Agreed value ins. & driving to work?

[Chad-1stGen]

I've seen a ton of threads over the years on classic insurance or agreed upon value based insurance and I know a ton of folks have these types of polices.

However, all of the ones I have looked at always have 100% restriction on driving the vehicle to work but I see plenty of threads where people mention driving their car to work occasionally.

I used to have a "regular" insurance policy on the Camaro and wanted to upgrade to Agreed upon value with all of the $$ I've poured into the car over the past year. However, I also like to drive the car to work occasionally. In the past I probably averaged 20 trips to work a year so a bit over once a month.

Are you guys just gambling on not getting into a wreck if you drive it or is their a policy out there that recognizes pleasure based use might be a trip to work on a beautiful Friday or something?

Since this is an insurance questions I've included the obligatory :beathorse

[Matt@BOS]

Bryan (Patch) should chime in to help you out with that question. He drives his car to work, in the rain, etc. :lol:

I wouldn't worry about it too much. Insurance companies are probably most worried about your car turning into a daily commuter.

Matt

[jy211]

forbid your in a accident but who's to say you were not taking it to the local oil change shop? :D

[69znc]

All the insurance companies I have dealt with it is not where you are driving it but how many miles per year is the factor that sets the rate. The premium for full replacement, based on a recognized appraisal, goes up quickly from 2000, to 3000 and then to 5000 miles per year.

[Bryan O]

Call Heacock and see what they can do for you. Steve Rupp uses them also.

Heacock knows my car is parked in an underground gated security garage when I drive it to work.

[ClassicCarInsur]

Hi Chad,

I share your concerns as you stated in regards to Classic Car Insurance. But not all companies are so restrictive. I write with Infinity through their Classic Collectibles program. We have our banner on the site. They have an unlimited milage plan. Please give me a call at 877-654-1948 to discuss further, or if you like or you can click on the banner enter the vehicle information & I will send out a quote immediately.

Thanks,
Mark

[214Chevy]

Since I'm a firefighter, when I drive mine 2 work (which is every blue moon), I park it inside the apparatus bay with the firetruck and the ambulance. Sorry, but I wouldn't dare drive mine to an office building and leave it outside unattended. :faint: :faint: That's just me though, others are far braver than me.

[jeff71]

Look into Heacock Classic they don't have the limitations like some of the others.

[OLDFLM]

Call Heacock and see what they can do for you. Steve Rupp uses them also.

Heacock knows my car is parked in an underground gated security garage when I drive it to work.

I've had Heacock on my car for 4 years now... and all 3 miles so far! LOL

They are great to work with! Agreed coverage is the way to go!

[Roberts68]

I have pondered this too and have a similar situation. My car is woefully undervalued as appraised in '96 so I need to make some mods. My insurance is replacement value based on comparisons. Um, by their opinion...:_paranoid I can see that going horribly wrong fast.

Since my car has not seen the road but once since 97 it slipped under the radar until I looked into it recently in anticipation. Now I am not happy.:(

I have seen ads on Speed for Grundy or Haggerty but Heacock is a new one to me.

[MaxHarvard]

I have mine with agreed value, after a replacement cost value was assessed.

Unlimited mileage, garage kept, all through my DD and home insurance people, they were cheaper than Grundy or hagerty by far. I got the multi car and home owners policy as deductions because I went that route.

[Roberts68]

Who is your policy with Eric?

Mine is Westbend and I have all the same stuff, except the agreed value. If I could do an appraisal/assessment and stay with them I would be happy. They explained it differently to my local agent though.

[camcojb]

I have mine with agreed value, after a replacement cost value was assessed.

Unlimited mileage, garage kept, all through my DD and home insurance people, they were cheaper than Grundy or hagerty by far. I got the multi car and home owners policy as deductions because I went that route.

Just make sure it's agreed value, not stated. If it says "actual cash value" on the declarations page it is not agreed value, and they can look at comps and give you a smaller value than the policy is based on.

[MaxHarvard]

Who is your policy with Eric?

Mine is Westbend and I have all the same stuff, except the agreed value. If I could do an appraisal/assessment and stay with them I would be happy. They explained it differently to my local agent though.

Mine is American Family.

Just make sure it's agreed value, not stated. If it says "actual cash value" on the declarations page it is not agreed value, and they can look at comps and give you a smaller value than the policy is based on.

I'll look at the policy again to double check, but I do remember in my conversation with my insurance lady (I've been with her almost 20 years) she made me get an appraisal and he put "Replacement Cost - $XXk" on it. I also told her the value I wanted on it and she didn't seem to have a problem with it.

[camcojb]

Mine is American Family.



I'll look at the policy again to double check, but I do remember in my conversation with my insurance lady (I've been with her almost 20 years) she made me get an appraisal and he put "Replacement Cost - $XXk" on it. I also told her the value I wanted on it and she didn't seem to have a problem with it.

