Qualifying for Stated Value Insurance? | FerrariChat

Qualifying for Stated Value Insurance?

Discussion in 'Ferrari Discussion (not model specific)' started by BruceC, Apr 23, 2021.

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  1. BruceC

    BruceC Karting
    Silver Subscribed

    Apr 26, 2018
    249
    Tucson, AZ
    I recently decided to go for a stated value policy having swapped my 430 Spider for an F12. American Modern was competitively priced ~ $1,000/yr less than Hagerty for comparable coverage, so I applied 2 days ago submitting the required 4 photos of the car + 1 in the garage. Two days later they came back contesting the value of the car (I asked for exactly what I paid for it) and stipulating the following additional information request...

    "High Performance Driving Experience (Exotics & KIT cars) a. Years of high-performance ownership (all household members):_______ b. Years of high performance operation (all household members): ________ c. List your High-Performance Driving Experience & Car Ownership. (Year/Make/Model, Engine size/HP, Year to Year dates operated, Annual miles Driven) d. List all hobby related clubs and events participated in. e. List driving courses, license, driving education classes, etc. completed. f. Will the vehicle be used for business, commercial, or rented to others? thank you"

    Is this standard practice for a stated value application? I was a little perturbed at being challenged on the car value. If I'm willing to pay for a certain level of replacement value that's well within the market range for the model car in question, why is that value even subject to question?

    I did my best to answer their information requirements, but asked my insurance broker that if American Modern isn't satisfied with the information or can't underwrite my vehicle within the next week, to just move on to Hagerty..... or is this how stated value applications work? BTW, my driving record is unblemished and I'm in my 60s, so not some youngster out to explore the limits.

    Meantime, my new to me F12 sits in the garage uninsured.
     
  2. ginoBBi512

    ginoBBi512 F1 Rookie
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    Oct 9, 2016
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    GINO RUGGIERO
    #2 ginoBBi512, Apr 24, 2021
    Last edited: Apr 24, 2021
    I have American Modern, and they dont ask me any of that, I have agreed value as well, in any event, whats the difference, some companies will not even give you an agreed value with a new Ferrari, I cannot get an agreed value on any of my new Ducatis, or my Hyabusa and its a 2000. Most agreed values are not able to be had unless you have a collector car anyhow, or an old motorcycle thats not High Perf.

    Thank you
     
  3. Dave Bertrand

    Dave Bertrand Formula Junior
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    Dec 24, 2005
    770
    Castle Rock, CO
    I've never heard of those types of questions being asked, but I did have an amusing exchange with Leland-West the first time I tried to insure a Porsche with them. One of the pieces of info they required was to know what my "regular" car was. When I told them it was a 2 year old Jeep Wrangler, they declined to offer me a policy because my other car wasn't "comparable". Their explanation was that the Jeep wasn't nearly as nice as a Porsche and therefore I'd be tempted to drive the Porsche more than their mileage limit permitted. Isn't that ridiculous? Some of these collector insurance companies can get a little flakey, but they've never challenged me on the requested values. I've insured several cars with Hagerty and I've found them to be very good, and they treated me very well when I filed a claim.
     
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  4. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
    2,475
    Longmeadow, MA
    Full Name:
    Eric
    Stated and agreed value are not the same

    And I would move on to Hagerty or Grundy for an agreed value policy


    Sent from my iPhone using Tapatalk
     
    BruceC likes this.
  5. USMMA90

    USMMA90 Rookie

    Mar 29, 2021
    40
    Full Name:
    Bill
    American Modern tends to be the most strict of the stated value insurance companies, I would move on to Grundy (Hagerty as a last resort)
     
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  6. BruceC

    BruceC Karting
    Silver Subscribed

    Apr 26, 2018
    249
    Tucson, AZ
    Excellent advice & thanks to all that replied, once again demonstrating the value FChat forums.

    Secured my stated value policy today with Grundy - very easy to work with. No inane questions about whether or not I'd ever driven a performance car in the past and almost $1000 less than Hagerty and $400 less than AM for comparable coverage and what appears to be less oversight on annual mileage.
     
