Why are Hagerty's estimates so much lower for Testarossas?

Quick answer, probably underinsured given the markets quick climb. I only revisit my policies once a year.


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Last year they would not let me go above 185 on the boxer when two sales had just been completed in the low 250s'

This year I will fight with them for 300.

As much as they claim to be enthusiasts, they are insurance people and not on top of the market.

 

I agree with you on the last sentence 100%.

They are slow to react

 

I don't know Hagertys (though their graphs are cool) but if they are like any other insurance company you can bet they will be sharp at using today's value if you have an F12, and last year's value if you have a TR...

 

Are you dealing with Hagerty directly or through a broker? Last year, I started insurance on my Boxer at $200k but quickly bumped it to $325k without any push back. Having said that, I made the request through my insurance broker who made the call to Hagerty. Perhaps this is another tactic for those experiencing problems getting current market pricing coverage for their cars.

 

are you sure ? if you go to the hagerty website and value a testarossa it clearly states high value for a #1 car is $100k... still low, but a far cry from the $68k you assert.... seems like you are not looking in the right place and/or are using old data.

 

Directly with hagerty

 

True, though with hagerty I think it's more useful to view it as a range knowing that condition is not always agreed upon. I paid $114k this month for a 1990 with 25k miles but is all original, virtually no wear to drivers bolster, every record going back to purchase window sticker. Tools etc. red with black. Interior. I feel like I may have ovepaid a little but wasn't seeing any cars that solid out there so I bought it confident of it's quality and knowing it's going to appreciate. There are a lot of testarossas out there but many of them are not quite up to snuff. It's an interesting time for these cars. Still new enough to be considered used cars and purchase from original owner

 

meanwhile sports car market pegs the top value for a Testarossa at $140k and pegs them to appreciate at 25% + this year.

 

As with most valuations, they are typically based on sales, inflation charts for wider markets, asking prices, etc, and both the insurance industry and CPI (Cars of Particular Interest) tend to be between 12 and 18 months behind the actual market - not just for Ferrari but across the board.

 

Numbers don't seem off to me

For Testarossas you have WIDE variations in the pricing, over a 100% swing - from 56k to over 100k. That makes for a challenging average.

The majority of the cars out there are condition 3, but all the asking prices are Condition 1 or 2 (and why shouldn't they ask as high as they can?). Sale prices are a very different thing all together. There were two Condition 3 testarossas at Mecum in Kissimmee and both went unsold at $50-55k. A nicer '86 hit $77k.

Here is another example of a good, but not great condition Testarossa selling @just under $70k: Ferrari Testarossa Base Coupe 2 Door | eBay

I suspect that a good "driver" is worth between $65k-80k realistically and Haggerty seems to be right on target with that. A fixer upper (Condition 4) really should only go for $56k as you have a good $20-30k you probably need to put in to it.

Just my $0.02

 

any links?

 

Agree. We've seen wide variations for 308/328s as well. Lots of fishing now on the part of optimistic sellers.

And I don't think I'd pay $50K for a "fixer" TR - much more cost effective to buy one of the huge number of condition 3 or 2 cars.

 

me either - but I am a big fan of buying a car in as good a condition as I can get (outside of garage queens - sorry but I enjoy driving too much). Still, I know there are budget hunters out there and some people can do wonderful DIY work.

 

I don't have a link but the most recent printed price guide was mailed out to subscribers last month.

 

The data can lag behind a month or more. Depends on how many go to auction and how many get insured. Its an estimate, not a set in stone price. The higher priced cars are not selling fast. Realistic priced Testarossa sell. Hagerty is closer to realistic then not.

 

Its a guide, not an exact science. Some people foolishly spend money on low mileage thinking it means better condition, you can't calculate for behavior like that. Then again, I drive a Honda so my view on mileage is a bit different than Ferrari Folks

Seems to me that as long as they charge you a higher premium that Haggerty won't care what you value your car at unless there is some new fiscal model that insurance companies work from that I am unaware of.

 

speaking of mileage what is considered high vs low for a Testarossa ? Seems there are many under 20k miles