Insurance - Type - Apprasial

vettestr · #1 (**permalink**) 12-06-2003, 07:07 AM

I need some help or to know the ins/outs of Insurance and types of policys. Do we have an Agent or Lawyer with the scoop? What Policy type do I need to make sure I have ? Does a written apprasial need to be updated if you have an agreeed value policy?
I have a policy that is for an agreed value in case of loss. I think that means if total loss the policy pays that amount and is not depreciated from date policy was issued ??. Is there a difference between stated and agreed value? Is there some hidden clause I need to look out for being used in the market? Does a written apprasial need to be updated or is a value fixed and I am paying Premiums for that Agreed amount I am covered? Please give me and others the NEED TO KNOW stuff about insurance and what to watch out for. I do have un and under insured coverage that I feel is a must especially since I live in a US border state and less than an hour from Mexico.

REDSC400 · #2 (**permalink**) 12-06-2003, 07:55 AM

Hi Jeff:
I think that your questions are very valid. I would contact your current insurance agent and ask them to explain their coverage as it regards to your questions. That way you have a baseline for your current cars, etd. Pretty much you need to speak to someone who can address insurance questions that relate to Arizona coverage. (It does slightly vary state by state I hear.).

From what I have learned, you want your Cobra coverage rates to equal those of your primary auto and liability, and medical insurance policy on your other cars. Not all, but many of us use a secondary agent to write our Cobra insurance.

A fellow who is very knowledgable is Mike Smith of Northeast Classic Auto Insurance. You may want to pick his brain. He is a real nice guy and can explain or clarify some points for you. He is at 800-866-6440.

Hope this helps..?

vettestr · #3 (**permalink**) 12-06-2003, 08:21 AM

Art,
Thanks, will call Monday. I have asked my agent but am looking for input from Trades People or others that do not have a sale/commision involved. Also looking for the experiences and things to be aware of from fellow Cobra people who may work in the field ETC... The wealth of info on this site is staggering and the answers benifit us all in general.

Bill Wells · #4 (**permalink**) 12-06-2003, 10:48 AM

yes, there is a difference in stated value and agreed value.

agreed value is just that, in the event of a catostrophic total loss, the agreed value is the amount they pay, bingo. no games.

stated value is inferred as the max amount paid, generally considered 'up to' that amount stated on the policy . the fine print legalese will allow the carrier to 'pencil' depreciation etc or perhaps find some wiggle room to NOT pay the total amount as buried somewhere in your policy . hence, total value is usually cheaper than agreed value on cost per thousand bucks insured .

re appraisal, if the company does not ask for updates, then one is not needed. however , if the market is going up in value and you think your car should now have an increase in insured value then contact the carrier. they might increase it without an appraisal , they might ask for an appraisal. they might say 'hey, we won't go any higher than $xyz value'.

replicas generally wont be expected to see increased values of major consequence like the originals have done as they whipsawed up and down in value and going back up now. other collector cars are seeing increased values . if increases can be supported vs current insured values, then see if you can get an increase. sometimes increases are warranted based on significant changes to the car, ie, a restoration, new top, new trim or similar other additions, those are easier usually to get a carrier to agree to.

i asked for an increase on my 65 mustang convertible and got it based on the carrier acknowledging the market had been going up, but even then he said no more than xyz in value. his max was what i wanted to go to anyway. i have had friends try to get an increase with their replica current carrier to no avail , yet when they changed agencies the new carrier would accept a higher value. so, each case is most likely handled on a one on one basis.

i suggest to friends getting insurance for the first time to get agreed value only and insure it for as much as they will allow, as the incremental cost is not that much...easier to do on the front end vs later.

that being said, call your carrier to get an understanding to your questions from them...and keep an eye on the market value to see if later increases are warranted. you can always ask, they can say yes or no! better more coverage than too little should you have a total loss. bill.