Insurance "Agree Value" vs. classic insurance appraised value

[ADY]

I'm trying to consolidate all my insurance policies and curious how much I can expect to get hosed by my insurance company (USAA) if I opt to add my 1968 Camaro to my existing policy vs. keeping my Hagerty 'agreed value' policy in the event of a total loss. Have any of you had your classic restomod totaled by your insurance and if so did you feel you got a fair payout? Realize this can vary widely based on the insurance company and their appraiser, but just trying see if in general people have got a decent valuation.

thanks,
-Adam

[ilikeike]

I don't see how you would ever want anything other than "agreed value" on a custom car/hot rod or a boat.

[ADY]

I don't see how you would ever want anything other than "agreed value" on a custom car/hot rod or a boat.

thanks, that's what my gut is telling me, just wasn't sure what more seasoned classic cars owners have experienced.

thanks!
-Adam

[214Chevy]

Doesn't most classic car insurance companies ask you how much do you want to insure the car for? Wouldn't that be "agreed value" so to speak? As long as it's not some outrageous amount like $250k for the super-builds, they don't ask for anything but 3-4 pics of the car from all sides/angles. If asking for a value of...let's say,$30K...then they don't ask for appraisal reports, receipts, etc. I insured my Camaro for $60k and they asked me what warrants that amount and to justify said amount. So, I emailed them a few receipts. At least this has been my experience with Grundy and Phoenix, a local company here.

[im4u2nvss]

I use state farm. Had to get appraisal then we used that number as our "agreed value". In the event of a total loss, they will pay out the agreed amount.

[Musclerodz]

I would stick with agreed value, but move away from hagerty. if you read the fine print, they would prefer you never drive your car. grundy is better than hagerty, I used safeco because they had no mileage restrictions.

[214Chevy]

I would stick with agreed value, but move away from hagerty. if you read the fine print, they would prefer you never drive your car. grundy is better than hagerty, I used safeco because they had no mileage restrictions.

Right!! I have Grundy on my Chevelle and Phoenix on my Camaro because they were cheaper than Grundy. LOL!!

[ironworks]

I have a customer with a super high end camaro built like 5 or more years ago by a fancy builder. It was super expensive.

The owner had some kinda insurance that he had to call and activate the policy when he drove the car. It had some mega hp twin turbo engine.

Well the car had been back to the builder quite a few times for repairs and redesign of some things. And this time it was back at the builder and they were out test driving the car and some how lost control of the car and it hit a guard rail and burned completely to the ground. Like unrecognizeable. A complete and total loss. SCARY

The owner was notified a day or so later and on the following Monday found out his insurance would not cover the car at all. Multiple reasons. So far the shop that was test driving the car in their possession had proper insurance but it has been a fight and of course the insurance company is looking for any way to reduce the value of the car. The owner of the camaro has been grilled by an investigator wanting to see if the owner of the car is hurting for money or anything they can find to lower the value or get out of paying the claim. The owner just wants his car back or his money back.

Its a terrible situation. And when the dollar amounts get really high so does the fight to pay the claim.

Do your home work and pay the money for the insurance you want. Insurance companies ideally would like you to pay your premium and they never have to pay the claim and when and if you have a claim try to get you to settle for the least amount.

[camcojb]

I use state farm. Had to get appraisal then we used that number as our "agreed value". In the event of a total loss, they will pay out the agreed amount.

That is not true. You agreed to a number they use to set the cost of the insurance. It is NOT a guaranteed payout though, they can still look at comps and adjust accordingly. Look in your policy for the words "actual cash value".

State Farm doesn't have a true agreed value policy, it is stated value. 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.

[BMR Sales]

Doesn't most classic car insurance companies ask you how much do you want to insure the car for? Wouldn't that be "agreed value" so to speak? As long as it's not some outrageous amount like $250k for the super-builds, they don't ask for anything but 3-4 pics of the car from all sides/angles. If asking for a value of...let's say,$30K...then they don't ask for appraisal reports, receipts, etc. I insured my Camaro for $60k and they asked me what warrants that amount and to justify said amount. So, I emailed them a few receipts. At least this has been my experience with Grundy and Phoenix, a local company here.

Depending on the Company, when the Amount is discussed, it could be "Agreed" or "Stated" value and that needs to be clarified. Agreed is the only way to go.

As far as claims go, I had a Claim on a Totaled Car about 15 Years ago. I got the Total Agreed Value.

[ADY]

Appreciate everyone's feedback; insurance policies and the fine print are written to the point you need a law degree to understand, and you only figure out what you don't know when the s$%t really hits the fan. Had someone with minimal coverage hit us years ago and luckily our coverage included 'under insured', so ended up fighting with our own insurance to get paid policy limits.

Sticking with my "Guaranteed/Agreed" value policy and will look to quotes from Grundy to see if I can get a better rate.

thanks!

[Vegas69]

Insurance is just like a casino, the cards are stacked in their favor!

[im4u2nvss]

That is not true. You agreed to a number they use to set the cost of the insurance. It is NOT a guaranteed payout though, they can still look at comps and adjust accordingly. Look in your policy for the words "actual cash value".

State Farm doesn't have a true agreed value policy, it is stated value. 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.

from state farm
"State Farm® offers agreed-value policies which means if the vehicle experiences a total covered loss, we will pay this agreed-upon value rather than the actual cash value of the car"



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.

This is the process that I had to go thru with state farm. Appraisal, tons of photos then agreement on value.

[SSLance]

I know many people in our community (myself included) that use Alex Larue to insure their cars.

https://larueclassics.com/

He's a great guy that understands our cars more than most agents do and his pricing is pretty good as well. I moved from Hagerty to Grundy when my Hagerty rates doubled...then the following year the Grundy rates doubled so I moved to Larue. His last renewal went up just a few dollars is all...

