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Agreed Value Insurance: Why?

Discussion in 'Ferrari Discussion (not model specific)' started by EastMemphis, Jan 4, 2020.

  1. EastMemphis

    EastMemphis Formula Junior
    Silver Subscribed Owner

    May 25, 2019
    815
    Memphis, TN
    Full Name:
    John
    I have a gated 360 Spider, pretty much stock, in nice condition, a Hagerty #1.5 or 2. I paid about average for it. My USAA insurance with a high deductible is very reasonable, about the same as our S550.

    I got a quote from Hagerty for agreed on value insurance with a lot of restrictions. It was almost twice my USAA policy.

    So why would my regular car insurance from USAA not be good enough? If my car burns to the ground or is otherwise totalled, I assume insurance would cover (minus deductible) replacement.

    I'm no insurance expert nor did I play one on TV so I'm at a loss as to why I would pay extra for a gold plated policy?

    Thanks in advance for your comments.
     
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  3. JaguarXJ6

    JaguarXJ6 F1 Veteran

    Feb 12, 2003
    5,440
    Black Hawk, CO
    Full Name:
    Sunny
    Have it appraised then regular insurance is fine. They will go to market or black book internal value without an appraisal in event of a total loss. Agreed value insurance means they write you a check and there is no negotiation if market starts appreciating. But also covers you if it goes soft too. All depends what's for sale and they value it internally going with regular insurance. I have regular on my F430, costs me 206/mo through State Farm. USAA does not do well in Colorado with exotics and wanted over 325/mo. And I've been a member for over 19 years with USAA!
     
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  4. V4NG0

    V4NG0 Karting
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    Dec 14, 2018
    225
    Looking for parts NLA
    Ask your insurer what they will give you in the event of a total loss. I did for my TR, didn’t like the answer, and so ultimately went with a specialty policy.
     
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  5. carnutdallas

    carnutdallas Formula Junior
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    Nov 11, 2010
    873
    Dallas Burbs
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    Rob
    Well said and presented. HAGERTY is high as a kite as far as I am concerned. Appraisal is the way to go.


    Sent from my iPhone using Tapatalk
     
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  6. 911&F430

    911&F430 Karting

    Oct 14, 2014
    118
    Atlanta
    One thing to consider is: would you want the car repaired even if the repair cost was high enough for a regular ins. policy to total the car? For example, if it's a special car to you that can't be replaced and just getting the money to buy something else isn't what you would want. In that case, you may want to insure it for a higher agreed value to cover repair costs rather than just replacement cost.
     
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  8. 911&F430

    911&F430 Karting

    Oct 14, 2014
    118
    Atlanta
    Btw, I see others got high quotes from Hagerty but I saved over $8k/year by switching to Hagerty from GEICO. Not sure what all figures into their calculations, but that was my personal experience. I saved a lot of $ and got a better policy. I've had one claim with them so far and am very happy with how they handled it as I probably would have lost my car for good or had to sue the unscrupulous shop in order to recover it if it weren't for Hagerty stepping in.
    I also really like what Hagerty does to support the car community and driving enthusiasts.
     
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  9. RedNeck

    RedNeck F1 Veteran
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    Jul 8, 2016
    5,996
    The CSA
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    Me
    Hagerty might be the flagship of agreed value/collector's insurance, but they aren't the only one. They are significantly higher than many others. I pay $1300/year from Grundy, valuing the Ferrari at $80k and the Z06 at $25k. Went with them since most other insurance companies won't take into account the additional value having a gated manual. For tax purposes, the state of Georgia only valued my car at around $30k, didn't want to get screwed by a "book" value if something were to happen. Just like any other insurance, shop around.
     
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  10. EastMemphis

    EastMemphis Formula Junior
    Silver Subscribed Owner

    May 25, 2019
    815
    Memphis, TN
    Full Name:
    John
    It's a car to me. I've only had it a few months so haven't done anything special to or with it. Maybe after a few years, I'll feel differently but for now, I would be fine with a check that covered the replacement. USAA has been extremely reasonable with us for the claims we've made over the years so I trust they would continue to do so. Maybe naive.
     
  11. carnutdallas

    carnutdallas Formula Junior
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    Nov 11, 2010
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    Rob
    Naivety....INSURANCE COMPANIES are the enemy. Every claim stands on its own and history has no bearing. Know your policy, protect yourself. I have a few small stated values on my Vettes. Cause I don’t drive much and it is cheaper to insure that way. But an appraisal is great advise for an at risk policy which is what standard insurance is. You settle the value after and they use a CCC1 software to determine value. It is geared to their benefit. HAGERTY is high. USAA has a stated value policy co they work with. I use them and happy, but don’t kid yourself. The adjuster has one goal and that is cash conservation during a claim.


