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An Insurance gap that could cost you a lot

Discussion in 'Ferrari Discussion (not model specific)' started by worth it, Jan 8, 2004.

  1. worth it

    worth it Formula Junior

    Oct 31, 2002
    299
    North Carolina
    Full Name:
    David C.
    Enclosed with my latest auto insurance policy ( renewal ) was a general notice to all policy holders. It described how the Company ( Nationwide ) is not liable for any loss in value to a vehicle due to any damage it receives. The Company will pay for repair costs and other covered expenses but NOT anything for loss of value.

    As an F-car owner this concerns me - This is why:

    Say I am involved in an accident ( my fault ) and my car is not a total loss. Insurance pays for the repairs and says they are done. I say wait a minute, my car is now worth less because the re-sell market is not going to value my car equal to a similar car that has not been in an accident. Assume $15,000 less - How can I get this loss paid back ? Better question - How can I insure against this ?

    If insurance is supposed to indemnify you back to the same position as you were prior to the accident then this scenario says I am not indemnified. What to do ??

    A stated amount policy is good in a total loss. However I believe it suffers from the same problem above.

    The key here is that the accident was my fault and I must collect from them. If I was hit by someone else I could collect from their liability coverage and probably collect for the loss in value.

    If I have to collect from my policy I would be screwed for the loss of value. BTW they said that the notice was to bring attention to this and that it was never covered in the first place. They were just clarifying.

    Assume they are legally correct - How Do I Insure against this kind of loss ??

    Any ideas are welcome. Thanks
     
  2. Robin

    Robin F1 Rookie

    Nov 1, 2003
    2,893
    Arlington, VA
    Best bet is to shop around. As far as I know, most insurance companies have something to say on this subject, so I'd call around and find one that suits your needs. No reason to stick with a carrier that doesn't meet your requirements...

    I'm sure some others who have looked into this will pipe in with some more specific suggestions. I'd be interested to hear them actually...

    -R
     
  3. robinh

    robinh Formula Junior

    Jan 3, 2004
    622
    Cambridgeshire, Engl
    Full Name:
    Robin
    After the crash (your fault) get out and kick in every panel on the car, set light to it, etc. etc. make sure it's totalled but make sure nobody sees you doing it and blame the 'accident'
     
  4. worth it

    worth it Formula Junior

    Oct 31, 2002
    299
    North Carolina
    Full Name:
    David C.
    Shopping around sounds good but this "rule" is standard in Auto policies - Nationwide was just putting emphasis on it. Switching carriers results in the same problem. THIS MEANS EVERYONE COULD HAVE THIS PROBLEM COVERING THEIR CAR.

    Any ideas on how to cover this properly ?

    As for making sure it is "totaled" - Sounds good in theory but difficult to pull off. I'd rather know I have it covered already.


    With all the Brain Power on this site, I am sure someone has some advise.
     
  5. Doody

    Doody F1 Veteran

    Nov 16, 2001
    6,099
    MA USA
    Full Name:
    Mr. Doody
    everybody should certainly verify whether their insurance company covers "diminished value" claims.

    rules vary state to state as well as company to company.

    here in MA the industry is highly regulated and i believe it is not legal to sell diminished value coverage. i've been told that the only way you can get coverage for that is to buy an "inland marine policy" that specifically covers weird things --- though i have not tried this.

    search the net for "diminished value" insurance claims - there's a lot out there on it, including data on various court cases, etc.

    clearly the insurance companies do not agree with you that statement "[to get] you back to the same position" :).

    if you can avoid it ;) don't damage your own car - you're toast with nobody else to go after. crappy situation to be in.

    doody.
     
  6. GrigioGuy

    GrigioGuy Splenda Daddy
    Global Moderator Owner

    Nov 26, 2001
    22,940
    E ' ' '/ F
    Full Name:
    Yes, I have one
  7. shmark

    shmark F1 Rookie

    Oct 31, 2003
    2,967
    Atlanta
    Full Name:
    Mark
    Does AFLAC offer supplemental auto policies? :) Semi-seriously, that's what you would need to cover something like this. You also said something that needs to be clarified:

    Everyone should be aware that a "stated value" is very different from an AGREED value policy. Stated value is just that, what you are stating the car is worth. The insurance company doesn't have to agree and can (and will) contest it when push comes to shove. Agreed Value policies are more expensive, but they are an agreement between you and the insurance company about your car's value, no contest, quickly resolved. Make sure you know the pitfalls of stated value BEFORE you need it.

    Mark
     
  8. Seve

    Seve Rookie

    Nov 6, 2003
    13

    However, keep in mind that you can recover for diminished value in Texas from the another driver who is negligent in causing an accident. The case mentioned is limited to coverage under your auto policy's collision coverage and not someone else's liability coverage.
     
  9. robinh

    robinh Formula Junior

    Jan 3, 2004
    622
    Cambridgeshire, Engl
    Full Name:
    Robin
    To be honest I wasn't serious about suggesting you total the car as it could get you into serious trouble and not getting any money from the insurance company - I thought I'd added a smily :)
     
  10. TimF40

    TimF40 Formula 3

    Nov 3, 2003
    1,031
    Seattle/Bay Area/NYC
    Full Name:
    Tim
    and to keep a book of matches handy... ;-}
     
  11. adesalos

    adesalos Karting

    Mar 19, 2003
    222
    Texas
    Tillman,
    I had an accident with another vehicle than my Fcar mid 01. bump and run in Houston (seems normal, isn't it?!)...
    Anyway, my insurance company, Nationwide didn't advertise that we could get reimbursed for "diminished value", but since I knew, I asked, and they were helpful on how to fill for it.

    I don't know much after, as I didn't push further because the amount wasn't worth the time at the time.
     

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