Insurance Stated Value vs. Agreed

[cobra crazee]

what is the difference. And has anyone had problems with getting paid. Which insurance company to watch out for?

[patrickt]

Originally Posted by cobra crazee

what is the difference?

The difference is that under a "stated value" policy the carrier can still only pay you the "actual cash value" of your car if it seriously damaged or destroyed (as opposed to paying you what you thought you had agreed to be paid). The "stated value" is used to calculate your premium, it does not guarantee that's what you'll get when you total your Cobra.

[DAVID GAGNARD]

Originally Posted by patrickt

The difference is that under a "stated value" policy the carrier can still only pay you the "actual cash value" of your car if it seriously damaged or destroyed (as opposed to paying you what you thought you had agreed to be paid). The "stated value" is used to calculate your premium, it does not guarantee that's what you'll get when you total your Cobra.

Correct and "agreed on" value is the amount YOU want the car to be insured for....now you will not find anyone willing to insure a 50 thousand dollar car for 75 thousand....you will have to prove or show proof of the value of the car......

MY 65 Fastback policy is an "agreed on" policy, I have it insured for 25 thousand, so if it were stolen and not recovered or totaled in some way, they pay me 25 thousand for it,no questions asked....

They required very good photos (35mm) of the four corners of the car, the interior,under the hood, and in the trunk, I also added some side shots and they had no problem insuring my car for what I wanted to insure it for........

On an "agreed on vlaue" policy, your premium is based on the amount you want the car insured for, the company I use charges x number of dollars per thousand dollars of value.....for the Mustang it's still dirt cheap, for a Cobra, it's probably a lot higher.....

I use Condon & Skelly, don't know if they insure Cobra relicas though....

I'm in the insurance claims industry and we have paid a couple of claims on classic cars that had stated value or actual cash value policies...... We determined the value by getting prices of representative cars (at least 5) sold recently...they were as close as we could get to the car that was damaged and we averaged the five values to determine the value of the car in question....so far, all the owners were happy with their settlement....

With the collector car/Cobra market down right now, one could have bought a car a few years ago when prices were high and only collect the value it's worth now, when prices are down, so an "agreed on policy" would be the way to protect your investment in a car, it's more expensive, but will protect your investment in your car....

David

[Snakebit]

Just insured my Cobra with Condon & Skelly for $70,000 agreed value. $419 per year.

[patrickt]

Remember CC, it's more important that you have proper levels of liability coverage, including a sizable umbrella policy. You can absorb having your Cobra disappear without having it insured, but you can't do that with a bad accident that's your fault (unless you are extremely well off). Make sure the umbrella carrier knows of your Cobra policy and that it meets their threshold requirements. You don't want any surprises if you have to make a claim with them.