Good list, good good list. As a result of our thread,
the BGT comes off Geico next week - I don't think I
could deal with 28 years of depreciation.
I said to them (based on previous email):
Dear Kari,
Your email seems as if it is a "form letter" but I
am responding in the hope I can get an answer. From
various automotive websites, it appears the typical
value of my 72 MGB GT is between $3,000 and $6,500.
As I document and verify the condition of my car on a
regular basis, I consider it, realistically, to be in
the middle of this range. I consulted the NADA
website, an organization that is considered a standard
for estimating automobile values both by consumers and
automotive sales professionals. I received
thefollowing information:
1972 MGB
Model: Mark III Grand Touring 2 Door Coupe
Weight: 2,190
Manufacturer's Suggested Retail Price: $3,615
Low Retail: $2,500
Average Retail: $4,050 High Retail: $6,725
Am I safe in the assumption that it is these numbers
we would be using as our basis for negotiating in a
circumstance where value was an issue? This was my
assumption when I switched from "Classic" insurance to
GEICO for this vehicle (while Classic insurance was
10% of the cost of my "normal" Geico premium, I was
willing to pay more for more liberal usage policies).
If GEICO uses another source, as a long time customer
I would like to know what that source is before there
is a situation where our sources of actual financial
value are in question/conflict. I appreciate your
response.Thanks,Ron Soave
And GEICO said:
> GEICO would pay a maximum of the Actual Cash Value
> (ACV) on the 1972 MGB.
> The Actual Cash Value (ACV) is the cost new (in
> 1972) minus depreciation (28
> years worth). We normally do not recommend Physical
> Damage Coverages on such
> an old vehicle because you would not be happy with
> the maximum payout.
> Unfortunately GEICO is bound by an Insurance Law
> known as the "Law of
> Indemnity" that is one does not have a vested
> interest in his own loss. For
> that reason, you probably should insure this vehicle
> on a Classic Car or
> Stated Value Policy.
=====
Ron Soave
'60 Bugeye
'72 BGT
'87 325iS
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