Recent increase in value?

[jaxgt]

If you have an actual value policy, and it is easily shown where values are today, would an actual value policy not pay you the market value of the car without having to have an agreed value?

Also, with a rising tide, would you need to raise your agreed value every couple of months?

With my logic, an agreed value policy works best when it can be shown to be a depreciating asset but worth more to you than the market would indicate.

Not poking holes in anything here, just posing a question.
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the problem is, ‘actual value’ will be what insurer says it is, unless you want to go to court. Rest assured they will not automatically value it to your liking

 

[extrap]

I got a $400k Guaranteed Value Haggerty quote last week, but seeing the asking prices and recent auction sales that might not be high enough.

 

[PeteK]

Mike, read the auto insurance policy fine print. They will pay “actual cash value” if they declare the car a loss. ACV is an intentionally misleading insurance term of art for “the wholesale price in the market,” which is what dealers trade for among each other. It is functionally equivalent to “loan value” or “trade in value.” It is NOT full market value in a competitive market with a reasonable time to sell among willing sellers and buyers. Thus, it is not what you would expect to pay for a replacement car. ESPECIALLY a rare or collector or exotic car. You would end up arguing with the insurance company and probably have to hire a lawyer to get anything near full market value.

The advantage of an agreed or declared value policy is that there is no argument about market value. The downside is that you must update the agreed value regularly in a frothy market.

 

[roketman]

Guess how much my GTs will be worth when I die?
Blah , blah , blah
Go for a ride !
Live the drive!

 

[B.M.F.]

the problem is, ‘actual value’ will be what insurer says it is, unless you want to go to court. Rest assured they will not automatically value it to your liking

I've went through this 4 times and disagree along with what i've seen insurance companies pay out over the years being in the autobody business.. In 2010 auto owners paid me top dollar on a 05 f250 ford pick up I rolled in the winter on a icy road, 2012 Auto owners paid me 200k on a salvage title ford gt when I stuck my car backwards into a tree.. That was a lot of money in 2012 for a GT let alone one with a prior salvage title. They found comps with similar miles and deducted for prior accident, sold me the salvage back for 18k and I fixed it again. They did drop me lol In 2013 I had a loss with progressive on a 03 cobra with low miles. They paid out 26k on that. That was all the money back then too for that with them just finding comps. They have to pay you fair market value on the replacement cost. It is very easy these days to come up with fair market value. I got into a round about accident in sept of 20 with my 2016 e63 amg and it was a prior salvage car I paid 42k for and the insurance paid out 31k to fix it. I ensure all my Gt's and cars with state farm now at $69.00 a month because I don't feel any specialty insurance will or would pay me more for the extra money I would be paying them and i'm not trying to over insure my cars for more than what they are worth. I can also put them on storage insurance for 6 months out of the year for 29$ a month.

If you are educated at all in cars and prices and do any sort of due diligence, no insurance company should ever be able to take advantage of giving you less than what your car is worth IMO.

 

[PL510*Jeff]

I've went through this 4 times and disagree along with what i've seen insurance companies pay out over the years being in the autobody business.. In 2010 auto owners paid me dollar on a 05 ford pick up I rolled in the winter on a icy road, 2012 Auto owners paid me 200k on a salvage title ford gt when I stuck my car backwards into a tree.. That was a lot of money in 2012 for a GT let alone one with a prior salvage title. They found comps with similar miles and deducted for prior accident, sold me the salvage back for 18k and I fixed it again. They did drop me lol In 2013 I had a loss with progressive on a 03 cobra with low miles. They paid out 26k on that. That was all the money back then too for that with them just finding comps. They have to pay you fair market value on the replacement cost. It is very easy these days to come up with fair market value. I got into a round about accident in sept of 20 with my 2016 e63 amg and it was a prior salvage car I paid 42k for and the insurance paid out 31k to fix it. I ensure all my Gt's and cars with state farm now at $69.00 a month because I don't feel any specialty insurance will or would pay me more for the extra money I would be paying them and i'm not trying to over insure my cars for more than what they are worth. I can also put them on storage insurance for 6 months out of the year for 29$ a month.
I've went through this 4 times
If you are educated at all in cars and prices and do any sort of due diligence, no insurance company should ever be able to take advantage of giving you less than what your car is worth IMO.

""I've went through this 4 times--what a run of bad luck.

 

[B.M.F.]

""I've went through this 4 times--what a run of bad luck.

Ah as they say Shi!T happens lol On my GT and the truck I put insurance on them the same day they were crashed. Thankfully I put insurance back on them in the afternoon or it would of been a bad day to the pocket book!

 

[PeteK]

Minnesota state law may be more protective of insureds than other states. That’s not the case everywhere.