  7. CoreyNJ

    CoreyNJ Formula 3
    Silver Subscribed

    Apr 17, 2006
    2,004
    New Jersey Shore
    I have Condon Skelly and for agreed upon value they just needed to make sure it was within a range for the model and wanted pics of the car and when I went to increase the agreed upon value, they wanted documentation that I am maintaining the car and investing in it's condition (i.e. PPF receipts, new exhaust, ...)

    FYI: Everyone should take a look at your policy with the values increasing for used exotics these days, you want to make sure if anything happens and the car is totaled you can get another one in similar age/condition.
     
  8. Balsamina

    Balsamina Formula Junior

    May 19, 2010
    927
    San Francisco Area
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    S
    This. Stated value is POLICYHOLDER's assertion of the value of the car. The payout for a total loss claim will be the LESSER OF (a) the stated value or (b) the actual cash value. Agreed value is when INSURER agrees on the value to be paid in the event of total loss - regardless of what the actual cash value of the car is.

    The questions American Modern posed were to help assess their underwriting risk. All other risk factors being equal, someone who has no prior experience driving high performance cars would be a higher risk of accident/payout than someone with significant experience and training.
     
  9. BruceC

    BruceC Karting
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    Apr 26, 2018
    249
    Tucson, AZ
    Yes, I stand corrected for using "stated value" and "agreed value" interchangeably. The Grundy policy is in fact an agreed value policy - the American Modern proposal for ~ $400 more was for a stated value.

    I understood what American Modern was getting at by their questions, however, asking potential clients to comprehensively list "Car Ownership. (Year/Make/Model, Engine size/HP, Year to Year dates operated, Annual miles Driven)" in addition to their other demands was excessive IMO and furthermore, contesting what I actually paid for the vehicle is just plain insulting particularly when none of the other insurers saw a need to raise similar issues. Bottom line, Grundy won me over with a very competitively priced, no-hassle offering and will continue to get my endorsement when asked.
     
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  10. PMiranda

    PMiranda Formula Junior

    Jul 23, 2004
    574
    Austin, TX
    I wouldn't waste much time with American Modern. They bought out the policy I had with Heacock on my old race car. When I got a new race car earlier this year, very similar to the old one just several years newer, they wouldn't even reply to my request to insure it. I guess they only want to work with an agent but he retired years ago. So I simply got a new Hagerty policy and moved a couple cars to them from Liberty Mutual. I think it's important to have agreed/stated value on good condition older cars since the conventional insurers are very quick to total them based on blue book value.
    Unfortunately I only just started the policy with Hagerty so they declined to cover my "new" 458 but suggested to come back next year after a bit of history.
     
  11. GTFan

    GTFan Karting
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    Dec 10, 2020
    102
    Colorado
    Full Name:
    Scott
    My Porto is covered under an agreed upon value with PURE. They have been very easy to work with - maybe not the least expensive - but my homeowners is there as well. Service has been excellent.
     
  12. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
    7,348
    Weston, MA
    Full Name:
    Paul
    Actually at least a couple are sensible questions. The absolute worst car to insure is a McClaren. Younger people tend to buy them and coincidently are the least experienced with super cars.
     
  13. IloveGT

    IloveGT Formula 3
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    Oct 17, 2015
    2,419
    I had grundy and have hagerty. Never had similar experiences. I will not try to save $1000 upfront if I feel like they will give me more problems later when I am in need. If they are already giving you problem upfront when you are bringing them the business, oh well, you know what I am going to say next.
     
  14. IloveGT

    IloveGT Formula 3
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    Oct 17, 2015
    2,419
    Yes, now I remember both grundy and hagerty did ask my car history portfolio prior and nothing else. The underwriter knows what kind of buyer we are. The op is 60 years old. Price should be very reasonable.
     
  15. Balsamina

    Balsamina Formula Junior

    May 19, 2010
    927
    San Francisco Area
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    S
    Good for you! :)
     

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