This will explain the difference between the two. Most all of the standard daily driver carriers who offer a classic policy are still stated value or ACV, even though you set the premiums on an agreed value. Kind of confusing. Just make sure your policy does not say "actual cash value" as an option for reimbursement.

Actual Cash Value (ACV)

ACV translated means "What its worth in cash, today (just before you crashed it)." After your accident, an insurance company adjustor will go out to the tow yard and look over your vehicle. After that, using sources of their choosing, they will look up what the typical value should be for your car, and this will be their settlement offer. They may adjust this offer if you object and have some evidence to back up your claim. Or they may not. If the disagreement is strong enough you may need to hire either a lawyer or a mediator. Needless to say this is not an ideal position to be in. You buy insurance so you can be taken care of when suffering through a difficult situation. You don't need to be researching classic car values, making angry phone calls, firing off letters and certainly not hiring - and paying for - attorneys.
Agreed Value

If ACV is the problem, Agreed Value is the solution. If you have a classic insurance policy - from a dedicated company that only issues this sort of policy - this should be the kind of coverage you have. Instead of the above scenario with ACV, what happens instead is you and the insurance company agree on the vehicle value when you sign up - before the policy is issued and any money changes hands. In the event of a disaster, the insurance company guarantees to pay the value that the two of you agree upon before shaking hands. No ifs, ands or buts.

We said this "should" be the kind of coverage you have. You might not. To find out for sure, look in the physical damage section of your policy. Somewhere in there it will say what is going to happen if your classic car is totaled. The exact statement should be very close to this:

In the event of a total loss we will pay the Agreed Value.

That's it. Short and sweet. No wiggle room. Agreed Value is a simple idea and if the coverage is what it claims to be it should be written up simply in the policy.

So that's the good news. An Agreed Value guarantees you will get the protection you paid for. We're done, right? Sadly no. We have to cover one more valuation basis. This is the one that spells trouble for the consumer. It masquerades as Agreed Value but it most certainly is not.
Stated Value

Your typical Big Auto Insurance Company sells policies that pay out on an ACV basis. We covered that above. Those same Big Auto Insurance Companies have customers with collectible autos who want something better. Unfortunately, Big Auto Insurance Companies are typically not set up to handle this sort of thing properly (for reasons too complex to go into here). What winds up happening is consumers often get offered a Stated Value by the typical Big Auto Insurance Company.

Remember the short/sweet payout clause for an Agreed Value? This is what Stated Value says about a total loss:

"In the event of a total loss we will pay the Stated Value or the Actual Cash Value,
whichever is less."

Yikes. Stated Value has an escape clause that lets the insurance company fall back to ACV... and its the default action, to boot. Chances are that's not what you had in mind when you paid extra for the Stated Value endorsement.

So is Stated Value designed to rip people off? No. It can be a good thing in some narrow circumstances... the kind that likely will never do you any good.

Stated Value exists to decide how much premium you pay. Not how much you get paid.
Stated Value lets you insure the car for less than what its really worth in exchange for a lower premium.

[ClassicCarInsur]

Hi Jody,

I thought I post this because this what we offer through Classic Collectors via Infinity. All of our policies are Agreed Value:

Total Protection

HomeFeatures and BenefitsTotal Protection


Your Classic Collectors policy includes the following at no additional charge (coverages vary by state and vehicle type - contact us for additional information):
Agreed Value Coverage
Agreed Value guarantees that in the event of a total loss, we will pay you the full amount of coverage listed on your policy for your vehicle. Depreciation and subjective valuation on your vehicles is eliminated.

The concept is simple - if your vehicle is insured for $15,000, and it is totaled by a covered peril, you receive $15,000 minus any deductible, if applicable.

Many insurers sell what is called "Stated Value" policies, which is inferior protection. This coverage states you will receive "up to" the value listed for the vehicle in a total loss, but it does not guarantee the full amount will be paid.

Note: Agreed Value Coverage is offered in most cases at no extra cost, but there are some states and vehicle types where Stated Value Coverage is offered instead. While offering less coverage than Agreed Value, Stated Value Coverage is better than the alternative ACV Coverage (Actual Cash Value) offered by regular automobile insurance policies. Exotic vehicles are the most common exception.

