Insurance-agreed value vs stated

[csheff]

I was looking for the topic that talked about which insurance u should make sure u have and can't find it. My limited ability on a computer is sad I know. I know u guys out there are awesome in helping. Anyone able to find it?

[CSX 4133]

Here is a pretty good explanation of the two coverages, hope this helps.

https://www.hagerty.com/insurance/insurance-tips-and-resources/stated-value-vs-guaranteed-value

[SFM6S087]

If you're having  trouble following the link Steven provided here's the important part of that article:

Stated Value is coverage that reflects an amount that is "stated" at the onset of the policy. You tell your insurer what your car is worth (with proper documentation) and it is insured for that amount. The caveat here, however, is that the insurance company can choose to pay you either the Stated Value or the Actual Cash Value, whichever is less.

Alternatively, Agreed Value, coverage primarily offered by specialty insurers, is based on the proven value of your car as determined by you and the insurance company, according to appraisals, photos, or other relevant documentation. With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-upon value in the event of a covered total loss.

If you own a classic or collector car that is maintaining or increasing in value, Agreed Value is the best option to consider, or you risk losing out significantly if you have an accident. It's important to note that most standard insurance companies do not typically offer Agreed Value, unless they partner with a specialty provider.

******
Agreed value is the best way to go.

With stated value you are paying for coverage "up to" the amount of the policy. So your coverage has an upper limit, but no lower limit. The insurance company will decide whether to pay the stated value or something less based on their valuation of your car when you make the claim.

With agreed value they will pay the agreed upon amount for a total loss. No more, no less. No haggling over the condition and market value of your car at the time of the claim.

I know that Grundy offers agreed value policies. I assume there are also other companies doing that. Be sure to pay attention to the details. There is a world of difference between these two policy types.

Steve

[CSX 4133]

Thanks Steve for the clarification on the two types of policies. If you own an appreciating car(s) it would also be in your best interest to revisit your policy to ensure you have adequate coverage periodically.

[shelbydoug]

If you're having  trouble following the link Steven provided here's the important part of that article:

Stated Value is coverage that reflects an amount that is "stated" at the onset of the policy. You tell your insurer what your car is worth (with proper documentation) and it is insured for that amount. The caveat here, however, is that the insurance company can choose to pay you either the Stated Value or the Actual Cash Value, whichever is less.

Alternatively, Agreed Value, coverage primarily offered by specialty insurers, is based on the proven value of your car as determined by you and the insurance company, according to appraisals, photos, or other relevant documentation. With Agreed Value coverage, the insurance company will guarantee that they will pay this agreed-upon value in the event of a covered total loss.

If you own a classic or collector car that is maintaining or increasing in value, Agreed Value is the best option to consider, or you risk losing out significantly if you have an accident. It's important to note that most standard insurance companies do not typically offer Agreed Value, unless they partner with a specialty provider.

******
Agreed value is the best way to go.

With stated value you are paying for coverage "up to" the amount of the policy. So your coverage has an upper limit, but no lower limit. The insurance company will decide whether to pay the stated value or something less based on their valuation of your car when you make the claim.

With agreed value they will pay the agreed upon amount for a total loss. No more, no less. No haggling over the condition and market value of your car at the time of the claim.

I know that Grundy offers agreed value policies. I assume there are also other companies doing that. Be sure to pay attention to the details. There is a world of difference between these two policy types.

Steve

"Agreed" is better but it doesn't change the way in which the company will operate.

Generally a company will pay up to 75% of the "actual cash value" to repair the car without totaling it out. If they "total" the car they will pay up to 90% of the value and offer it to you to keep with a flat number buy back less the deductible on the car. Sales tax on that number is also involved.

All you are doing with agreed is stating in advance what the basis number is going to be. They don't necessary accept current auction numbers. They have their own "value assessors". Some companies have their own internally. Most of the big companies pay for outside companies to get a value. That way you can't argue with them over the derived value number.


I have State Farm on my 68 GT350. Fortunately I haven't had a claim. Premiums aren't based on 2% of the "stated value". They are much less and they send my Agent out to take pictures of the car annually to verify the condition.

