InThePocket

Got it. Excellent explanations guys. Another (probably dumb) question, but here goes: With an "agreed upon value" policy, would the owner have the ability to return the car to stock, keeping the expensive aftermarket bits in the event the car was totaled and a check for the whole amount was received?

ca993twin

JustAnother,

Thanks for the great explanation. Just got the PM.

jackb911

+1 to what JustAnother993 said... Right on.

In the open market, and that is how vehicles are valued by insurance companies, a modded car is almost always worth less than a comparable "stock" version.

Most major carriers will not write a "stated value" or "agreed value" policy on a vehicle that is less than 25 years old.

I was a claims manager for a major insurer for several years. A customer with a heavily modded vehicle generally got an underwriting review following a claim, particularly if he/she was a "difficult" customer. An underwriting review would generally result in a premium hike, or cancellation for misrepresentation in some instances.

Remember, on a normal insurance policy with a major carrier, your premium is calculated based on a stock vehicle at "market value". Panorama asking prices or Excellence value ranges are NOT "market value" in the eyes of the insurer, nor is KBB, Edmunds, NADA, et al. If you have a heavily modded car and expect to be fully compensated in the event of a loss, you need specialty coverage. You get what you pay for.

InThePocket

Thanks again for all your help. I'm a bit confused though. With an agreed upon value policy the owner chooses the amount to insure for, and pays the corresponding (usually higher) premium, no? I would understand the fraud potential with changing out parts on a stated value policy where the owner and insurer have come to a dollar figure on the vehicle as it sits.

I have an agreed upon value policy and actually set it higher than the car's appraisal, without question from the insurer.

InThePocket

[QUOTE=JustAnotherRed993]The owner chooses the amount...within reason. You can't just walk in and say..."hey...I want to insure my car for $100,000 and am willing to pay the upped premium so sign me up"...you'll get laughed out of the office. If people could arbitrarily choose their "amount" ...what would stop them from choosing some ridiculously high number and then going out and totalling their car just to cash in?

Yeah, that I certainly would agree seems fraudulent. If anyone knows of a company that allows that let me know

I'm still not sure I understand the contention that an insurance company has right to the all the aftermarket stuff with the agreed value (not stated value) policy though. Sounds to me like something a hungry attorney could have some fun with, I dunno. Anyhoo, thanks for the input.

InThePocket

Uh ok, I'm sorry you're insulted, that wasn't the intention. You're the expert here, I simply had some questions that I posed to all. I was under the impression that there's a difference between stated and agreed upon value policies, and that the latter seemed like the best idea for those of us with older unique cars, if money isn't falling off the trees in our yard. I find it disturbing that folks suffering a total loss have to relinquish all the expensive updated parts placed on their cars after insuring it, in the case when the originals are available. It was just a question. No claim. Pardon my stupidity and feel free to ignore me in the future.

InThePocket

Insurance guys, you're a hoot, really, but I'll be heading back to a friendlier forum now. Thanks for all your time. It's been enlightening.