8Lug

For those of you with agreed-upon-value insurance, have your raised your value amount in line with the increase in market prices? I raised mine today, since current value is probably 30-50k higher than where it was one year ago.

nle

I just went through the process and raised my agreed value.

Spyerx

on houses? yes. cars? no.

my mileage additions keep appreciation in balance :-)

RAudi Driver

Wondering why this is needed? I recall my insurance company told me when they totaled out my old car that the amount I would receive is what it would cost for me to replace the car in my area. Walk out your front door and find a car. That's the value of your car. I'm under the assumption that they would have to replace the car and that the market would make the value.

Steve Theodore

In theory it should work like that, but if you have the nicest GT3 RS in the country, you won't really have any appropriate comparables. Meaning we can all agree that there is a huge financial gap between a 2500 mile PTS example and my 68k mile Carrara White/Gold car. The problem for people at both ends of the spectrum is that they are less likely to be able to get a perfect replacement.

What agreed value does is take the guess work out and it just says that if my car is totaled/stolen/lost, I get X amount of money. This process eases things as we know what we would get in the event of a total loss. With rare and uncommon Porsche 911s this process is so much easier than with highly collectible older cars, where values can be off by more than $50k. There are so many examples we can draw upon but my favorite is the 1993.5 - 1998 Toyota Supra Twin Turbo. On the books, your bank or KBB might think a great example is worth $35k, and in reality it could be worth $120k or more!

Fisher

I'm betting any loss will be less than the value of my car and insurance will cover the repair bills. Insurance companies remain in business by betting your car will not be totaled, and they know the odds. I have a GT3 and USAA has it covered by their GT3/RS classification, even though GT3s are going for $100K and RSs are $200K. How much extra are these RS owners paying when repairs on both are the same except for a big tail and 1" wider ***.

RAudi Driver

Very interesting . I'm going to call my insurance company and see my options. I don't want to rock the boat as I only pay $150 per year to insure the car.

8Lug

Most insurance companies will not pay "replacement value". They will pay actual cash value (ACV) which is determined using an undisclosed formula. Generally speaking, they use the price of the car when new, then depreciate for age, mileage, and condition. They also use valuation guides like NADA. This method works fine for regular cars that follow a standard depreciation curve, but not for collector cars that may be worth more than they were when new. ACV may be significantly lower than market value, and with low production cars with few listings and large discrepancies in condition and price, it may be very difficult to argue (and win) a market value adjustment claim. NADA value on a 997 GT3 ranges from 65-100k. These numbers are about 50% under true market value. That's where agreed upon value insurance comes in. You take out the risk that in the event of a total loss, the insurance company will try to stick you with some BS valuation reimbursement.

lawrence1

ACV is mainly driven off of "comparable" sales (dealer sales mainly), and active for sale listing, that are blended to come up with the ACV. Book values have little influence on the ACV calculation. That said, most of the issues occur when the insurance carrier "adjusts" the subject vehicle by adding and subtracting to/from the value, in relation to the comparable vehicles they can find on the market, and those that have recently transacted within the region you're in. Those adjustments are subjective and are based on perceived condition and mileage. This is similar to a home appraisal, where they pick a few comparables and then add/subtract $$$ for the subject property.

Anyhow, without getting into the technicalities of it, for a very niche car such as a GT3 or GT3RS, it's worth looking into an agreed value policy. There is little transaction volume to pull from, and older data is not necessarily reflective of recent valuations. It is also difficult to quantity mileage or condition differences, to the average adjuster or service provider (most of these total loss valuations are outsourced to outside vendors like CCC or ADP) that mainly deals with more mainstream vehicles.

RAudiDriver - How do you pay $150/yr? Do you have a 500 mile annual mileage limit on that thing?

Burren

Yes. For the GT3 I use Grundy and have an agreed value plan for what I think the car is worth and the annual mileage limit is 10,000 which should be plenty for me. Costs less to insure than my daily driver.

Waxer

I paid $200k for my RS. I now see them advertised for $275k+

I think one sold from Grand Prix for $300k. ???

im not sure this is enough to make the market. Don’t know.

8Lug

That's good info, thanks. When I spoke to my Liberty Mutual agent, she said the best way to estimate what the ACV would be is to look at NADA and KBB values. That did not make me feel good. She had no info beyond that and that's what ultimately led me to just switch to a specialty provided with an agreed value policy.

Spyerx

last time i checked agreed value policies it was a LOT more expensive for me and limits on use. I put 15k+ miles a year on my "fun" cars... so i just figure if i have a loss i'll prepare for a fight for market values. of course they are going to lowball you at first pass. Oh on top of that state farm gave me a bunch of grief over personal liability policy and cars not insured under SF....

So, what carrier has:
reasonably priced policies
for those who put miles on the cars
with no usage restrictions
?

Waxer

I have Chubb. Best of the lot but that’s not saying much because their not as good as they used to be.

I have agreed value on my fun cars. Values are currently in a bubble. Some blue chip cars like 997GT cars , FGT , 987 Spyder may hold when bubble pops.

If you want to increase agreed value you may need appraisal which will cost you $.

Jayhova

Yup just raised mine on my agreed value policy with Hagerty. They did not require additional appraisal or proof of anything. When doing my research last year Hagerty seemed to have the least restrictions and good balance of price (at least in my geography, Boston suburbs, and situation).

PS this type of policy was not that much more expensive for me and gave me piece of mind. There is ZERO chance a regular carrier is going to payout what a GT car is worth...