Larry,
I have no experience with these companies, however I do have
some experience with insurance policies and would offer some
advise from a non expert.
There are three basic policy types, with varying conditions
within each.
ACV
One is the normal insurance you are probably familiar with,
and generally values your car as "ACV", or "Actual Cash
Value". This value is easy to determine for newer cars as
their Kelly Car Blue Book value. You can generally get the
replacement value (not wholesale) from a good insurer. The
problem is that cars like ours are not listed, as the Kelly
Car listings stop after 7 years. In that case, the adjuster
will find 10 recent sales of what he considers to be
equivalent. He will not consider "asking" prices, and
"condition" is always arguable. If the car is damaged over
75% of this value (after he negotiates down your repair costs
to a bondo job - typical even for new cars) it will be
"totaled", and you will receive the "Actual Cash Value". You
can usually buy the wreck for 10 to 25% of that figure. More
likely with a low demand car. Similar process for a loss, but
without the 75% issue.
STATED VALUE
Most think this is a good deal. Beware. You "State" the
value of your car, and that is what they base your costs on.
If you lo-ball the number, to save on rates, then any claim
must be under 75% of that number, or you pay the difference or
get totaled at a low value. Not a good idea.
If you "overstate" your value, it still goes through the same
process as "ACV" (last 10 sales, or close to) and you only get
that amount, although you have paid for more. Bad business
decision.
AGREED VALUE
Used a lot on valuable cars. The car MUST be appraised by an
accepted appraiser, at your cost. You are responsible for
assuring that this appraisal is updated to be "current" over
time. In the event of an accident, or loss, the adjuster goes
through the same "10 recent sales" routine, and that's what
they will offer - unless your paid for appraisal is LESS.
Then you get less. So who wins that one? The appraisal only
limits the MAXIMUM the insurer will pay!!!
HISTORICAL VEHICLES
This is probably what you are looking at, from sources like
Hemmings. These are very good policies for actual Historic
Vehicles (same appraisal rules will apply - at time of
claim). Nobody takes YOUR word for it, even if you've paid
that rate. Having the proof of value in hand, for a car that
is NOT, is your responsibility. The only issue you must
confront are whether the restrictions on use are acceptable.
They usually include absolute limits on annual miles driven,
and restrictions on vehicle use to those things you need to do
to maintain and display your car. You can get away with
travel to and from a restorer or shop, and travel to shows.
Although many stretch the "travel to restorers and garages" to
include significant "condition evaluation" travel, there is
the chance that this will be disputed and invalidate the
policy.
Bottom line.
Every policy is limiting in some way. Every policy is written
to the insurers advantage. Any policy should fit the car and
use, or you are only fooling yourself. Adjusters have a much
broader definition of "like vehicles" than you do.
Please consult other experts actually in the insurance field.
I was fortunate to know both an insurance expert who is into
collectibles, as well as an actual insurance appraiser for
major insurance company. These are their conclusions, not my
own. I'll furnish some contact for individuals.
Steve
--
Steve Laifman < Find out what is most >
B9472289 < important in your life >
< and don't let it get away!>
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