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My insurance company nearly forced me to over-insure my truck. Why?

Discussion in 'The Hokey Ass Message Board' started by Buzznut, Jul 30, 2013.

  1. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    I ended up getting classic car insurance through AAA. It's something they obviously broker, but it was hassle free and fairly inexpensive at $224 for the year. The odd thing was that they told me my truck could be insured for up to $58,000 and advised that I insure it for at least $25,000. On it's BEST day it may be worth $15,000, so I asked them if I could insure it for that and they agreed, telling me that was the MINIMUM.

    Mechanicals are 95% done and new or rebuilt, body and paint are undone and interior is undone. Does the value they stated make any sense?
     
  2. Is it $224 a year for 15k 25k & 58k ?
     
  3. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    $224 for 15K. 25k would have been around $290 and 58K would have been around $370.
     
  4. 29AVEE8
    Joined: Jun 28, 2008
    Posts: 1,384

    29AVEE8
    Member

    Is this an Agreed Value policy?
     

  5. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    Yes, 15K replacement no matter what. Includes flood, fire, earthquake, theft, accident, etc...
     
  6. If you insure it for more than it is worth, will they pay you more than it is worth if totaled? It is a scam to get you to pay more than you have to. I bet there is fine print!
     
  7. If it's an agreed value policy and both you and the insurance agree that its worth 58K then that's what you get if its totaled...At least that's the way my policy with another company works.
     
  8. bomcadillac
    Joined: Jul 14, 2013
    Posts: 27

    bomcadillac
    Member
    from Las Vegas

    I used hagerty to insure my VW bug for $5000. It was $130 a year and included full coverage and roadside assistance. You are limited on miles driven but I had 7 years and they never checked my mileage. I'll be switching it over to my 54


    Posted using the Full Custom H.A.M.B. App!
     
  9. rottenleonard
    Joined: Nov 7, 2008
    Posts: 1,993

    rottenleonard
    Member

    Always wondered about that, seems fishy.

    Kind of like being worth more dead than alive.
     
  10. i just signed with AAA.
    once the broker signs you it still goes to underwriting for review. after seeing the pictures, THEY determine the MAX you can insure for.
    I asked for $xx,xxx in coverage, they came back with a max value that was 5k less.
    its still extremely fair valuation and worth more than i have in it.
    it is an agreed value policy which pays the amount agreed upon, as opposed to a stated value policy in which you can insure for a max value, but in event of loss, THEY determine MARKET value.

    i've met more than one AAA insurance agent who didnt have all his ducks in a row.
     
    Last edited: Jul 30, 2013
  11. For one thing......you may have your amount invested in the vehicle, but it probably would cost more if they have to repair it. They probably could not shop around and get bargain prices on parts as you may have done. You do need to check what they would pay in event of a total loss. The companies all make their own rules.
     
  12. oldolds
    Joined: Oct 18, 2010
    Posts: 3,407

    oldolds
    Member

    They are in the business to make money. Bigger policy the more money the agent makes. You can bet if you paid for $58k and your truck was totaled you would only get what an appraiser said it was worth $15-$20k They would say it was your fault for over insuring it. It also could happen that when the paper work got back to the home office they might tell you it wasn't worth $50k and make you re-do the policy.
     
  13. bomcadillac
    Joined: Jul 14, 2013
    Posts: 27

    bomcadillac
    Member
    from Las Vegas

    I had to send pics and fill out a form of upgrades, etc before its approved. I rarely drove it so worked well for me



    Posted using the Full Custom H.A.M.B. App!
     
  14. Jalopy Joker
    Joined: Sep 3, 2006
    Posts: 31,179

    Jalopy Joker
    Member

    read all of the fine print, like when can you drive it? to the parts house, car cruise or just car shows? shop around at least to compare, even if you are pretty set on AAA. sounds like it would be good to over insure it until you have done everything and it is finished, then set insured value again. if you insure for current value and upgrade it you will likely loose that investment. lots of info in threads on insurance companies here.
     
  15. Vandy
    Joined: Nov 15, 2009
    Posts: 368

    Vandy
    Member
    from L.A. Ca

    I have 4 classic cars that I wanted to buy their classic insurance for, all in running and driving condition. After taking pics and processing the paperwork, they came back and refused to insure all of them, stating that they needed paint & they would only insure after they were painted. I had 4 other cars & trucks & the house already insured with them.
     
  16. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    They were going off NADA values, so they said. I honestly don't see a restored 1956 Chevy pickup ever being worth anything close to 58K...ever. He even asked specifics about whether or not it was a Cameo, original V8, big back window, stepside, custom cab, etc... The number he threw at me wasn't arbitrary, it was based on a valuation that they have established for this particular truck. My thought was that they either entered information from NADA incorrectly or that NADA is wrong. Either way the valuation seems way off to me.
     
