Car Insurance

[lcmc]

I just spoke with my State Farm agent. He told me that the only type they write is "agreed" on collector cars. I asked him if my car were totaled or stolen what would I get. He said I would get the amount I had it insured for. The only time they pay less is if it can be repaired. He even spoke to the underwriters on this issue to confirm. He said that is why they take pictures of the car to verify the condition.

[lcmc]

Another thing my SF agent pointed out is that there would be no reason to put a value on the policy if it weren't agreed. They would just pay book like a regular policy. You can only put a value on collector cars. I insured a 94 ZR1 with them and put an agreed value on it. It came back and they said the car was not old enough plus the fact they were treating it like a regullar Corvette. My agent contacted the underwriter and told them it was a limited run car then they OK'd it once they realized what it was. This whole thing with agreed not being offered by regular insurance companies was started by the specialty companies cause they have a hard time competeing with the big guys.

[Mark]

The ONLY way to tell if you have an agreed value policy is to look at the wording on the endorsement.  Don't take your agents word on it, make sure you know what you have.  If the policy says in the event of a total loss we will pay you the amount specified (and the amount specified is what you agreed to), or we will repair it with like parts up to the value of the amount specified then you have an agreed policy, end of story.  If there is any wording in the endorsement about depreciating it, or value on the date of the incident, or the term like value is used then its not an agreed value policy.  There are two examples of agreed value policy wording in this thread, what does your endorsement say?

[rich69rs]

Whoa - let's hold on here just a second - and take Mark's words to heart - you can really get burned here if you aren't careful.

I have State Farm insurance on my house, my car, my wife's car and my two daughters' cars.  I have my '69 RS and my '66 Chevellle insured through a firm that deals with nothing but classic cars - and for a very good reason.

Yes, State Farm will issue insurance on a classic vehicle per an "agreed to value".  They even have run ads in Hemmings and other places touting their coverage.

The "gotcha" is that unlike my current coverage, which will pay the "agreed to value", in all cases, for either of my cars if they were in an accident, were totaled, and deemed not repairable, is that if you have a claim with State Farm, they may not necessarily pay the "agreed to value".  What they will pay is the "actual cash value" or ACV of the car at the time of the claim.  This is a subjective determination made by the State Farm adjuster.  If in his/her opinion the ACV is less than the agreed to value, you will get less than what you were expecting.  Point to remember is that, in all cases, from State Farm you will get ACV at the time of claim.   Whether or not that will actally be what the previously agreed to value is will depend on the State Farm agent and adjuster involved.  It is for this very reason that I have my '66 and '69 insured elsewhere.

In general, the folks that deal specifically and only with collector cars make it pretty easy.  Most of those policies are set up where the agreed to value is what you get  if the car is totaled and not repairable.  In any event, make sure that you understand the fine print.

[camcojb]

Another thing my SF agent pointed out is that there would be no reason to put a value on the policy if it weren't agreed. They would just pay book like a regular policy. You can only put a value on collector cars. I insured a 94 ZR1 with them and put an agreed value on it. It came back and they said the car was not old enough plus the fact they were treating it like a regullar Corvette. My agent contacted the underwriter and told them it was a limited run car then they OK'd it once they realized what it was. This whole thing with agreed not being offered by regular insurance companies was started by the specialty companies cause they have a hard time competeing with the big guys.

That is incorrect. I have yet to see a copy of a State Farm policy that is worded like an agreed value from Hagerty, Grundy, etc. They all have the ACV/OR phrase. Here's a good link to the wording differences and you'd be smart to read the policy very carefully and see which way it is written.

http://www.faia.com/web/2005/08/stated_amount_vs_agreed_value.aspx

By the way, we've had a couple guys on Camaros.net that had State Farm "agreed" policies and lost/totaled their car. They did NOT get the max value of the policy. The adjuster found comps for less and that was that. An appraisal or whatever doesn't matter if they can find a "comparable" car (in their opinion) to yours for less.

Jody

[lcmc]

My policy from State Farm has no depreciation....I don't know what SF did to tick you guys off but I'm telling you like it is. The agreed value is right on the policy. My agent also told me to update the value as the market changes. There is nothing in my policy about Actual Cash Value. Maybe you guys just don't have an agent that knows what he's doing. Mine is a true agreed value policy.....end of story!