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  13. 911&F430

    911&F430 Karting

    Oct 14, 2014
    118
    Atlanta
    I can only speak from my personal experience but USAA was a little more expensive than GEICO and both of them were more than $8k higher than Hagerty for me.
     
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  14. V4NG0

    V4NG0 Karting
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    Dec 14, 2018
    225
    Looking for parts NLA
    Remember the business model of insurance companies—it’s actually simple:

    Maximize premium payments (from you)
    Minimize claim payments (to you)
     
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  15. technom3

    technom3 F1 Veteran
    Rossa Subscribed

    Mar 29, 2007
    6,351
    Phoenix AZ
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    Justin
    Hagerty is EXCELLENT when it comes to repairs though. They are car people and understand billy Bob's cant fix a Ferrari and it needs to go to a specialist or an independent.

    Other insurance companies likely will not grant requests for proper finishes and factory parts and using proper repair specialists.

    They do an excellent excellent job on the claims side.
     
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  16. killer58

    killer58 Formula 3

    Jun 30, 2010
    1,142
    CA & DC
    I strongly suggest you read your policy, I’m willing to bet your assumption is false.
    USAA were VERY specific when I insured my 456 M, they will Not cover replacement or stated value.
    And it was quite shocking to hear the value they currently place on the car.
     
  17. V4NG0

    V4NG0 Karting
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    Dec 14, 2018
    225
    Looking for parts NLA
    This is exactly what I was referencing in post #3.
     
  18. daytona355

    daytona355 F1 World Champ
    BANNED

    Mar 25, 2009
    12,120
    London
    Full Name:
    Sid Korshak
    Insurers use the minimum value of a car, and work upwards only upon representation, usually a legal professional. Their ambition is to settle every claim, but to do so at minimal cost. Don’t be fooled by them talking nicely when you are paying your premiums, the friendly lady on the phone to renew is there to collect your money. The Rottweiler they employ to drive your claim won’t be so friendly. We have special cars, all of them, and agreed value for a few extra bucks is like using a genuine tested part over a facsimile part by a lesser known alternative, would you save a few bucks on a cam belt or f1 pump if it weren’t tested, yet was a few hundred cheaper? No, you’d buy the guaranteed/warranted part, same with insurance for exotics, pay for the cover you want to have, if you want a true claim value, get it agreed upfront, negotiate, but PAY FOR WHAT YOU WANT. It’s the only way to make sure you don’t have to Swap your F430/456/599 for a BMW M4 because they’ve chipped you for $20k because bottom trade value is lower, even though your car had 10 miles on it, a Full ferrari history, and Michael Schumachers genuine hand written signature on the front seat!
     
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  19. Ralph Fox

    Ralph Fox Rookie

    Jul 7, 2014
    2
    Hi all,
    I like Haggerty and the declared value. I drive a 1986 Alfa Romeo that I have had for 32 years. I was being raped by a regular insurance company. I sent pictures to Hagerty and they gave me a price that is a twelfth of what I was paying. I hope I never need them but if I do...
    Drive more,
    Ralph
     
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  20. KC360 FL

    KC360 FL Formula 3
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    Jun 20, 2017
    1,249
    Melbourne Florida
    Full Name:
    KGC
    I got bit really hard with State Farm when my old 911 3.0 Carrera was restored. . A teenager ran a red light an totaled it out for me with only about 1500 miles on the restoration. State Farm came back with a payout of about 10K -- after assuring me that they had a "special adjuster" for just such instances. Never again. It was a "stated value" policy. When I questioned the "stated value" we talked about to my agent she informed me it meant in their language : "that amount is the most we will pay out" Nice deception, huh?

    Agreed value is the only way to protect your investment-- no matter how reassuring your agent of the run of the mill auto insurance companies seems to be. Pay more and be secure or ask yourself if saving $$ is worth the risk.

    As Vinny said above in his post:
    "Maximize premium payments (from you)
    Minimize claim payments (to you)"
     
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  21. bill brooks

    bill brooks F1 Rookie
    Silver Subscribed

    Jul 30, 2007
    3,418
    waynesburg,pa
    Full Name:
    bill brooks
    i've owned my 328 for 13yrs. it has always been insured with an agreed upon value.
    i started with erie, then when premiums got too high, the erie agent switched me to a speciality firm. they used erie's original appraisal no questions asked.
    the new premiums are about 60% less than erie's. they also dropped the winter lay-up clause from my policy which erie required.
    i've had no problems with the switch so far.
     
  22. rquad

    rquad Karting

    Jul 26, 2019
    77
    Georgia
    My 360 is insured for $50k (I know, a little low) stated value, and my Nova for $25k stated value through Heacock. I think it cost me about $600 per year for both cars. Restrictions are: No one under 30 can drive them, no more than 3k miles per year, and must stay in a locked garage when not in use. I'm fine with the restrictions, but may pay for more miles before the year is out. You guys are talking about slightly more expensive cars, but it sounds like most of you in this thread are paying *way* more for your insurance.
     