I do know someone that has the same policy on his Pantera in California. He has hit a deer for the second time. He told me State Farm "was great" on both claims and paid for everything. The key probably is that the car wasn't "totaled".

The cost in the shop was $35,000, for a front fender and a hood.



There always is going to have the potential of a disagreement with any company. Companies that use independent adjusters are going to pay more generally speaking since they get paid a fee based on a percentage of the claim rather then have an employee that works for them to settle claims.



I asked my SF agent which policy I have. He hasn't been able to get an answer from Corporate for the last four years.

The other thing to consider is what kind of parts the company will pay for. Original NOS or current aftermarket.

Like I said, one policy is better then the other but it doesn't necessarily settle anything at claim time unfortunately.



Incidentally, I recently was introduced to a new term from them never heard before by me. Electable. Certain items that have been added to the car that it was not originally built with they will not pay for.

I suppose that might mean if you added Webers, 10 spokes, Magstars or maybe a wood Shelby steering wheel could be categorized in that way?

In my case, SF will not pay for "electables". That effects the determination of the 'actual' cash value of the car. So you can't increase that in their eyes.

I'm not sure how that would effect a buy back though since in effect if they were reimbursing you for that then those items would have to be a consideration?

Why would you tell them to keep the car and not get paid for the 10 spokes vs.
steel wheels? You would be giving them to the insurance company for free?



A deer recently ran into my Audi TT and in determining the actual cash value of the car, the electable term came up. They wouldn't consider things like an $1,100, Forge intercooler,or  a Frankenturbo as increasing the value because they are "electables".

I'm still trying to find the deer's insurance company. $8,500, in damages for basically a left front fender, a bumper cover, a hood and a left headlight. Good thing it wasn't the Pantera for sure?

Dealing with them always raises your risk of a stroke I think?

[csheff]

Thanks guys

[SFM6S087]

"Agreed" is better but it doesn't change the way in which the company will operate.

Generally a company will pay up to 75% of the "actual cash value" to repair the car without totaling it out. If they "total" the car they will pay up to 90% of the value and offer it to you to keep with a flat number buy back less the deductible on the car. Sales tax on that number is also involved.

All you are doing with agreed is stating in advance what the basis number is going to be. They don't necessary accept current auction numbers. They have their own "value assessors". Some companies have their own internally. Most of the big companies pay for outside companies to get a value. That way you can't argue with them over the derived value number.


I have State Farm on my 68 GT350. Fortunately I haven't had a claim. Premiums aren't based on 2% of the "stated value". They are much less and they send my Agent out to take pictures of the car annually to verify the condition.

I do know someone that has the same policy on his Pantera in California. He has hit a deer for the second time. He told me State Farm "was great" on both claims and paid for everything. The key probably is that the car wasn't "totaled".

The cost in the shop was $35,000, for a front fender and a hood.



There always is going to have the potential of a disagreement with any company. Companies that use independent adjusters are going to pay more generally speaking since they get paid a fee based on a percentage of the claim rather then have an employee that works for them to setle claims.



I asked my SF agent which policy I have. He hasn't been able to get an answer from Corporate for the last four years.

The other thing to consider is what kind of parts the company will pay for. Original NOS or current aftermarket.

Like I said, one policy is better then the other but it doesn't necessarily settle anything at claim time unfortunately.



Incidentally, I recently was introduced to a new term from them never heard before by me. Electable. Certain items that have been added to the car that it was not originally built with they will not pay for.

I suppose that might mean if you added Webers, 10 spokes, Magstars or maybe a wood Shelby steering wheel could be categorized in that way?

In my case, SF will not pay for "electables". That effects the determination of the 'actual' cash value of the car. So you can't increase that in their eyes.

I'm not sure how that would effect a buy back though since in effect if they were reimbursing you for that then those items would have to be a consideration?

Why would you tell them to keep the car and not get paid for the 10 spokes vs.
steel wheels? You would be giving them to the insurance company for free?



A deer recently ran into my Audi TT and in determining the actual cash value of the car, the electable term came up. They wouldn't consider things like an $1,100, Forge intercooler,or  a Frankenturbo as increasing the value because they are "electables".

