Car Insurance question

[peng155]

I was looking through some old post on car insurance, and specialty car insurance... And I took note on what Carl had said about Agreed value ..

Carl said...

"If anyone believes that they have an Agreed Value, that their Insurance Company will honor without exceptions, and pay in full in case of a Total Loss... on their "normal car insurance policy". Then I would suggest that your read your policy carefully again"

And that got me thinking and looking at my policy... When I finally got the car put back together I called my insurance comapny and told them what I had, what I had done as far as Resto/Mod.. We agreed on a value for the car..

I had considered going with Hagerty Insurance, but the restrictions were too limiting for me.. I only drive the car during the summer, and on non-rainy week-ends, But during the summer I want to be able to drive the car to work, or out to dinner if I want...

My current policy is set for market value, not to exceed $15,000.. which I take to means that I need to provide documentation either by classified ads, or what have you to justifiy the car's worth in X-amount of dollars if the insurance company comes back with a low ball figure.

Does anyone have anyother suggestions for car insurance other than Hagerty, or the normal car insurance route??

With as much time, money, and labor I have into the Z I'm not gonna be too happy if something happens and I end up on the short end of the stick with the insurance company...

Thanks...

[Arne]

I went through this with my last specialty car - a '67 MGB. I did a complete, bare tub, ground up restoration on it. I discussed insurance options with many people, and came to the conclusions that true "Agreed Value" or specialty insurance such as Hagerty's did not suit my needs. I too planned to drive the MG to work, etc. I ended up with a normal policy (through State Farm) with the addition that they had a notarized copy of a professional appraisal of the finished car on file, both at my local agent's office and in the Regional office.

I paid about as much for the MG as I did for our 5 year old family car. This must have worked, as about a year and a half later, the MG had an unfortunate run-in with some wildlife. The car was over 25 years old at the time. You can guess what the "average market value" was on a 25 year old MG at the time. The repairs were over $4000 - they paid without a single comment.

When my 240Z is finished, I plan to do it the same way again.

[DougN]

I just completed my annual insurance review with my State Farm Agent, and found out some interesting info. For State Farm at least, they will pay up to your "agreed value" based on supporting documentation (like Arne describes) for any car 1969 or older. Cars 1970 and newer they don't do any type of "agreed value" policy, just "standard insurance" where you have to work very hard to prove the value of your car. My agent said that an appraisal would be helpful in making your case, but there is no guarantee for how much you will get. My agent also said she was going to look for other options to ensure my Z is covered for the value I have placed on it. I will let everyone know what I hear back!

[rtaylor]

I just bound with Haggerty for a $159 annual premium. I was allowed 2500 miles per year. Since my car is not a daily driver the coverage works for me. The agreed value is $15,000. I read the policy cover to cover and it appears comprehensive enough. If any one wishes to read a Haggerty policy, good bedside light reading, PM me and i will send you a PDF version of the policy.

[peng155]

I just bound with Haggerty for a $159 annual premium. I was allowed 2500 miles per year. Since my car is not a daily driver the coverage works for me. The agreed value is $15,000. I read the policy cover to cover and it appears comprehensive enough. If any one wishes to read a Haggerty policy, good bedside light reading, PM me and i will send you a PDF version of the policy.

Thanks.. But I did check Haggerty before I settled on going with my current insurer.. Safeco..

The problem with Haggerty for me was that the car could only be used for pleasure use in the strictest sense.. And I could be wrong here so if I am anyone please chime in and correct me... But unless I was driving my car to, and entered into a car show, or a parade, or used for a pleasure drive... I wouldn't be covered for any type of accident..

Meaning if I wanted to say drive the Z to work sometime during the summer.. and Pow.. I get into an accident.. not covered.. Or say I do head out for a pleasure drive, and I decide to stop off at the store to pick up some items... and Pow I get into an fender bender.. not covered cause the insured car is not to be used to run errands.. But lets say I neglect to tell the insurance company that, and I file a claim.. they pay the repair cost... and find out I had used the car for something other than a pleasure drive... Can you say Insurance fraud???

As much as I'd like to pay the lower premium... it just wasn't worth the potential hassles... and besides what fun is owning a nice fixed up classic car if you can't really enjoy using it??? So in my case Haggerty just didn't really fit me for the way I would like to use the car.

But thanks anyways

[peng155]

For State Farm at least, they will pay up to your "agreed value" based on supporting documentation (like Arne describes) for any car 1969 or older...... My agent said that an appraisal would be helpful in making your case

I spoke to my insurance agent also... and I have the car covered under a classic car writer (or something to that effect) to where in case of a total loss the car is covered to the agreed upon value.. But I also will need to get the car appraised for teh insurance company.

The nice thing about the poilcy was that during the winter months when the car is stored in the garage I can remove all of the extra coverage and just keep the Comp(?) (I can never remember what does what when it came to Collision, and Comprehensive coverage) and just pay that portion of the coverage during the winter months.

I know it's still abit more than what Haggerty would have costed me, but at least I have a little more latitude in the use of the car.

[Carl Beck]

Thanks.. But I did check Haggerty before I settled on going with my current insurer.. Safeco..

The problem with Haggerty for me was that the car could only be used for pleasure use in the strictest sense.. And I could be wrong here so if I am anyone please chime in and correct me... But unless I was driving my car to, and entered into a car show, or a parade, or used for a pleasure drive... I wouldn't be covered for any type of accident..