  17. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    I just looked at NADA and it states that high retail for these trucks is $50k. Even fully restored I couldn't see one fetching that price at Mecum or Barret Jackson, but who knows...
     
  18. 1959apache
    Joined: Nov 22, 2009
    Posts: 2,635

    1959apache
    Member

    I agree, I don't think that is accurate at all. That book is pretty useless for a lot of reasons, but this just highlights one of them.

    The underwriter (more than likely not a car guy/gal and actually has no clue what stuff is worth) just looks over it and tries to get the lowest buck out of you possible. Don't be alarmed if they come back and say they will only insure it for 10k.

    State farm came back with mine after I wanted to insure the C10 for 10k (which is a reasonable price out here for an original truck that has been generally taken care of). They came back and denied it because there was an oxidized scratch on the bumper and the fact that the wood bed had black paint peeling on it. They would only insure it for $3,000... Keep in mind the same people insure my house and two other OT cars as well. They lost my business.

    I went with Chrome and he didn't even question it, insured it that minute and I didn't look back
     
  19. Whenever you have a claim, your insurance company will become your adversary. What you think you have and what you get are two separate things.
     
  20. Mr48chev
    Joined: Dec 28, 2007
    Posts: 33,861

    Mr48chev
    ALLIANCE MEMBER


    My thoughts exactly. Few of us who view hotrods and customs as a hobby add in all of the hours when we place a value on our rigs or all the hours and over the counter prices for all of the parts it might need to repair it back to the same condition.
    If it goes to a quality shop for repairs and they put it back up to the same condition that you had it in (implying that it was in top condition) what would it cost? A truck that you can't see more than 15K in at the moment may full and well cost 25 K to have someone build a duplicate.
     
  21. "They" only determine market value if you let them. It is your right to accept or negotiate. You just need to know how to fight it.
     
  22. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    One of the reasons I used AAA is because I am already with them and they have been very easy to deal with and very fair. I also have the Premiere Roadside service and like having the ability to use them for DMV transactions. Also, Hagerty was going to make me wait 3 to 5 days and needed proof of insurance from AAA and was going to be about $50 more and seemed like they had more hoops and restrictions for classic insurance approval.
     
  23. Swifster
    Joined: Dec 16, 2006
    Posts: 1,455

    Swifster
    Member

    1) Make sure your policy is an Agreed Value policy or if it's a Stated Value policy. There is a big difference in how claims are paid. Sales agents don't know the policies they sell, but they should. If they don't answer your question, call the claims department and find out. You want Agreed Value (unless it's a daily driver).

    2) Everyone is an expert on what their car/truck is worth *sarcasm*. Spent the $200 or so for a written appraisal. You be surprised what an old truck is worth. Many cars/trucks are under insured.

    3) As things on the truck are completed, raise the insured value.

    Hagerty and Grundy have no mileage limitations. The requirements for most insurance companies that sell Agreed Value policies are... Secure Storage, such as a garage, storage unit, etc. - The vehicle is not a daily driver and not driven to work. - You need to be 25-26 years old (10 years of driving experience).
     
  24. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    This one is tough. First off, if I can't drive it for pleasure whenever I want, what is the point? Secondly, I work at a service center and tire shop where there are lifts and tools, etc. that I don't have at home. Each time I've driven it there it's because I needed to do something to it. Wouldn't that be the same as me taking it to the muffler shop or transmission shop?
     
  25. i asked my agent that exact question. the answer is yes.
     
  26. 911 steve
    Joined: Nov 29, 2012
    Posts: 678

    911 steve
    Member
    from nebraska

    I just re-newed this week with Grundy. 40 Ford sedan 305 sbc, new paint lots of toys - agreed value of $32,500 for $213.
     
  27. Bruce Lancaster
    Joined: Oct 9, 2001
    Posts: 21,681

    Bruce Lancaster
    Member Emeritus

    What about liability coverage?? The value of the vehicle is small change if you hurt someone with a lawyer. Property coverage is never enough to make anyone happy if there's a write-off of a nice ride, but the property loss is survivable for most people.
     
  28. Buzznut
    Joined: May 9, 2008
    Posts: 2,349

    Buzznut
    Member

    The liability coverage has to be at least the same as your primary vehicle...I have good coverage on my primary.
     
  29. Ross6860
    Joined: Jul 27, 2013
    Posts: 9

    Ross6860
    Member

    Think about an umbrella policy. A million or two..or more.

    I'm older, my house and all my vehicles are paid in full. I have a decent 401k, firearms collection and guitar/amp collection, etc.

    All I need is to get in any kind of accident with serious (or not so serious) injury and I end up in court, flayed, drawn, and quartered. They get my house, my cars...You get the picture.

    They will require minimum liability on your vehicles and boat if you have one, but it may be well worth looking into. Just sayin'
     

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