addition to an "Agreed Value" insurance policy, I highly recommend that you have a professional appraisal of your car, and a good set of recent photographs of it (front and rear 3/4 shot; interior; engine compartment; any expensive mods). Submit these to your insurance agent each year (or at least any time you feel the need to increase the "Agreed Value") at renewal time.

Jeff

 

[silver1331]

The recent thread on GT prices got me thinking - I used to have a agreed value policy with Hagerty but recently switched tos state farm since my premium was 75% cheaper...what experiences have people had debating "replacement value" with their insurance companies? I'm under 30 and single so maybe that was the reason for the premium difference but it the spread was SO wide I felt it didnt make sense to pay almost $2k a year more for the agreed upon value. I made it very clear to my agent when i set up the policy what i thought the car was worth (~150k) and sent recent pictures as well. Not sure it makes a difference but it cant hurt...

Shelby - any idea how the results of your discussions with insurance adjusters has turned out/been settled?

 

[Kayvan]

Hagerty / Grundy is twice what State Farm charges here in NY.

 

[Howard]

I recently did extensive research on auto insurance for my New Jersey coverage. Like the owners posted earlier, I found a substantial difference between the specialty insurers "stated value" policy cost vs the standard coverage offered by some national carriers, like State Farm. Not all standard policy carriers would insure the GT. In NJ the difference was about $1000/yr in favor of the standard policy carriers. Of course, in the event of a total loss with the standard policy carriers the fun begins; avoided with the stated value policies. How much is your tolerance for risk worth each year?

Howard

 

[TACHY]

I (unfortunately) have had first hand experience with filing a claim with State Farm after my car was deemed totaled because of cracks in the aluminum frame. This was 2 years ago and although it took several months to finalize, State Farm covered the current FMV and the cost of aftermarket additions so long as I had the receipts. Don't know what their policy today would be. I was not offered insurance with them on my replacement car, currently have replacement coverage with Classic, Forum sponsor.

 

[Drew@ClassicAuto]

The policies that we sell to the FGT members are Agreed Value - not Stated, not ACV.

This is one of the few cars that are 15 years or newer with some appreciation.

Howard is right, what is your tolerance. Are you willing to save a few hundred to a thousand a year with a standard insurance company and when the sh*t hits the fan - you find out you are out thousands.

I have heard the horror stories in my ten plus years at our agency.

Every policy is different, so if you are with a standard auto company (State Farm, Allstate, etc) read the fine print or get them on record on how they would handle the payout on the FGT.

 

[2112]

Insurance is expensive................until you need it. Agreed value is just what is says. I usually pick the highest $ they will allow me to go (they don't insure $150K cars for $1M).


Tachy hit the lottery. You should hear the horror stories on High Perf. boats.

 

[jaxgt]

I would ONLY do agreed value policies for anything, including our daily drivers. We had one car totalled this year (fortunately it was our Acura while parked and unoccupied). The claim was as easy as can be with no surprises. To me, well worth it. Our cars and house are with the same insurer.

 

[jrz]

I use Hagerty for my antique Chris Craft and started talking about the cars, GT 350 Shelby, Z 06, SRT 10 convt Viper, and the GT. They seemed fine with the occasional drive with the cars or shows, but had a problem with taking one of the cars to work. With our short season in Wisconsin, sometimes that seems like tho only drive I have.

 

[Shelby#18]

I'm with Drew at Classic through their Private Client Group. With a non-car issue I had with them, I couldn't be happier with the way it was handled. My X1's and other vehicles have agreed value.

 

[Kayvan]

I had a 20 min converastion with one of Hagertys underwriters re: driving a classic.

I told her I would drive the car methodically EVERY SINGLE weekend from March-November for an Avg of 50 miles; this would include going to lunch or dinner, maybe park/beach, and leaving unattended in public unlocked parking lot. As long as it was not to shopping, work, school she was OK with. I pushed further to ask if it was OK to use on overnight weekend away > 100 miles or to park permanently in public parking facility (not home), that was locked (ie, an apartment building with key or card-pass (not necessarily a exotic car club-garage), this too was OK.

This was quite different from the "occasial pleasure use" definition that I had heard of in past, where car could not be left un-attended, and use had to be to or from show, parade, meet, etc.

 

[AlohaGT]

In full agreement with jaxgt, all of our personal cars are insured on agreed value basis to cover replacement of not only base vehicle but all mods.