I'm still trying to find the deer's insurance company. $8,500, in damages for basically a left front fender, a bumper cover, a hood and a left headlight. Good thing it wasn't the Pantera for sure?

Dealing with them always raises your risk of a stroke I think?

That's GREAT information. It would seem that narrowing your list to companies that offer agreed value insurance is a good start. Then ask others what real world claim experience they've had with those companies.

I have a friend who had an accident on the way to one of the SAAC conventions that left him on the side of the road with his damaged Shelby on the trailer behind him. A person stopped to see if he needed help and turned out to be an agent from his insurance company. That guy started the claim process on the spot, and complete coverage was provided to fix everything to concours standards in a reputable shop. I need to find out the name of that company and consider them for my coverage.

Steve

[shelbydoug]

I don't think that any company or even Areed Value would insure restoring a car to Concourse standards. They would have no idea what that would be.

You would have to take the car to a restoration shop like Tim Lea's and let him debate with them why correct casting dates for instance or a NOS KR hood is different then an aftermarket fiberglass hood. Good luck to all on that, including Tim.


With a Stated Value policy, in a way the IC is going to try to do that by rating the actual condition the car was in at the time of the accident like they do for cars in regular use. They will attempt to point to one or two examples that they will use as a 100%, look at your $100,000, upper limit and judge yours as a percentage of that, then apply all of the other limit of repair (75%) and total reimbursement to you (90%) numbers.

So considering the method in which they determine the "actual cash valve" it doesn't even pay to over insure the car. That's only there because as an owner you can't keep up with almost day to day changes in value so you set what you think is a safe high number.

[kjspeed]

If that guy's name is Doug and he lives in Florida and owns a 66 that was damaged on the way to SAAC 42, then I believe the insurance company was Heacock - the "official" insurance partner of SAAC. After he told me how well the company worked for him and the extent of the repairs, it cemented my decision to choose them as my provider. Fortunately I have not had a claim, so I have no personal experience with them.
~Kevin

I have a friend who had an accident on the way to one of the SAAC conventions that left him on the side of the road with his damaged Shelby on the trailer behind him. A person stopped to see if he needed help and turned out to be an agent from his insurance company. That guy started the claim process on the spot, and complete coverage was provided to fix everything to concours standards in a reputable shop. I need to find out the name of that company and consider them for my coverage.

[NC TRACKRAT]

"I'm still trying to find the deer's insurance company."    ROTFLMAO!

[kjspeed]

Crazy fact per the Insurance Information Institute: In the US there are more than 1.6 million vehicle collisions with deer each year, resulting in over $4.6 billion in vehicle damage, medical costs and other damage. If the deer had an insurance company it would be broke!

"I'm still trying to find the deer's insurance company."    ROTFLMAO!

[557]

Apparently if you live in a " deer prone" area you would be well advised to install a "deer catcher." (Pat.pend.)on your valuable collectible.......

[KR500]

This time of the year is the worst for vehicle - deer collisions. I live in Stark county OH. It has been the #1 county in the state for vehicle-deer collision for several years. Sunday 8:30 AM I was out and the car right in front of me hit one, he got up an ran away. It has gotten so bad in Ohio that ODOT usually just covers the dead ones with dirt and leaves them were the fell. To many to pick up.

[Side-Oilers]

It's just a matter of time until some group lobbies to shut down all rural roads in Ohio (and other states) this time of year to allow the deer a "Car-free Deer-Safety-Crossing Zone."

[SFM6S087]

If that guy's name is Doug and he lives in Florida and owns a 66 that was damaged on the way to SAAC 42, then I believe the insurance company was Heacock - the "official" insurance partner of SAAC. After he told me how well the company worked for him and the extent of the repairs, it cemented my decision to choose them as my provider. Fortunately I have not had a claim, so I have no personal experience with them.
~Kevin

I have a friend who had an accident on the way to one of the SAAC conventions that left him on the side of the road with his damaged Shelby on the trailer behind him. A person stopped to see if he needed help and turned out to be an agent from his insurance company. That guy started the claim process on the spot, and complete coverage was provided to fix everything to concours standards in a reputable shop. I need to find out the name of that company and consider them for my coverage.

That's the guy. I call him, "My Conscience." But that's a story for another time.

Steve