State Farm wants PROOF my testarossa is worth $120,000

I've had State Farm for 25 years, lots of cars, houses, etc.. Never have I had them ask for the value of a car to insure...Never! and why demand on a value to insure?, Maybe I'm missing something, but when there is a total loss, aren't they required to pay what the car is worth at that time?
I haven't had many claims in my life, but the one time I had a car stolen, they gave me an offer, and I was able to prove that the "market Value" was higher, and we settled on an amount.... That car wasn't an exotic but I'm not sure why it would be different.
I think the burden would be on them to raise the premium if and when they discover the car they are insuring is increasing in value.

Am I missing something?

 

1. ask them to find a perfect one for $90k
2. get a quote from Grundy (bet it's less than $1000 on $120k) and show that to them
3. find a local dealer and ask them for a quote

 

Recent auction prices for TR's. Actual numbers people are paying for these cars is hard to ignore.

 

Get an appraisal. In southern California, I'd recommend Gary Bobileff, but I'm sure there are credentialed appraisers in your area. (A guess here, but State Farm probably doesn't want to take the hit for a lot of fraudulent claims if the current values end up being a spike. It takes very little to total a TR if values sink back down the $50K range.)

Regardless, Hagerty is silly expensive. I have my 356 Speedster and 308 QV combined on a policy with Chubb, for far less than $2800 -- and I live in San Diego, which isn't a cheap place to insure a car.

 

Yes, I think you are. See my post above.

Also they won't insure the car for more unless you, the insured, request it. The insurance company doesn't want to create a potential profit situation for the insured by writing a policy that significantly exceeds the value of the vehicle.

Agreed value is contractual. The amount on the contract is the amount paid. No one needs to prove value at the time of a claim. However, the insurance company needs to be damned sure the policy is written for a fair amount. It is actually very different from our daily driver-type policies, where the value is determined at the time of the loss.

 

If you have agreed value, they want some support for that agreed value. It is one tool in avoiding the moral hazard of insurance.

I have just send them recent auction prices and that has worked in the past. The run up in value on TRs may be surprising State Farm and they are being cautious.

 

I guess I agree on an "Agreed Value" policy, but State Farm has never asked me for the value of any of my cars.... When I buy a car, I call them, give them the VIN and mileage and they insure it, They have insured many Lamborghini's, Ferrari's, Porsche's, Lotus's, etc for me and have never asked me for what I believe the value is.

If I total my TR or Murcielago, or any other car, the payout should be the amount the car is worth at that time....If they feel they need to raise the premium, I guess its their prerogative to do that.

 

When you say "they won't insure the car for more"? More than what?, I don't want it insured for more than its value...BUT I do want it insured FOR the value, and they are in a better position than I am to set that.

When most cars depreciate each year, does your insurance go down each year because your car is worth less?

 

When your insurance company is not in compliance with your requirements it's time to search for competitive quotes. I'm sure they'll be quite accommodating when you tell them there's another company willing to work with you.

Best of Luck!

David

 

I fought State Farm tooth and nail, 6 months ago for my 14k mile Testarossa and was able to get $100k stated value.
Just spoke to my agent today about raising it to $120k and they said that I needed to provide comps. That should not be an issue.

 

I'm with Grundy with my Ferrari's. My renewal was actually today. I had my 86 insured for 85k (stated value). I asked to increase it to 150k. They increased it without any questions. It took about 5 minutes. My premium jumped from around $550 a year to about $975 a year.

 

Bo, ask them to prove to you their sources, then ask them about a 'Broker of Record....something'. A 'broker of record' is the form one insurance company gets AFTER the insurance has been swept away by another company. In other words its a shot across the bow that you will move your business.

On second thought you should shop your insurance every year as companies raise and lower rates based on their gains and losses in your area. They have no problem raising them, but rarely lower them with out prodding.

 

I've shopped Grundy and Haggerty and State Farm was between 50% to 75% cheaper. Just added a 550 Maranello in addition to the T.R. and pay $1300/year for the both of them as classic vehicles.

 

Kris: what is "comps"?

here in germany the insurance needs a certificate of the value of the car ( for exotics ).and for this amount then they insurance the car. good would be to renew this certificate every 3 years.

 

"Comps" is short for 'comparable'. The the insurance company wants to see comparable (comps) vehicles to justify the new value.

 

ok, thank you for explaining

 

Where I am in the UAE insurance for such cars is a huge problem. I do know though for a fact that are a huge number of specialist car insurance companies in N.A. when I browse through the classic car magazines I buy.
Having said that, which ones are the best and more competitive - I would not know first hand, but am surprised that it would be that tough to follow up on in the this day and age
Best of luck !

 

Here in my country, people are super happy about the idiotic prices but are howling about the doubled or even tripled insurance ....

Makes sense imo ... so .... stop complaning

 

+1 on the quote from Grundy (I have Grundy)....they wanted bonafide"ies" too with my request for an increase.. I also sent them auction results as other Fchat members have already mentioned...had no issue thereafter...

 

EVERY Testarossa is exactly the same in the mind of the uneducated. What distinguishes them is the condition and originality. This IMO must be seen in person for a true and thorough evaluation otherwise it's no different than quoting ads or auction sale prices.

I've never heard of an accurate appraisal short of seeing and touching the car but could be wrong. Any dealers near by? Could be worth $20k to you to take a nice drive down.

 

There should be plenty of auction sales around to justify $100k+ in the TR section. Even ebay's sales can be used.
One noteworthy point with State Farm, talk to your agent about their coverage. They have a binder which states that they can potentially deny coverage if there is a loss during a non "auto show" event. I spoke with my agent and he reiterated that it is only a concern if you use your vehicle as a daily driver.