[Jimmy Sean]

I do.

I know many people in our community (myself included) that use Alex Larue to insure their cars.

https://larueclassics.com/

He's a great guy that understands our cars more than most agents do and his pricing is pretty good as well. I moved from Hagerty to Grundy when my Hagerty rates doubled...then the following year the Grundy rates doubled so I moved to Larue. His last renewal went up just a few dollars is all...

[camcojb]

from state farm
"State Farm® offers agreed-value policies which means if the vehicle experiences a total covered loss, we will pay this agreed-upon value rather than the actual cash value of the car"




This is the process that I had to go thru with state farm. Appraisal, tons of photos then agreement on value.

Thanks for the info, that's something new. They are like Hagerty, they don't want you to drive the car much. Personally I would be wary only because they list specific events they cover. If you were just out enjoying a ride on the weekend and had an accident, would they cover it at full value if you couldn't document a car show or event you were attending.

Here are some important conditions for classic car insurance eligibility:

Your antique or classic car must be used on a very limited basis, such as exhibitions, club activities, and parades or similar events.
You need to have restored, maintained, or preserved your antique or classic car or it must be actively undergoing restoration.

[DRJDVM's '69]

I've had Grundy for about 15 years now and have had a few claims. The biggest one is when I ran over a rim/tire on the freeway and bent the hell out of my rim and the stock subframe. When I made my claim I asked about paying the difference to upgrade to a DSE subframe... the agent said the upgrade was no issue and they paid the whole thing....and would have covered labor but I did it myself....so they got my vote.

Had another small claim and they were very easy to deal with...no hassles or run around....

[im4u2nvss]

Thanks for the info, that's something new. They are like Hagerty, they don't want you to drive the car much. Personally I would be wary only because they list specific events they cover. If you were just out enjoying a ride on the weekend and had an accident, would they cover it at full value if you couldn't document a car show or event you were attending.

Here are some important conditions for classic car insurance eligibility:

Your antique or classic car must be used on a very limited basis, such as exhibitions, club activities, and parades or similar events.
You need to have restored, maintained, or preserved your antique or classic car or it must be actively undergoing restoration.

I agree and am considering going to another company that is more open to me driving my car whenever I want to. Not that I put many miles on it per year anyhow.

[89 RS]

I have agreed value on mine through State Farm. I had to take photos and submit an itemized list of all of the aftermarket parts. Overall, it was a pretty seamless process.

[silvermonte]

I used State Farm for my agreed value for my 72 Chevelle. Had to get a bunch of photos and get an outside appraisal for it to set the value. Once that was done I told State Farm I wanted a policy that would let me drive 5000 miles a year anywhere I wanted to and they set the price according to that. Pretty easy process all said and done.

[jeff71]

You might be able to find the article that Steve Rupp wrote after he got rear ended in Bad Penny the week after it was done, I believe it was in Popular Hot Rod.

Completely changed my mind about using State Farm on my classics.

[Spiffav8]

I'm trying to consolidate all my insurance policies and curious how much I can expect to get hosed by my insurance company (USAA) if I opt to add my 1968 Camaro to my existing policy vs. keeping my Hagerty 'agreed value' policy in the event of a total loss. Have any of you had your classic restomod totaled by your insurance and if so did you feel you got a fair payout? Realize this can vary widely based on the insurance company and their appraiser, but just trying see if in general people have got a decent valuation.

thanks,
-Adam

Adam,

I also use USAA for my insurance and spoke with them about my 67 Camaro. The agent had zero idea what the car really is, but was more than willing to add it to my policy and give me a multi car discount. lol When I pushed and asked for more details, he simply had none. When I told him what I thought the car was worth he stopped talking. After a pause he referred me to USAA's specialty insurance, which is more of a partnership with some other company. Speaking with the lady at that company and giving her the requested details resulted in an insanely high price and silly restrictions on driving the car. USAA has been a fantastic company in the 20+ years I have been with them. However, this is not what they're really good at. Like Mike, I would recommend Hagerty or Safeco and looking for the specific language Jody mentioned.

:captain:

[Gmachine1911]

I just moved my policy to Alex with Larue Classics this week. The process was easy. I was able to dictate how many miles I anticipated driving the car. After asking lots of questions, I feel completely comfortable with the coverage.

[RdHuggr68]

I am searching the ins. market to replace my current (ANPAC) insurance. I have all of our vehicles and house with ANPAC and I am searching for the same style insurance policy.
I was on Larue's website and read this:
Our policies offer sensible limits that let you enjoy an occasional leisure drive.

It seems like Larue does not want you to drive your vehicle much, granted I have not talked to them yet (occasional) means they rather have you keep it under cover than drive it.

[Gmachine1911]

I am searching the ins. market to replace my current (ANPAC) insurance. I have all of our vehicles and house with ANPAC and I am searching for the same style insurance policy.
I was on Larue's website and read this:
Our policies offer sensible limits that let you enjoy an occasional leisure drive.

It seems like Larue does not want you to drive your vehicle much, granted I have not talked to them yet (occasional) means they rather have you keep it under cover than drive it.

All I can tell you is that I set the limit on the annual mileage when I signed up. As with any specialty insurance company, what they don't want is your "specialty car" (which is insured for as much as a nice house) being used to drive to work every day where it's exposed to more chances for theft, collision, etc. that's why they call it insurance, you have to determine the balance between what you want to pay and what restrictions you can live with based on how important the car is to you. Like someone else here said, it's like Vegas...the house will always win, however, if you ever suffer a total loss you'll be glad you have it. Give them a shout and ask questions...