Hi Paul (everyone)

I have been a customer of the Hagerty for many many years, and I have recommended them to many many Z owners. Of the 150 or so Original Owners on our Z Car Original Owners Register, at least 100 of them are Hagerty policy holders. In no case have I, nor any of them that I know of. - ever been told they had to be going to a car show, or parade. Only that the car can not be used for daily transportation, and that its primary use must be for pleasure.

Meaning if I wanted to say drive the Z to work sometime during the summer.. and Pow.. I get into an accident.. not covered..

Not true - if your normal daily driver was fully operational, sitting at home.. and you just wanted to take your Classic Car to work that day - to show off - or for the pleasure of the drive... it would be covered. It would not be covered IF it was being used "in place of" your daily driver, because your daily driver was for any reason not available for use. In the first case, your purpose is "pleasure"... in the second case your purpose is to get to work and your Classic now becomes a primary means of transportation.

Or say I do head out for a pleasure drive, and I decide to stop off at the store to pick up some items... and Pow I get into an fender bender.. not covered cause the insured car is not to be used to run errands..

Again - not true. If you are on a pleasure drive, you can stop anywhere and buy anything. Again it goes back to your intended and actual use... If your normal daily driver was not available to you, and you were using your Classic to replace its use... your Classic's primary use would be for transportation.. and not covered. If you were actaully out on a pleasure drive - and decided to stop on the way and buy anything.. your primary use would not have changed.. it would still be the pleasure of driving your Classic.. and it would be covered. I tell you this from personal experience...

But lets say I neglect to tell the insurance company that, and I file a claim.. they pay the repair cost... and find out I had used the car for something other than a pleasure drive... Can you say Insurance fraud???....snipped...

Again - not the case at all. If your primary reason for being out in the Classic was for your pleasure - and your daily driver was sitting at home available for transportation use... you would have no problem telling the whole truth.

I believe that whoever you talked to, has in an effort to caution you of the specified limits of the policy, left you with the wrong impression.

I know that the potential hassles of dealing with a Full Line Insurer, on a claim for damages always leaves you dealing with an Insurance Adjustor.. and his job is to settle the claim in the lowest cost manor... That is almost always a real hassle, and we see threads on this forum about it quite often.

FWIW,

Carl B.

Clearwater, FL

http://ZHome.com

[jmark]

Satisfied Hagerty user here as well. I have it on both my '71 240Z & '78 280Z.

[Carl Beck]

I just completed my annual insurance review with my State Farm Agent, and found out some interesting info. For State Farm at least, they will pay up to your "agreed value" based on supporting documentation (like Arne describes) for any car 1969 or older.

Hi Doug (everyone):

With all due respect, your Agent can "say" anything he/she wants, but that will not change the wording, nor the insurance companies definition of what that wording means, in the Policy you receive. Which is why I suggested that everyone read their policy very carefully and very critically, and if they have any questions about what it will or will not cover - they go over the policy with their lawyer.

There is a very significant difference between "will pay up to your Agreed Value".... and "will pay the Agreed Value". (or "Will pay the value stated in the Declarations Page of the Policy)

Cars 1970 and newer they don't do any type of "agreed value" policy, just "standard insurance" where you have to work very hard to prove the value of your car. My agent said that an appraisal would be helpful in making your case, but there is no guarantee for how much you will get. My agent also said she was going to look for other options to ensure my Z is covered for the value I have placed on it. I will let everyone know what I hear back!

Helpful in making your case?... with a true Agreed Value Policy there is no case to plead.

The fact that one has to have, or that one's agent suggests that one keep on hand - an appraisal from an outside source - should tell one that they and their insurance company really DO NOT HAVE AN AGREEMENT for anything other than farther negotiations if the time comes...

When the Classic Car Insurers AGREE to the Value of your car, there is no need for outside appraisals to be kept on hand after the fact...because there is no Claims Adjustors to argue your case with.

I would also recommend that if your State Farm Agent uses the term "Agreed Value" you ask her to put that in writting along with the definition of it's meaning. (she won't do it of course - she'll back pedel and say something like "well I meant to say Stated Value"...

Do let us know what other alternatives she comes up with if any.

FWIW,

Carl B.

[peng155]

Hey Carl....

Thanks for the info... Yes most of my information came from a guy I know that has a 55 or so Chevy that he built for show... now of course his car is insured for 40K so it's a good guess to say his policy is probably quite different from one that I would get.. But than again his car isn't insured with Hagerty, but another classic car insurer...

Is there anyone in particular that you, or the other Zcar owners deal with at Hagerty, that I could call in person to discuss my insurance needs for my Z???

Once again thanks for setting me straight on Hagerty insurance.

[deadflo]

I also have Haggerty, and while they told me I could not use it for driving to work, they did not give me a specific mileage limit per year, as rtayor mentions...

[peng155]

I also have Haggerty, and while they told me I could not use it for driving to work, they did not give me a specific mileage limit per year, as rtayor mentions...

I remember being told the samething when I asked about being able to drive the car to work on an occasional bases... and could have sworn it was someone at Hagerty that told me that...

But at my old age I'm not sure of anything anymore

I did know about the milage restriction through