spender

Hi - I've noticed that the Canadian Red Book values for 997s show values that can only be called almost unrealistically low, probably as much as 25% to 40% below what you could actually buy one for. As a guy who's spent the last year or so looking for a 997.2 I can say with a lot of certainty that I have a good idea where real world prices sit - both vis-a-vis private vendors and dealers.

That being said, what happens if you buy a car for a purchase price that all your "Porsche guy" friends say is a great deal, but which has a Red Book value $20K below what you paid? What happens if the car is written off? It is my understanding that the adjuster would just offer you the Red Book, and then the onus would be on you to demonstrate that your car was actually worth more at the time of the accident.

Anyone have any experience with this?

irobertson

I just went through this with putting my car back on the road after the rebuild. Get it appraised and get it insured to that value. Then there is no argument after the fact if you do have a loss.

Imo000

What kindnof limitations do you have with that agreed value policy?

69gaugeman

Doesn't matter what 'x' book says. The insurance must make you whole. IE put you back into 'your' vehicle. This means that you get like for like. You go and buy the same car (or if they disagree, and they will, you tell them to go and find it and buy it for you). Unless you have an agreed value policy, which is backed up by an appraiser's valuation. Then you get that amount as a total settlement .

The fight is on the second you call them and say I want to make a claim.

spender

I agree with you 69, people think their insurer is on their side - but they're not. They are happy to see you as the "client" when you are just a fattened sheep paying their inexplicable premiums - but as soon as you are someone they might have to write a cheque to, they pretty much become opposed in interest in every possible way!

Anyway, my insurer has told me that I have to get a formal appraisal (which although a good idea, still costs $225!) and then I will have endorsement "19A" on my policy which is more or less like agreed value.

Only hitch here would be if the appraiser confirms the Red Book value...

Turbodan

Insurance in different provinces is different. In Ontario, if your car is written off, they will make you an offer and you can negotiate this. If you do not agree both parties hire an independent appraiser and if they cannot come to an agreement then they agree on an umpire (under section 28) and are bound to the findings of the umpire. no deductible on total loss. Values is based on what is currently for sale and recent sales not what red book says.
I have been hired by insurance companies and individuals many times. I do pre loss appraisals.
Especially if talking about a Porsche do not accept their first offer as it is based on something similar to red book which are way below market value.

King_James

Turbodan is totally correct. You can negotiate this and never take the first offer, more cash is always on the table.

A guy I knew who's family owned an insurance company told me, if anything serious happens and you're in a massive dispute. Sue the insurance company immediately. They will almost always settle long before court because "the insured always wins". If it goes bad don't settle.