Long story short;

I am in the process of purchasing a low mile 2001 Z06... the bank gave me an absolutely awesome rate of 2.24%, however since the vehicle is over 15 years old, they are requiring an "Insurance Valuation" from my insurance company.

I contacted my insurance company (Geico), and they seemed to be very confused, saying they based the value of the vehicle at the time of the claim, etc, etc, and would not give me the value of the vehicle now.

I figured I am going to have to go the route of Hagerty, or NCM, however when putting in the details about how I'm going to drive the vehicle (5-7000 miles per year) it returned stating that the car wasn't eligible for their coverage..

...I'm at a loss, and really hope this doesn't prevent me from purchasing the vehicle.

Has anyone run into this issue? Thoughts? ETC..

Thanks!

 

I have Haggerty. 2001 C5. Same mileage you put. I think it might be the other questions that are counting you out. I put drive to friends and family and car shows / events.

 

The CU probably wants to know what your insurance is valuing it at. If they are loaning you X dollars but the insurance is valuing it for less they won't make the loan. So you need to find insurance that will cover the agreed value of at least what your loan is for. Hagerty expects you to have another car as the daily driver usually.

 

They probably think of the Vette as just another car that they can just look up the "blue book" value on.

It is harder to put a value on some of these. Non car guys don't get it! It is like insuring a street rod. How would a claims adjuster put a value on something like a 72 Chevele for instance? How do you put a value on your time in restoration or time spent preserving car?

 

All good info here. From my experience the only insurance company that's going to give you a fighting chance here is NCM. They have mileage options and HPDE insurance.

Like others said, you really have to have another primary car for any collector insurance to humor you. Also the mileage you want to run may devalue the car in a few short years depending on what low miles means today. You'll pay an extra $5-7k today for a 15k or less mile car vs a 30k or more car.

 

If you're serious about the car, you can find an appraiser. It will cost you $40-$80 for them to provide a written appraisal. Then you can satisfy the CU and get proper insurance coverage.

Usually banks or insurance brokers have suggested places to go. If you're​ working directly with Geico, they won't know /care. Ask a local insurance broker instead. You can also check with a dealership or look for privately advertised appraisers.

 

But you have nowhere near as much fun if it's just sitting in the garage. Why bother? Want an investment? Hit the stock market or precious metals or real estate.... With very rare exceptions, cars are not a good investment. Drive 'em.

 

I have GEICO for my C5. They do not do "custom" insurance options (generally speaking). They are basically set up to insure run of the mill cars...Civics, Cruze, Camry, etc.

If you have any nice/unique car (ie Trailblazer SS, Corvette, Viper, Supra, etc) I would stay away. If something happens when it's insured by GEICO, you're screwed with these cars. They are the absolute worst with giving you "fair market" value. With a 15 year old C5, even in mint condition, I bet they would cut you a check for no more than $10-$15k. They will not take into account your American Racing headers or Corsa exhaust or anything else. They will not take into account the car is 15+ years old and literally doesn't have a scratch on it. Trust me...they are awful for owners of unique cars that have a "book value" that is different than real world value.

I'm switching myself to either Hagerty or NCM or some other "specialty" insurer.

BTW...is 717 your area code? Are you from the Lancaster, PA area?

 

I am very happy with Haggerty. They allow you to declare the value of the car. And if it is within reason they go with that number. Their roadside assistance is terrific as well. Not only is the towing good for 150 miles. But it also covers all other cars in your household even if they are not insured with Haggerty. And they send you a fun magazine every month or two that focuses on collectible cars. Great rates as well.

 

I just totally agree . And they handle claims great . I've had two claims , an adjuster came out with in two days and I had a generous realistic check two days later . I've been with them over twenty years and would not consider anyone else

 

I did declared value insurance through Hagerty after finishing all of my modifications, its surprisingly inexpensive to have a 30,000 policy on your car, providing you can show them where you have invested at least somewhere in the ballpark.
My policy clearly states what a total loss will pay.
I don't think any bank would argue knowing their getting paid first. It was very easy to get a policy.

 

be very carefull if you are thinking of using them got rear ended and other buy left the scene over a month for them to look at the car then cancelled me when i went to renew because of the wreck, just be carefull

 

This is what the bank is asking for.

Most banks do not loan out on a car over 10 years old (many have limits much "younger" than that) so what the bank has to determine is if the insurance payout is equal to the amount that they're willing to finance the car for.

Here is a situational aspect that could arise;

I'm going to say the Z06 you're looking at has a sale price of $20,000 (reasonable for a 2001 Z06). You may find an insurance carrier that will cover up to the value of the car, however the bank will only finance up to the value they have determined which is $18,000. As insurance will cover the value of the car based on the lien the bank will lend you the $18,000 on the assumption that you are going to chalk up the other $2,000. The bank may also finance the entire purchase price of the car, but I highly doubt this will happen unless you're going through a good credit union.

However the flip could arise in that the car could be valued relatively low by insurance and it could possibly be lower than what the bank wants to set the lien at. In that case they may either not give you the money or ensure that you have the monetary security to account for the difference.

I will close with an opinionated note: this is potentially the WORST time to go and try and finance a C5. The value market for the cars are really beginning to hit the floor, and many sellers are not adjusting their prices accordingly. This is creating a rather large value-to-price differentiation.

 

It's been my experience with insurance companies that they will insure a vehicle for whatever amount you want it insured for...if that amount ends up being more than what the insurance company values it at (which it almost always is), you will pay a higher premium...

 

Does Hagerty limit the number of annual miles you can drive, and how much are their premiums?

 

im not sure . I have a second car and the corvette garage kept . They just never checked mileage or guestioned my trips when I made claims . I've put almost 15000 miles in less than a year , and now that I'm retired I hardly use the second car , which is actually my wife's car . I've just had a great experience with them . This year I reduced my agreed value because the values of c5 s are decreasing a little , so for 15000 I'm paying 500 with roadside assistance . I lost count of the times I used that with my 71. I don't mean to sound like a shill for them but they have been excellent

 

also too , you gotta get one !

 

Is that 500 a year, or every 6 months?

 

I have a policy with NCM for my 2001 C5 convertible agreed value of $20K full coverage for $260.00 a Year.I don't understand why an insurance co. wouldn't give you an estimated value, it seems that it would be to their benefit to do so.
Fred

 

Do you have an annual mileage restriction?