Another Insurance value thread
12-11-2013, 09:33 PM
#16
Three Wheelin'
The issue is that the insurer will total the car if repair will cost more than a maximum of 80% of the value. Then if not a stated value policy they will try to screw you with a blue book value and you will have to fight them. So say you insure a $125k value car insured for $75k ... great ... but they will say the car is only worth $30k and total it for $24k max. Get solidly hit in the front or the rear and you will easily hit $24k. You will then have to prove the value to them - after the fact - and the fight is on. And the most you can possibly get is $75k which is $50k less than you car is worth. Not good and you will probably will have to sue them with (usually) no provision for recovering your legal costs.
12-13-2013, 01:16 PM
#17
Burning Brakes
The 80% of value is by no means a set policy by all insurance companies especially with many Porsche models. Yes they typically use a certain % threshold vs value depending on car but again it varies by insurance company and is by no means consistent. Depending on the damage present they will most certainly factor in the "salvage" value of your Porsche into the equation, in other words what the bid value of the car is to a recycler or salvage yard and you would be surprised at how high the bid is on some Porsche models because of the used parts market, especially since many insurance companies will now specify certain "used" parts to repair cars if it is in your policy. There are cases with certain cars (many Porsche models) that a insurance company gets a salvage bid from a yard that is as high as 60%+ of the market value of the car. Your car might make financial sense to "total loss" by the insurance co at a repair bill that is far lower than 80% of the car.