 

[AJK]

B.M.F. you are correct. My father is independent insurance agent and he said he has never seen a person be under paid on an AVC value policy ( he calls it a current market value policy ) for a total loss. It is true that an agreed value policy eliminates argument but doesn't mean you are getting current market value either if you don't keep the value up to date. A stated value policy will only pay the stated amount if in fact it is worth that much. On a partial loss it doesn't matter which kind of policy you have.

 

[B.M.F.]

B.M.F. you are correct. My father is independent insurance agent and he said he has never seen a person be under paid on an AVC value policy ( he calls it a current market value policy ) for a total loss. It is true that an agreed value policy eliminates argument but doesn't mean you are getting current market value either if you don't keep the value up to date. A stated value policy will only pay the stated amount if in fact it is worth that much. On a partial loss it doesn't matter which kind of policy you have.

I learned the hard way on a stated policy. I was paying 2 times the regular amount and when it came time to pay they didn't pay the stated amount. Lesson learned. Agreed would be the only way to go other than just a regular policy.

 

[extrap]

Confused. What's the difference between Stated and AVC (Agreed Cash Value? did you mean ACV?)? I see Progressive says (click here) "When you make an insurance claim, Progressive looks at your stated amount and the actual cash value (ACV) of your vehicle and pays whichever is less. So it's important to be as accurate as possible when estimating the value of your vehicle."

My goal would be to ensure I'm paid what I think is market value for the car if it's totaled / stolen / destroyed. Is that coverage available? I thought it was, before this thread!

So if using Progressive (which I'm not) I might pay a bunch to insure my beloved FGT for say $5M, but when a tree crushes it they're only gonna pay me $300K (or thereabouts)?

Thanks for the discussion ... obviously never have been clear.

 

[snap]

In Canada, an appraisal submitted to the insurance company is what keeps the car's value current. For a $100 a year it works pretty good. BTW...is there a way to find out how many 2005 -6 GT's are still out and about? I know quite a few have departed our roads and I remember there was a registry awhile back that kept track of the diminishing numbers

 

[fjpikul]

No such registry I have ever seen. Any numbers are pure speculation.

 

[AJK]

Confused. What's the difference between Stated and AVC (Agreed Cash Value? did you mean ACV?)? I see Progressive says (click here) "When you make an insurance claim, Progressive looks at your stated amount and the actual cash value (ACV) of your vehicle and pays whichever is less. So it's important to be as accurate as possible when estimating the value of your vehicle."

My goal would be to ensure I'm paid what I think is market value for the car if it's totaled / stolen / destroyed. Is that coverage available? I thought it was, before this thread!

So if using Progressive (which I'm not) I might pay a bunch to insure my beloved FGT for say $5M, but when a tree crushes it they're only gonna pay me $300K (or thereabouts)?

Thanks for the discussion ... obviously never have been clear.

ACV stands for actual cash value (market value). The value of the totaled vehicle is determined after the loss has occurred. Agreed value is the value determined when the policy is issued or amended and is the amount paid if the vehicle is declared a total loss regardless of what its current market value is. Stated value is also determined when the policy is issued or amended. That value is the most you can recover if in fact the ACV (market value) is at least that much. Unless the policy has a maximum amount it will pay for any loss as part of the policy language (and some do) I personally think the ACV policy is a safe choice unless your vehicle is worth less than the agreed amount at time of loss.

 

[2112]

With all the online data to support where values are today, wouldn't be easy to determine replacement cost?
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[extrap]

With all the online data to support where values are today, wouldn't be easy to determine replacement cost?
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On BaT 9,949-mile Tungsten ended 6/9/21 at $360k whereas 7,591-mile Tungsten ended 7/13/21 at $312k.

 

[Art138]

On BaT 9,949-mile Tungsten ended 6/9/21 at $360k whereas 7,591-mile Tungsten ended 7/13/21 at $312k.

Although the 7/13 one did not meet reserve at 312k….Eddie Hill’s NFGT is doing very good.

 

[PeteK]

ACV is not equal to replacement cost. Two different things. ACV is essentially wholesale price. Replacement cost is what you as an individual retail customer will pay.

and, as noted above, different states have different levels of consumer protection as to how little insurance companies can pay.

 

[Awsum GT]

Gentlemen,

On a percentage basis new and old Ford GT prices are pretty flat compared to the 200% increase of 2x4’s and plywood I just bought at Home Depot. The cost of gas at my stations is up 50% in the last 6 months. GT’s up 30%….NBD.

Chip

the price of the lumber material needed to build our homes has increased an average of $35,000 per house over the past few months... that's not counting all the other material price increases! It's insane.

 

[Special K]

the price of the lumber material needed to build our homes has increased an average of $35,000 per house over the past few months... that's not counting all the other material price increases! It's insane.

If it’s any indicator, lumber has plummeted by 2/3 since its high a couple of months ago. I feel a screeching halt coming...