Stated value -vs- agreed value

[Rich]

Allstate has done a 180 and said they would insure the Cobra (after 4 years of saying no). Their price and coverage is better than Parish-Heacock and it would be nice to have all the cars on one policy. Plus, it would feel really good to stick it to P-H for doubling my premium last year for no reason.

When I asked about the "agreed" value of the car, the Allstate girl said they would match the "stated" value of the the P-H policy. When I asked if "stated" value is the same as "agreed" value, she said she was sure it's the same thing. Is it? She also said they would like to see some pictures and then they'd take my word for the value of the car.

Is it me, or does this sound too easy?

[Ron61]

Rich,

I am not an insurance expert, but when I had my cobras insured I talked to the company and the agreed value with my commpny is what they will pay if the car is stolen or totaled, regardless of how old it is. The stated value would depreciate over the years as to what they would pay if something happened to the cars. So I made sure that I had an agreed value of the car on both. However now that things have gotten so much higher, I couldn't replace either of them with what I have for an agreed value. But if I had taken the stated value, I doubt if I couod buy a set of wheels with what they would have deprreciated to by now. Some of the insurance guys here can tell you for sure. Talk to Klayfish for one.

Ron

[Bob Parmenter]

What Ron said!!

If you think the relationship is of value, and cost effective, just raise the bar to a liveable level, and then make sure you revise accordingly on an annual basis. Insurance companies ALWAYS work to their advantage first, as a consumer we just need to try our best to keep the field as level as possible. (not an endorsement of fraud) If a moment of truth comes you find out that what you call a "policy" is really a contract with very specific terms.

[Midwest Classic]

Rich,

Less is not necessarity better.

Stated amount is, in my opinion, the biggest rip in the insurance industry. I have been an insurance agent for 27 years and here is what happens. You insure your car under stated amount for $50,000 and then have a total loss. There is some verbage in the policy that goes something like this: "In the event of a total loss we will pay the lessor of the amount stated on the policy or the actual cash value."

What this boils down to is they will never pay over the $50,000 stated but if they feel the ACV is less than $50,000 that is what they will pay. Now that you have paid the premiums for the $50,000 good luck trying to get it. YOU WANT AGREED!!!! This takes the guess work out of things.

I know I would not feel comfortable insuring my cars with someone that "thinks" that stated and agreed are the same. Ask them to put it in writing what they will pay for a total loss. Tell them to write something simple such as "In the event of a totall loss we will pay you $50,000 for your car" I doubt they will be willing to do this.

We write Cobras all the time and would be glad to do it RIGHT for you, give me a call or email.

Robbin Terry
Midwest Classic Insurance
1-888-271-4000
www.midwestclassicins.com