Regarding Auto Insurance:
The following is a brief summary of my experience.
In the process of insuring my Healey, I went to my insurance agency
(Liberty Mutual) and talked to one of the managers. (I don't want to
get in an accident, and THEN have them tell me the car is 25+ years
old and thus worth $50.) The manager was a former XK-140 owner so
I felt comfortable talking with him.
According to Massachusetts law: "Antique" insurance is for cars 25
years or older, w/ mileage limit, and driving limited to shows/etc.
There are 3 types of every day coverage (at least in Massachusetts):
1)Actual Cash Value (ACV) = your typical insurance policy; 2) "Stated
Amount"; 3)and something like appraised(?) coverage where premiums are
proportional to appraised value. The manager suggested Stated Amount
as it was a better value.
I asked: What is book value on a 1955 Austin Healey?
Insurance Ans: The car is too old and not listed in the book.
Q: Then, if there is a loss, how is value assessed?
A: At time of loss our agents will pay "market value" as derived from
HEMMINGS, our assessors, (..the moon being full, and God only knows??)
You should get an appraisal + pictures.
Q: If I get it appraised + pictures, and the car is IMMEDIATELY "totaled";
Would I get the Appraised value?????
A: The appraisal would be taken into account, and subject to depreciation.
NOTE: In getting a car appraised, there are appraisors and "certified"
appraisors. Get appraisals done by one who is "certified" by your
insurance agent.
Last year, being uncomfortable with above answers, I again asked like
questions. Then I learned that Liberty Mutual's "Stated Amount" is defined
and coverage limited to the LEAST of 3 conditions - one of which is ACV!
Thus "Stated Amount" is, by their definition, no better than ACV policy.
I made a trip to the Mass. State Division of Insurance looking for more
answers. I explained my situation, and explained Liberty Mutual's
"Stated Amount" policy. They were sympathetic but not much help.
I also called J.C.Taylor and started to ask similiar questions. They were
very general in their answers and thus I assumed their coverage would be
similar to my current coverage. I was too fustrated to request specifics.
I have since switched back to regular ACV policy. To date I have no idea
what I am buying via insurance premiums. There does not seem to be any way
the insurance company will state any value of my car. Apparently, only at
actual time of a loss will they determine value.
I have a copy of very specific questions which I requested written response
from my insurance company. If loss, I intend to show that the insurance
company collected premiums and has no idea of the true value of my car even
though I provide certified appraisals.
I can E-mail questions to anyone interested in asking them of their insurance
agent.
With the value of our cars APPRECIATING rather than depreciating, I'd
be very interested to learn how other insurance companies would respond.
Duane Walzer WALZER@ENP.PRIME.COM (508) 879-2960 x3482
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