In addition to what I stated above here are additional coverages that Infinity offers via their Classic Car Program:

Newly Acquired Vehicle Coverage - up to $75,000 for 30 days
Still adding cars to your collection? Don't worry. You're covered. A newly acquired vehicle will be covered for the verifiable value or purchase price up to $75,000 for 30 days.
FREE Spare Parts Coverage
Spare Parts Coverage on our policy covers, at no additional charge, extra parts of the insured's vehicle, such as a second set of wheels or a hard top roof to a convertible, up to $1,000 when stolen or damaged in an accident. Spare parts covered do not include those parts needed in the event of a vehicle breakdown.
FREE Trip Continuation Coverage
If your collectible vehicle is disabled due to an accident over 50 miles from the garaging location, we will pay up to $75 per day for lodging and transportation expenses incurred returning to your home address. The maximum payout is $500. See your policy for more details.
FREE Towing and Labor Coverage
If for some reason, you are not able to use our Driver Club Program, we will pay up to $100 for towing and labor expenses incurred due a covered disabled vehicle.



Thanks,
Mark

[MaxHarvard]

Jody, just called and double checked and my lady said I'm all set for agreed value. :)

[Roberts68]

Unfortunatly, verbal is not what it used to be.
I would verify the text on the declaration page of the policy to be in line with the verbage mentioned above. It should be very easy for your agent to highlight a copy for you.

[camcojb]

Jody, just called and double checked and my lady said I'm all set for agreed value. :)
She may be right, Unfortunately, I have seen several on the boards where the agent thought it was an agreed value policy, but underwriting disagreed. ;) If there's a claim your agent can only do so much.

If you have a copy of the policy, just look at the declarations page, and see if it says "actual cash value" anywhere. Costs nothing to make sure. Out of curiosity, what company is this with?

[Roberts68]

Out of curiosity, what company is this with?
I asked him that earlier. You stated what I was trying to say more tactfully than I did.
When the $hit hits the fan the Agent finds out they were in Sales and their hands are tied.


Who is your policy with Eric?

Mine is American Family.

[camcojb]

thanks, missed that info.

[Bryan O]

Just make sure it's agreed value, not stated. If it says "actual cash value" on the declarations page it is not agreed value, and they can look at comps and give you a smaller value than the policy is based on.

Well, bummer. Now I'm confused.

On my Policy Declarations page it clearly states the following.
Coverage:
Other Than Collision Agreed Value
Collision Agreed Value

Limit/Description
$1XXXXX
$1XXXXX

Then, in Part D "Coverage for Damage to Your Auto" of the policy pages, it states Limit Of Liability A. Our limit of liability will be the lesser of the: 1. Actual cash value of the stolen or damaged property; or 2. Amount necessary to repair or replace the property with other property of like kind and quality.

[camcojb]

Well, bummer. Now I'm confused.

On my Policy Declarations page it clearly states the following.
Coverage:
Other Than Collision Agreed Value
Collision Agreed Value

Limit/Description
$1XXXXX
$1XXXXX

Then, in Part D "Coverage for Damage to Your Auto" of the policy pages, it states Limit Of Liability A. Our limit of liability will be the lesser of the: 1. Actual cash value of the stolen or damaged property; or 2. Amount necessary to repair or replace the property with other property of like kind and quality.
the ACV part is what allows them to look at comps. If they find a "comparable" car out there for a lower value than their policy, then that is their option to make that their payout in a complete loss. You know how many Camaros, Chevelles, etc. there are out there, and the values vary wildly. I don't want to have to depend on their adjuster to know the difference between my $75K pro touring first gen and and somebody else's similar looking car.

I am not saying what they'll do in that case, but I want a true "agreed value" so it's not even an option for them to lower their payout. This is the reason that guys like Mark above and companies like Infinity exist.

[LS1-IROC]

I have a Grundy agreed value policy. I specifically asked about this the last time I called. They said "no problem" with driving to and from work occasionally.

[Flash68]

I have a Grundy agreed value policy. I specifically asked about this the last time I called. They said "no problem" with driving to and from work occasionally.

As someone else already said, if it ain't in writing or at least in an email, I would never take it to the bank.

Sales reps/agents are there to sell policies.... the adjusters/underwriters/attorneys are there to pay out as little as possible at claim time. :)

[Bryan O]

the ACV part is what allows them to look at comps. If they find a "comparable" car out there for a lower value than their policy, then that is their option to make that their payout in a complete loss. You know how many Camaros, Chevelles, etc. there are out there, and the values vary wildly. I don't want to have to depend on their adjuster to know the difference between my $75K pro touring first gen and and somebody else's similar looking car.

I am not saying what they'll do in that case, but I want a true "agreed value" so it's not even an option for them to lower their payout. This is the reason that guys like Mark above and companies like Infinity exist.

OK. I understand my policy fully now. There is a "Collector Vehicle Specified Coverage Endorsement" section that I neglected to scrutinize. In this section the "Actual Cash Value" specification is replaced by the "Agreed Value" specification described on the Declarations page.

[camcojb]

OK. I understand my policy fully now. There is a "Collector Vehicle Specified Coverage Endorsement" section that I neglected to scrutinize. In this section the "Actual Cash Value" specification is replaced by the "Agreed Value" specification described on the Declarations page.

:thumbsup: