Insurance question
Thread Starter
Racer
Joined: Dec 2007
Posts: 445
Likes: 2
From: Thomastown Mississippi
Insurance question
I currently have my '77 Vette insured with State Farm for full coverage. I had been thinking about getting it insured for an agreed value. I stopped by and talked to the agent yesterday and she said that with the current policy I now have, I would be paid somewhere between NADA average retail and high retail. If what she said is true, then it doesn't seem I would need an agreed upon value. I looked up the NADA numbers for a '77 with alloy wheels and factory air and they are:
low retail: $11,200
average retail: $17,870
high retail: $29,290
The agreed upon value I was going to shoot for was $15,000, but it appears the NADA values are right about there, so I'm thinking I'm safe just to leave the policy as it is. It's $200 every six months, full coverage, daily driver, no limit. My question is, are these really the numbers State Farm would use if (God forbid) something happened to the car, or is there some fine print I won't discover until after the fact?? I just don't want any surprises in the event something were to happen to the car. I've been with State Farm for 25 years, only filed two claims, and never had a problem. I know we have some insurance agents on the forum, so please chime in.
Thanks,
Kenny
low retail: $11,200
average retail: $17,870
high retail: $29,290
The agreed upon value I was going to shoot for was $15,000, but it appears the NADA values are right about there, so I'm thinking I'm safe just to leave the policy as it is. It's $200 every six months, full coverage, daily driver, no limit. My question is, are these really the numbers State Farm would use if (God forbid) something happened to the car, or is there some fine print I won't discover until after the fact?? I just don't want any surprises in the event something were to happen to the car. I've been with State Farm for 25 years, only filed two claims, and never had a problem. I know we have some insurance agents on the forum, so please chime in.
Thanks,
Kenny
Team Owner
Joined: Jul 2008
Posts: 23,419
Likes: 22
From: In limbo
St. Jude Donor '13-'15, '17 thru '22
I have never used State Farm. I have Liberty Mutual for my daily drivers. When I asked them about insuring my Corvette for an agreed value, they would do it, but I would have to get an appraisal and go through a whole process with them, pictures and the like. If I didn't go through that process, the car (if stolen for example) would get a value assigned that is the "depreciated value", meaning the purchase price less an annual depreciation. For a 38 year old car, I'm guessing the depreciated value is a big fat zero.
If it was me, I would read my State Farm policy very carefully before betting $15,000 on what someone told you.
If it was me, I would read my State Farm policy very carefully before betting $15,000 on what someone told you.
Drifting
Joined: Oct 2004
Posts: 1,496
Likes: 1
From: Lafayette Louisiana
Melting Slicks
Joined: Sep 2004
Posts: 3,226
Likes: 670
From: Northeast
If it is not in writing then you don't have it.
What if she leaves this company or dies and something happens a year later? The conversation would be as follows.
State Farm: And who told you that we would pay an amount like that?
You: A dead person.
State Farm: Do you have anything in writing.
You: no
Please get it in writing or if it is their policy then there is no problem asking that they point it out to you.
What if she leaves this company or dies and something happens a year later? The conversation would be as follows.
State Farm: And who told you that we would pay an amount like that?
You: A dead person.
State Farm: Do you have anything in writing.
You: no
Please get it in writing or if it is their policy then there is no problem asking that they point it out to you.
Thread Starter
Racer
Joined: Dec 2007
Posts: 445
Likes: 2
From: Thomastown Mississippi
I'll dig up a copy of the policy and read it word for word. It's that "depreciation" part that scares me. I asked her twice, just to clarify, and she seemed confident that value would be somewhere between average and high NADA retail. What she says and what an adjuster say could be completely different. Kevinator, you are correct, I would like to have adequate coverage without limits on driving, as I drive this Vette quite a bit. Thanks for the responses.
Kenny
Kenny
Thread Starter
Racer
Joined: Dec 2007
Posts: 445
Likes: 2
From: Thomastown Mississippi
Just read the policy and it states that they will "pay the actual cash value of the covered vehicle, minus any applicable deductable." The agent said that NADA is where they get their value from, but it doesn't specifically state NADA in the policy. I guess what she told me makes sense. I'll dig a little more tomorrow. They have to have some guideline to go by when agreeing on a claim.
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Le Mans Master
Joined: Mar 2001
Posts: 6,640
Likes: 287
From: Ann Arbor Michigan
Get it writing.
hardworkinman
Joined: Oct 2007
Posts: 507
Likes: 0
From: TN
I got my 79 insured for $20000.00. Not a daily driver, but only cost me $128.00 per year through LaRue Isurance, Inc. Alex is great and his coverage is very inexpensive. I just insured a 1983 280ZX for $10000.00 at $47.00 per year. Again, these are not daily drivers. I have antique tags on them, Weekends only. He is based out of Kentucky. If anyone is interested, just let me know.
Race Director
Joined: Apr 1999
Posts: 15,146
Likes: 477
From: NM
Just read the policy and it states that they will "pay the actual cash value of the covered vehicle, minus any applicable deductable." The agent said that NADA is where they get their value from, but it doesn't specifically state NADA in the policy. I guess what she told me makes sense. I'll dig a little more tomorrow. They have to have some guideline to go by when agreeing on a claim.
tom...
Melting Slicks
Joined: Apr 2001
Posts: 2,030
Likes: 363
From: Lubbock Texas
For any of the rest of you that think you have an Agreed Value policy, I would recommend you make sure now before something happens.
DC
Last edited by DC3; Sep 11, 2008 at 03:17 PM. Reason: typo
Melting Slicks
Joined: Apr 2001
Posts: 2,030
Likes: 363
From: Lubbock Texas
Just read the policy and it states that they will "pay the actual cash value of the covered vehicle, minus any applicable deductable." The agent said that NADA is where they get their value from, but it doesn't specifically state NADA in the policy. I guess what she told me makes sense. I'll dig a little more tomorrow. They have to have some guideline to go by when agreeing on a claim.
DC
Thread Starter
Racer
Joined: Dec 2007
Posts: 445
Likes: 2
From: Thomastown Mississippi
Thanks for all the replies. From you guys' responses, it sure seems like there's a lot of gray, vague areas in the insurance business. You would think the same company would have the same guidelines and policies in every state, but it seems that it just depends on which agent you talk to as to what they offer. When I ask my agent if she could guarantee that I would be paid between average and high NADA value, as she had stated earlier, in the event of a loss, she said she couldn't guarantee anything, since she wasn't the adjuster. Jeez, why can't you ever get a straight answer from these people???? They do this day in and day out! I'll guess I'll just stick with my standard full coverage policy for now, then look into the "agreed value" policy after I finish my interior and get some detailed pictures.
KC
KC