I switched insurance carriers recently. They sent me a form for each car, stating the VIN, aproximate milage and maximum insured value. I am to sign each and send them back. Trouble is, the value stated for the '84 is too low.

This is a 5-speed with LSD and great condition paint. It needs syncro work and the transmission makes a ticking sound that doesn't affect performance. Otherwise, an early car in nice shape. To properly replace it, I'l have to pay a premium for another very good example, or sink a couple grand into bringing a rougher car up to par.

I called up about this issue, and now will be talking to someone to arrange a "material damage inspection". They will have a supposedly neutral third party assess the condition of the car, and make a recomendation as to its geuine value. What this inspection won't reveal are the market conditions and availability of simmilar 16v 5-speeds.

Since my previous carrier tried to total this car over scratched paint, I really want to make sure that I've got adequate coverage. Speciality places like Leland (sp?) aren't an option, as this car lives in an open-ended carport (best I can do for now) and is a daily driver.

How can I get the most from this inspection process?

 

Not sure Jessa about your issue. But I love my insurance company. I have an 86.5 and they told me my car is insured for...watch your eyes now...$17K.

Gotta love it.

 

Doz,
I need you insurance co. Can ya PM some info?

Btw, thank for getting the parts to Jason.

 

Me too. I have an '85.5 and your company sounds like it is worth contacting. Who is it?

 

Careful guys...be sure you know what type of insurance you have...stated value coverage or agreed amount coverage. Stated value coverage will cover you up to the stated amount, which doesn't mean you will get that much. So, if your stated amount is $17,000, they might only pay you $3,000 or $8,000 or $9.28. But it won't exceed $17,000. Agreed amount on the other hand, will pay an exact figure. So, for $17,000 agreed amount coverage, you will get $17,000. Understand that I'm not an insurance agent, but this is how it was explained to me by one.

Good Luck, Rich.

 

Hopefully someone in the insurance business can jump in, but many companies will insure your car for "agreed value". No catch except the
premiums reflect the elevated "agreed value". The point being, I can
have my car insured for $25k (based on market/availability/replacement value), but my payments are going to be much higher.

 

1. Provide PROOF of the value you're claiming.

2. Support that claim with receipts for recent parts/material/work done.

3. Provide proof of the replacement cost by showing comparable vehicles sold within the past 90-120 days.

That is incorrect. EVERY policy will have Loss Settlement Conditions. Common words used are:

"If you have a covered loss, we will pay UP TO the limit of coverage or the actual cash value at the time of loss, whichever is LESS."

"The limit of our liability for loss to the property or any part of it is the LOWER of:

1. Actual cash value at time of loss

2. The cost of repair or replacement.

3. The coverage limit as shown on the declarations page."

The biggest difference between a Stated Value policy & an Agreed Amount policy is NOT a guaranteed $$$ amount at loss time, but in the basic wording of the contract.

Bottom line-

BOTH policies are subject to limitations during loss settlement.

BOTH policies will take unreported damage, modifications, abuse, neglect, removal of parts, etc. into consideration when it comes time to cut that check.

There isn't an insurance carrier on the planet that wants to pay for something it doesn't have to. The basic principle behind insurance is to indemnify one for their loss.

That means putting you back where you started, a "no gain, no loss" deal. In real life that obviously doesn't always work out since most of us have deductibles. By the same token it's not fair to expect a 10K miles 1995 GTS 5 spd in exchange for a ratty old '79 with 250K miles...

When one "states" a value or enters into an "agreed value" contract with an insurance carrier you can bet most will want to cover their bet by inspecting that vehicle or at least requiring photos & possible an appraisal by a third party or authorized dealer...

 

This is plain old "stated value" insurance from Mercury.

I just spoke with a rep, and they gave me the contact info for a shop in SF that handles inspections of this nature for them. I have yet to contact the shop, but they sound like a general-purpose shop that works on a variety Asian and European cars (Hondas and VWs?). My they've seen or worked on a 928 before, but I doubt it. There's no way anyone goes near my baby with a wrench unless I'm closely watching.

 

Jessa-

Odds are all Mercury wants is a third party to look at it for readily apparant damage, hence the term "Material Damage Inspection."

As your broker/agent if:

1. The amount of coverage that you & the company agree upon is subject to limitations at time of loss. (Of course it WILL be, but let's see what he/she says)

2. Ask what those "limitations" are.

3. Ask what is required of you, as the Named Insured, to maintain coverage. (other than the obvious premium payment)

What you're after is finding out if they (the insurance carrier) requires periodic inspections/appraisals to verify condition/value.

4. Ask if there are ANY other restrictions or special conditions, particularly:

Annual mileage

Type of driving

Garaging conditions

Many insurance carriers have two common types of coverage/rating bases for older, out of production vehicles.

Some offer EXTREMELY attractive rates for "limited use." (IE: To & from shows/club events/etc. ONLY)

Some are more liberal and will actually state "occasional recreational use" is covered in addition to the above limited use.

Some will have a hard cap on annual mileage & require you to submit pics & a signed annual mileage form on renewal.

The bottom line is $$$$. If you pawn off more risk to the insurance carrier (IE: high value, daily commute driving, no garage, etc.) they'll obviously want more $$$ to cover that risk.

Assume more of the risk yourself & your premiums should be less.
Insurance is a commodity based on supply/demand. At times demand will exceed supply for whatever reason.
(Think of earthquake insurance immediately after the Northridge quake)

Some carriers have no problem accomodating older, high value sports cars, others don't have the capacity or financial reserves...