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  23. justkuz

    justkuz Rookie

    Jan 31, 2016
    1
    I have my F355 spider insured with American Collectors Insurance which I was introduced to through USAA. The rates are very reasonable with an agreed value policy. There are mileage restrictions (2500/year), requirements to store in a garage and age restrictions for drivers but it saved me a ton of money each year. I'm paying less than $1k each year for the policy on the car. The savings get even better when you have more than 2 cars on the policy because they don't charge extra for liability on cars 3 and up. I've got 5 cars with them an pay about $3k a year for all of them combined. The agreed value is usually determined by the purchase price of the car plus and additional money you put into it for customizations or improvements that you can show receipts for.
     
  24. Keysersose

    Keysersose Rookie

    May 31, 2019
    14
    Full Name:
    John W
    I'm buying a 458 Spider - I'm with Progressive and they referred me to Hagerty - Hagerty refused to even quote it - Reason is we have 2 drivers (wife and I ) and presently just one SUV. They want me to have another vehicle - I guess on the assumption I would drive the 458 less. Told them most I would do on the 458 is around 1-2 K a year, as we are retired snowbirds, and live in 2 homes. What they should have offered is to insure the 458, and put on a mileage restriction. I would have been fine with that.
     
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  25. vincep99

    vincep99 Formula 3
    Silver Subscribed Owner

    Jun 8, 2009
    1,809
    My independent agent recommended Grundy agreed-value for the 458 and Farmers for my Z06, for the best value. Nice thing about Grundy is that they will flat-bed it anywhere I want, so I would not have to pay extra to get it home.
     
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  26. V8Fun

    V8Fun Karting

    Aug 16, 2010
    135
    Chicago West Suburbs
    Full Name:
    Mike
    I have Cincinnati insurance for my F430. It's an agreed value policy, and I've put the value a little higher than market for the car. I pay under $800 per year!

    I put them to the test last year when a hail storm came through my area (I have all coverages with them, including homeowners). They gave me complete replacement for the siding, roof, deck, and didn't blink at the cost to remove the hail damage from my wife's DD (Ferrari was under cover in the garage, of course). Everyone else in my area with State Farm and Allstate had major battles on their hands to get partial replacements (i.e. one side of the house, one side of the roof, etc...) when I had everything replaced with no hassle.

    It's the most affordable I've found (by a significant amount), and I couldn't be happier with the pay-out when we had an issue. I can't forsee ever moving away from them.
     
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  27. Neil22

    Neil22 Karting
    Silver Subscribed

    Nov 4, 2018
    173
    Oxford CT
    Full Name:
    Neil Silberkleit
    I have been using Haggerty for over 30 years to insure my old muscle cars. Still have one left on their policy. love the unlimited mileage and can use the car locally as long as its not a primary vehicle.

    With my 30 years and no claims, I asked Haggerty to insure my 360 I purchased 2 years ago and they refused since I had not owned an exotic before, claimed I needed a resume of ownership.

    Currently my car is insured with State Farm with their replacement cost. The policy is quite reasonable (less then Haggerty) I have not tested this with a claim. My experience with insure is back in 2003 when I lost a Trans Am to a drunk driver. The original offer from the insurance company was not adequate to replace the car! After some research I found you could argue the claim amount, if you can prove their offer was inadequate. It does put the onus on you to do the research and present it to the in insurance company. I was able to get the insurance company to pay 30% more based on my research.

    I recently went back to Haggerty to insure the 360 and they will now insure the car. There is one big restriction - my wife and I would like to take the car on vacation in the New England area. They frowned on the use of the car for vacation travel even though the milage not exceed 3,000 miles a year. So the car is still with State Farm we use the car to go anywhere - In New England we don't use things much for 3-4 months a year and State Farm allows me to suspend the insurance leaving comprehensive only while the car is hibernating. This helps keep the cost down.

    I like the agreed value policy great protection just need to decide if the use of the vehicle matches the policy.
    Don't want to give anyone a loophole not to pay!
     
  28. sharkeys

    sharkeys Rookie

    May 13, 2012
    6
    Miami, Florida
    Full Name:
    Jack Sharkey
    Quite a discussion. I insure for fire, theft, hurricane, flood, etc etc., any damage for any reason, through JC Taylor in Darby Pa. I have a collection of cars. My GT5-S is insured for $150k, two other Panteras, one for 75k one in body shop for 35k., 1962 Corvette for 50k. My annual premium is $600 & change for over $300k in vehicle coverage. Why not call them, cost you a few minutes of your time. I've been with them 20+ years. If you have a lot of cars, they call your policy 'Large Line' or something, offering an additional discount.
     
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