[camcojb]

My policy from State Farm has no depreciation....I don't know what SF did to tick you guys off but I'm telling you like it is. The agreed value is right on the policy. My agent also told me to update the value as the market changes. There is nothing in my policy about Actual Cash Value. Maybe you guys just don't have an agent that knows what he's doing. Mine is a true agreed value policy.....end of story!

SF didn't tick me off. Been with them for over 20 years, just not on a classic car.

Could you scan your policy for us? Every one I've seen in every state so far (including Illinois) says something similar to this:

Note: The amount shown in the Schedule or in the Declarations is not necessarily the amount you will receive at the time of “loss” for the described property. Please refer to the Limits of Insurance And Deductible Provision which follows.” Looking at that section of the endorsement, the following appears:


The most we will pay for “loss” in any one “accident” is the least [emphasis added] of the following amounts minus any applicable deductible shown in the Schedule:


1. The actual cash value of the damaged or stolen property as of the time of the “loss”;

The cost or repairing or replacing the damaged or stolen property with property of like kind and quality; or

2. The amount shown in the schedule.


That is the part that gives them the right to look for "like kind or quality".

Jody

[rich69rs]

State Farm has not done anything to tick me off - as I said, I have 4 cars and a house insured with them. I have this discussion with my State Farm agent every year when it gets close to renewal time to see if anything has changed with regard to their collector car policy.  State Farm will settle a claim on a collector car on an ACV basis - which may or may not be "agreed to value".

[lcmc]

I spoke to my SF agent again. He said the only time I do not get my agreed value is when the car can be repaired for less than my agreed value. If car is stolen or total loss I will get the agreed value. He is getting me a copy of policy and as soon as I pick up up I will scan it and post it.

[click]

Danny Im not ticked at SF either, you misread that into our efforts to be 100% sure you are covered. We are looking out for your investment. I have SF for all my other insurance, my agent was groomsman in my wedding and I trust him totally, he even said, SF doesnt have agreed value like the classic insurance companies in Minnesota for sure. That lead all of us to scrutinize policies as the insurance companies really bury their words. Posting your policy will help us see what you are seeing and that can only be good for all.

[JohnZ]

The coverage SF will write varies by state, perhaps due to differences in each state's insurance regulatory procedures/approvals; in Michigan SF does NOT write "agreed value" coverage, although I've seen examples of them writing it in some other states. A careful reading of the section of the policy that describes exactly what they'll pay in the event of a total loss (or related endorsements) will tell the tale.

Education here is important, as many enthusiasts have "stated value" policies, which do absolutely NOTHING for the insured, and those folks THINK they have "agreed value" coverage, and they don't.

[lcmc]

OK...I finally got the scoop from my agent. Here is where everyone is getting confused. He said that when they write the collector insurance it is with a standard policy, then(heres the important part) they issue an endorsement,6171AK.1, which supercedes the standard policy. That is where you get the agreed value. Basically he said it states that as long as the car is not altered from original condition it was in when insured ( like missing parts, let it rust and so on) you get the agreed value of your policy. He spoke with the adjusters on this also and they confirmed. He has a copy of it for me so as soon as I get it I will post it. I think this is why everyone is confused. They are not reading the endorsement 6171AK.1.  Maybe some agents are not aware of this supplement and that is where we see the problems.

[lcmc]

By the way guys I understand your concern and it is appreciated. I just want people to understand my point also.....thanks

[dab67]

All points brought up in this discussion are worthy of consideration especially the one comment from John regarding different laws governing different states. I think ( opinion) no two states have the same laws governing inusrances. Why? I don't know. Maybe wording and coverage have to do with population, climates, claims filed within the state etc etc. Are some insurance companies better prepared to cover specific needs? I would think so. Bottom line is if you research what you "need" and get that in writing with no "hooks", "bells" or "whistles" then everything should be just fine!!!!!!!!!!! I started having my car appraised every two years and update my insurance as such. My car is no numbers matching , original etc etc. but becasue of the value rising every year I have this done.  I  believe you out there that have true numbers matching and original cars are doing the same thing to be on the safe side.

dab67

[KurtS]

Jim,
I had confirmed that SF in MI is not 'agreed value' (as JohnZ also states). Then I ran across someone in IL that had SF with agreed value. Confirmed it was an agreed value policy. Asked my agent and he dug and confirmed that it was an agreed value policy in IL and I still couldn't get it in MI.