TheSamba.com :: View topic - Agreed value vs stated value vs actual cash value insurance

Thu Mar 28, 2024 11:24 am

I was wondering if someone can provide some insight for auto insurance specifically agreed value vs stated value vs actual cash value insurance in the state of CA.

Agreed Value (falls under collector car type policies with restrictions):
You and your insurance company simply come to an agreement on the value of the vehicle. In the event that the vehicle is damaged or destroyed, the insurance company pays out the agreed upon value – no more, no less. This type of insurance may not be available through the same insurer as your everyday driver insurance, so be sure to explore the types of policies your current insurer offers.

Stated Value (puts a cap on what will be paid out in the event of a total loss): This type of policy allows you to save money on premiums by accepting an insured lesser value for the vehicle. So, if the premium is too much for the $250,000 Lamborghini you just bought, you can save money on premiums by only insuring the value of the vehicle up to, say, $150,000. Stated Value policies also will often contain a clause that allows the insurance company to pay based on which ever is the lesser amount between the stated value and the actual cash value.

Actual Cash Value: A car’s actual cash value (ACV) is how much it’s worth today. This value includes the depreciation of your vehicle.

So since I drive my car regularly and cannot get an agreed value policy that leaves me with a stated vale or actual cash value policy. The stated has a cap while the ACV does not. Why would I go with a stated value policy then unless I cannot find anyone to underwrite full coverage on a 50+ year old vehicle under ACV? I mean if there is a total loss in any case you will still have to prove the value of the vehicle at the time of the loss.

I feel as if I am missing something or not understanding something.
Any Agents or Claim Adjusters or anyone with knowledge and experience who could provide some insight it would be much appreciated.

Thu Mar 28, 2024 12:08 pm

Have you considered calling your insurance agent?

There are a dozen people that chime in on these threads, and one or two of them actually have experience in the industry ;)

Thu Mar 28, 2024 1:00 pm

Many collector car insurance companies restrict miles or purpose, but some do not. Shop around and see if you can find an unrestricted policy.

Thu Mar 28, 2024 1:14 pm

I have called my agent and spoken with him and others, but as one just told me today she has to call and talk to a claims adjuster to see exactly how it worked since they don't often deal with cars over 50 years old that are daily driven so are not up to date on stated policy questions (at least she was honest).

I haven't been able to find a company that will underwrite an Agreed Value policy for a daily driver. I had an agent try to get me insured by Hagerty this morning but he came back and advised that the did not like that this was my primary vehicle and I drove too many miles per year for their risk appetite.

Thu Mar 28, 2024 1:22 pm

Call American Collectors.

Thu Mar 28, 2024 1:27 pm

i live in california. tried the collector-car route. no dice as mileage limits were too low.

i’m insured with aaa (so call auto club). two or three agents said no dice on agreed value. finally found an agent on the phone who said, sure we can.

had me take a bunch of photos for condition i researched a bunch of classifieds to establish value. pitched them a figure. she said she’d send it all to underwriting, and they’d get back to me. never heard from them, but my full coverage policy has the value i pitched clearly stated.

Thu Mar 28, 2024 1:41 pm

KTPhil wrote: Call American Collectors.

I already did, and they will not underwrite the policy.

Thu Mar 28, 2024 1:44 pm

dodger tom wrote: i live in california. tried the collector-car route. no dice as mileage limits were too low.

i’m insured with aaa (so call auto club). two or three agents said no dice on agreed value. finally found an agent on the phone who said, sure we can.

had me take a bunch of photos for condition i researched a bunch of classifieds to establish value. pitched them a figure. she said she’d send it all to underwriting, and they’d get back to me. never heard from them, but my full coverage policy has the value i pitched clearly stated.

Can you PM me the name of your agent?

Did you get an agreed value policy and if so is this your primary vehicle or is something else your primary?

Thanks

Thu Mar 28, 2024 2:03 pm

74 Thing wrote: Can you PM me the name of your agent?

Did you get an agreed value policy and if so is this your primary vehicle or is something else your primary?

Thanks
i’ve tried to contact her, but she’s no longer there.

not sure about the “title” of the policy, just that it clearly states the value i suggested to them. i suppose the real test will come if i have to make a claim.

aaa thinks the bus is my primary car cause it shows more mileage each year than my volvo, which i drove more days.

i only shared my story to suggest not taking no for the only answer. i found an agent that finally said yes. it was a random-phone-call-kind-of-thing. she was in orange county, fully 200 miles from my house.

Thu Mar 28, 2024 3:20 pm

Thanks for the info.

A lot of Brokers do not have any insurance carriers to go to in CA to see if they will underwrite a new policy since the carriers are waiting for the Ins Commissioner Office to get answers to the companies about future policies.

Thu Mar 28, 2024 8:57 pm

I have all of my classic cars with American Collectors for agreed value EXCEPT my bus. I drive it too much, camp with it, and tow a trailer occasionally. That pretty much kills classic insurance. What I did was put it on my state farm insurance with my other cars and houses/rentals, ect... and then paid a company that does appraisals to appraise the bus, which I then submitted the report to statefarm as a value "we agree on" sorta speak. I kind of gave a wink wink nudge nudge value amount to the appraiser when he was going through the bus with me, so I got the number I was looking for. This way if something did happen I wouldn't be totally screwed.

Thu Mar 28, 2024 11:46 pm

94touring wrote: I have all of my classic cars with American Collectors for agreed value EXCEPT my bus. I drive it too much, camp with it, and tow a trailer occasionally. That pretty much kills classic insurance. What I did was put it on my state farm insurance with my other cars and houses/rentals, ect... and then paid a company that does appraisals to appraise the bus, which I then submitted the report to statefarm as a value "we agree on" sorta speak. I kind of gave a wink wink nudge nudge value amount to the appraiser when he was going through the bus with me, so I got the number I was looking for. This way if something did happen I wouldn't be totally screwed.

So is that considered a stated value policy for your bus?

Fri Mar 29, 2024 5:55 am

I don't remember exactly how it's worded, but I believe so. I just know the under writer approved it and that's the value it's insured for. I had talked to statefarm about how to make sure I got paid what I have into the bus and that was the solution. The appraiser tossed an extra 5k on top what I have into it in fact.

Fri Mar 29, 2024 6:02 am

Sorry I didn’t have an agent name for you, 74 Thing. Best of luck!

Sun Mar 31, 2024 6:23 pm

I got an agreed value policy on both the trucks through Hagerty that allows me to use the vehicles as a daily drivers, keep them outside, use them as actual pickup trucks (loads to the dump or lumber yard, etc.) It's exactly what I wanted. The underwriter is Essentia Insurance Company.

I suspect that having had them appraised by a professional appraiser (Muscle Car Appraisals) and having that appraiser recommend a particular Hagerty agent (John Abrams) helped me establish the agreed values.

FWIW, the '78 double cab is insured for $90,000 (appraised at $105,000) and the '75 single cab for $30k (appraised at $76,500, as a "one of one" vehicle). If they are totaled I even get to keep the remains for parts or souvenirs. Cost is about $12001300 per year for both. Pricey I know but I am paying for peace of mind.