Is it worth the extra dollars in yearly insurance premiums? I know that perceived declared value can depend on the condition, dollar amount of aftermarket parts installed, current mileage, and average miles driven per year of your car. What about the limitations imposed such as limited mileage per year, when and where you can drive it to, etc? How do you agree with the insurance company on the actual declared value of your car? How often would you need to make adjustments to your declared value as your car ages? Feel free to chime in with your comments.

 

I can't vote, but I will comment. It really depends on your own situation. I looked at a few months ago and I determined that it was not right for me at this time in the game. I do know there are some rather strict limitations that are required and differ between companies such as, you must have another car less than 7 years old, must have a garage, and must only drive limited miles per year. I met all of these qualifications but the price was just not feasible for me. This particular company based the price on MY listed value not theirs. I only valued it at $25,000 and its a 03 EB Z06 with 33k miles in stock form with a few interior upgrades, so I think $25,000 is a very reasonable value. Its worth checking and calling around and looking for you and your situation. That's just my $.02.

 

Worth it---YES.

 

I had declared value on my grand national but I was also using a collectors type plan. It was definitely worth it because the car was stolen from me and the actual value would have been maybe a couple grand but they paid out with no hassles.

Might not be your situation but just think about what a total loss means to you and that will help the decision.

 

YES! I just switched to Hagerty, got $18,000 agreed value on my 02 with 86,000 miles and SAVED over $400 from my previous policy. Worth it to me...

 

My policy is tailored for my needs and I have no mileage or use restrictions. Of course it must be parked in a garage. The value is more than adequate in a total loss situation, which is the purpose of the coverage. It must be inspected annually and photos kept by the agent. My insurance costs are fair and reasonable for what I need.

 

I answered this after reading the posters statements, about perceived value and condition, which are not the issues with this type of insurance. I hope to help.

When something is insured for a stated value, that value is what you pay your insurance on, as it is now the value of the loss, as stated in your contract and accepted by the underwriters.

It can never be a better or lesser value than regular insurance, it is a different product. I is usually priced more because the risk pool is just you, and not the vast pool of other guys with regular situations.
If you insured a two dollar car for $100, 000, you would be paying premiums against a potential $100, 000 pay out. You are insuring what you both agree would be the value of loss, nothing else. Of course saying a two dollar car is worth $100,000 is insurance fraud
and is just an example.
It is simply a device to insure a car that a guy says has $49,000 in engine work and parts. The underwriters have no way of developing the replacement cost of these mods.so they agree to insure the car for a stated amount . Normally you would just insure for a normal amount plus extras, like blower, expensive radio, stuff that can be easily priced in a loss. Some cars are not easily understood when it comes to replacement value, so you pay premiums against your stated amount of loss. If you had a Cisco Kid Caddy stolen from you, with tooled leather and silver dollars all over the place, you would get a check for an old used Cadillac unless you had insured it for additional value.

All the restrictions are just individual companies attempts to limit exposure to loss.

A stated value policy is not a substitution or replacement for a normal policy. It is a tool with a correct use. And being a financial tool, should not be misused. It is worth it if you need it. Saying it is a comparable choice to normal insurance, or that the choices are interchangeable is like saying a car is a boat. They both have a lot of stuff in common, but are not the same.

 

Im with Chubb on a collectors policy. Agreed value, only thing it has to be garage kept. I have 0 deductibles, no restrictions on mileage, were or when i can drive it. Very good company to deal with.

 

I went with the MCM Insurance Agency on mine last July for an agreed value policy. The cost compared to my previous policy was within a few dollars of each other, but there are limitations to be aware of. I chose the 3K miles per year max, the car has to be garages and I cannot drive the car to go shopping, etc. But for me, the policy was right and should a loss occur, I will be covered for what I have in the car.

From what I was told, the agreed value does not go down unless you change the amount. I will see how things go when my renewal comes up this July.

 

All that being said, I have the same coverage limits, for an agreed value at a lesser price.
Only thing, it has to be garage kept which it is. To me that's a deal.
And my wife sells insurance so it got the stamp of approval.

 

Another issue with perceived value is if you wreck the car no matter who's at fault. If the value of the car is set too high, the amount of money required to fix the car may cause the insurance company to fix the car when it should be totalled. On the other hand, if the value is too low, the insurance company will likely total the car when the car is clearly fixable. So for me, the goal is to set the value of the car pretty close to what the car is really worth and call it a day on value.

My insurance company is USAA which I really like.

 

I'm looking into Haggerty right now and I always seem to find that the premiums always seem to be much lower. Not sure if I can keep it under the 3500 miles allowed. How would they know if you drove 4000 miles?

 

Maybe they know by installing one of those "minder boxes"?

 

Thanks for the interest in my reply, and for catching my mistake. As you are aware, policies are priced on risk, not by the amount of people in the risk pool , as I incorrectly stated.

Glad you saved some money on a better deal. I would much rather have the amount of loss in writing rather than get a surprise from some adjuster telling me what they figured.

The loss situation is also subject to some fun. A shop that needs work might say it can fix a car worth 10, 000 for $9 950, not a total loss and keeps the shop busy. Another shop might not need the work and write the damage as 10, 500, a total loss.

This stuff actually happened to a neighbor of mine. she crashed her BMW and was bummed when the shop came back with an estimate 35 dollars lees than the amount to total loss the car. She didn't want a car with major repairs and was bummed . I told her to tear off the glove compartment door, and heard no more about it. She moved.

 

Who are you with Rick? I'd like a no mile policy but don't want to send them my left leg to get it. Wouldn't be able to work the clutch!

 

My Hagerty policy has no milage limitaions.

 

I have two cars with Grundy. Must be garage-kept, can not be backup cars, no one under 25 can drive them, no mileage limitations, can't be driven to work, agreed-upon value. Works for us. I also have my two race cars insured with a different company with agreed-upon value, not covered on the racing surface, but from return road to staging lanes, fully covered.

 

Safeco. $30,000 for the 98, $15,000 for the 88. So far so good.

 

Interesting. We have them for our other cars and house ins, maybe I should ask about the Vette. I'd like the no mileage restriction part!

 

Yes ,the agreed value policy rocks pay off $30,000 the old Ins. pay off was $3,500 same payment , had to pay up front for a year but well worth it I had $30,000 in it and had to prove it did and if something happened to it got my money back win win ...I went by a shop that had a Hagerty car in it old Chevy had fire damage the shop owner said that Hagerty wanted it fixed like new .COOL