How to properly insure a Challenge Stradale with values on the rise?

I insure all my cars with State Farm. They have been good to me over the years. However I recently had a conversation with my Agent regarding my CS and explained to him that the values are approaching $300k for examples similar to mine. I want to make sure that I am properly covered in case of a total loss. He was a little puzzled on how to respond and is actually doing some research to figure out if I am protected.

I want to hear from other CS or Ferrari owners whose value on their cars have increased over the years. What are you doing to protect yourself with insurance? State Farm is based on "market value". Not sure what that means when the range of CS's are from $150-300K.

 

I had State Farm for many years for my Exotic cars but changed to Hagerty Ins. about 8 years ago because they have an "agreed value" policy. So you pay based on how much you want to insure your car for. I've been updating the value and paying the difference. Still have State Farm for my daily drivers.

 

On the flip side watch What's my car worth today. They did a piece on a red CS from Cat's Exotics. It sold for less than 90k

 

I'd like to watch that. Any links or ideas what season it was? Recent? Thx

 

I just watched the episode last night. They also had a black enzo on. Season 6 episode 8. You could reach out to Roy or his his son Jonathan that was featured in the episode for more details.

 

I have the same question although I have Allstate. I talked to my agent and he said they would pay the replacement value for the car. I advised him of the rapid appreciation and he said it didn't matter. Not sure if it helps but I do have it in writing from him in an email.

 

Research that car. It was a car with considerable history. When I saw that TV bit the 1st thing I said after noting that Whats my car worth did not mention its history was "now the car experts will claim Stradales sell for $84K"

Here: http://www.challenge-stradale.com/133311.html

Looks like (just as I feared) that it may have already started. That damn episode will play 100 times too, and more peeps will think the same.

Okay. I had a late specialty car insured with Allstate that they paid out a claim on. They gave me OVER current value for it (total loss) and did indeed pay replacement value on it. It was an excellent experience. I insure my Stradale with them for that same reason.

 

Thanks. This is something I need to look into. Curious what value you are putting on your CS and how much do you pay? Did you have any discussion with State Farm about their policy before making the switch?

 

How do they determine Replacement Value? I see the same pissing war here unless you agree up front what the value is? Otherwise it gets subjective.

 

No matter what is said. This sale will be considered and be part of the overall averaging. When you do have an accident in any Ferrari or equivalent, you will need to make the case as to replacement value.

 

+1. The weight is on your shoulder in a "cash or market value" policy in trying to prove that your car is worth 2 or 3x what you bought it for. You don't have to worry when you have an agreed value policy, and this agreed value can be increased by you every 6 to 12months if needed. The only catch is that the premium will increase also. That is why I recently switched from Allstate to Heacock (which has better rate than Hagerty) for my CS and keep Allstate for my DD. That's why companies that don't normally deal with collectible cars like Allstate and Statefarm only do market value policy since they know that almost all cars will depreciate. My Allstate agent recently told me that Allstate just came out with new policy earlier this year stating they will not insure cars over $200k (not sure if this this true and may be somebody can confirm this).

 

State Farm could not match it. They don't have agreed value. The insurance company should not care how much you paid for the car. It's what you think it's worth based on the market and your individual car. I have it at $325k for now so i don't keep changing it. As for price, each person is different based on many factors.

 

Go with a stated value policy and update when you see a material bump in market price. Hopefully never need it but if you do, a bit smoother claims process

 

I have had this conversation with PURE insurance. They go the extra mile (they outta since they charge the extra dollar, too!) and they have options on payout.
1) they will simply pay the existing market value on YOUR car, regardless of which direction your values went.
2) if the vehicle is unique or special, and you REALLY want to keep it (say for an irreplaceable limited number Ferrari) they will pay for the car to be fully restored rather than just 'cut a check'.

 

Ask about state farm "agreed value". Its different from stated value in that you have to justify the valuation (ie, hagerty prices, appraisal, etc. vs. you just tell them what you think its worth and they base your premium based on that).

It is a pain to get it through State Farm underwriting, however in my experience i) it costs the same or even less than your regular State Farm policy while the stated value costs more and ii) there are no specific use restrictions in the policy rider even though they ask you a bunch of questions upfront about whether you show the car once a year, etc. There are clear usage restrictions with a stated value policy from Leland West, etc like can't drive to work, where its parked, restricted drivers within the family, etc.

 

Interesting. So you are saying that State Farm has a agreed value policy? Sounds like from all the comments that this is the only way to go.

 

After fees it sold for 92kish, it was fixed up and resold for around $140k per Scottsdale ferrari website.. nice little profit for a car sold under market value..

 

It sold within days at Scottsdale Ferrari. It was a deal at auction, was a deal at Scottsdale and not sure what it's worth if it were to sell again.

 

That show was recorded in January. I think the market at the time was between 130k and 165k. I have no Idea why it traded for 80k.

 

I spoke to my State Farm Agent today and he agreed that I would be better protected on the CS with an insurance company like Hagerty. He said the book value on the CS today through State Farm is around $180k. I believe I have a gem that would get high market today so I am exposed in a total loss situation.

I am going to talk to Hagerty about a rate. Would you guys agree that they are the best for these cars that are appreciating in value?

 

Just put a call into Hagerty myself . Looking to switch over from State Farm

 

Some stated value carriers to compare are Haggerty, American Collectors and American Modern (who sells directly and through brokers such as Leland West, Heacock and Barrett Jackson -- the pricing should be the same through any channel).

In my case, American Modern ended up being the cheapest and I got good service through Barrett Jackson in pricing out and setting up the policy. Haggerty would have been over 50% more.

In any case, make sure you read the rider and can live with the restrictions. On my policy, you quite specifically cannot use the car to drive to / from work, to / from school, as a substitute car for your daily driver in other capacity, etc. Which is one of the advantages of State Farm agreed value (if you can get them to underwrite a value you agree with).

Curious if anyone has experience actually making a claim with some of the carriers mentioned above (for full value of the car or otherwise)? That's a bit of an uncertainty.

 

Here is a good post on the topic of insured value from JohnK posted in the 355 section.

 

I just heard a mint low mile CS sold for $300k USd

 

I live in So Cal and have my daily drivers insured with Allstate. My agent suggested I call Hagerty directly for 'agreed value" coverage on my Ferraris. I insured with them for about 3 months when I discovered Grundy offered the identical agreed value insurance, zero deductible, etc for 50% LESS than Hagerty. Painless application and approval process!