Insurance value

[Buick35]

I'm insured through Hagerty's and they just e-mailed me that my 35 40 series Buick is worth more than I think.They want me to insure it for $15000 instead of $10000. I just think they want to raise my rate while making me feel good about my car.

[Rivguy]

Did you have an appraisal to determine the value of your car before insuring it? What info are they basing the increase on? I've never had an older car that was worth very much so I haven't worried too much. I know about agreed upon value policies. I nave carried liability only insurance in the past, but if I move up to more valuable cars I'll have to find other alternatives.

[erichill]

How much more was the insurance for the additional $5k  Seems to me the $10K wouldn't  cover much. I am not familiar with your car but with cost of repairs at $10K it wouldn't take much for them to consider the car totaled if in am accident.

 

[1932 plymouth pb sedan]

Don't waste your time with an appraiser, do your own research to find what a similar car in the same condition is selling for (not what people are asking, but what the selling prices are). Insure your vehicle value on replacement cost.

[TAKerry]

It may not be your insurer looking to bump up their bottom line as much as due diligence. I am not familiar with your car but it sounds like it may be underinsured. Looking at what is posted in the not mine for sale $10k doesnt get much these days. 

[alsancle]

If you’re comfortable with the insured value then leave it alone. Typically cars are never insured for 100% retail value, just enough so that in a total loss you’re not on the floor sobbing.

[John_S_in_Penna]

16 hours ago, Buick35 said:

...Hagerty's... They want me to insure it for $15000 instead of $10000. 

I've received that type of notice before.  They don't do it

every year, but only occasionally.  You're under no obligation.

 

1 hour ago, alsancle said:

If you’re comfortable with the insured value then leave it alone. 

The advice above is good.  I note, however, that there are

no "retail" and "wholesale" values in the old car hobby.

There is no manufacturer of old cars, selling through distributors,

through which the cars eventually get to their owners.  Anyone can

buy and sell from anyone;  there are realistic prices and 

unrealistic prices, but not wholesale and retail.

[Guest]

 As cars are usually totaled @80% of the value, if you have an accident, $8000 doesn't allow much for repairs and the car is totaled.

 I think that they would not want to bother reselling the car for salvage so they want to raise the ensured value.

 

 Another thought might be the fact that real-estate must be insured at least 80% of it's value or the insurance will only pay 80% of the cost of repairs This is because owners want to pay less so they under value their home, knowing that a total loss is rare in real-estate.  (or cars)

 

 According to a few value guides, your car is worth about $13000

[64avanti]

I take a different approach to insurance value. Both my completely restored 51 Ford F1 and my soon to be started on the restoration 64 Studebaker Avanti are insured through Hagerty at an agreed replacement value that some might consider quite high.

 

Why? With $10K in agreed value, that's the limit of your coverage. If repairs are over that, that's all you get. I want to be sure that I can rebuild either vehicle back to where it was before the accident or replace it with the same quality level that I spent thousands of hours to achieve.

 

I had to document the agreed value of the Ford with plenty of pictures, while the Studebaker, being non-operative, only required a few photos.

[64avanti]

I have a great insurance agent who explained the byzantine world of homeowners, auto, and business insurance to me. 

 

Bottom line is for most insurance, being underinsured can be very costly. Read your policy or talk to your agent about it. You may save a few dollars now, but you will more than pay that back in the event of a major loss.

 

Keeping this antique auto related, just be sure that you are comfortable with the agreed value, taking into account the cost of repairs or replacement.

[SC38dls]

The reason to listen to your insurance company then make a rational decision based on what you can afford, in my opinion- if that’s worth anything. 
I had my 38 insured for a guaranteed 15,000 through Hagerty. I got in a fender bender that destroyed the grill beyond repair, dented the left front fender, crumpled the right front fender, and broke both fog lights. The INDEPENDENT estimator Hagerty used assessed the damages at over $32,000 !  He had new engine side panels, realignment of hood, new chrome belt lines on the hood, bumper guards and a $20,000 parts car!😳. Hell, the parts car was worth more than my original drivable insured car. When I pointed this out to my agent and said I would settle for 3/4 of the estimate with out the parts car instead of having it totaled for the $15000 guarantee Hagerty was very happy. I spent approximately $2800 on the total repairs of the $9000+ settlement amount. I had to do the work but the $2800 included the tools I needed to do it plus I had ( and I think a lot of forum members did too) fun doing it. 
Hagerty was good, recently I received the same type of notice from them and jumped at the chance to increase my value by $10,000 for a cost of less than $20 a year. After knowing how easily it is to have your car considered total for a very minor accident I will go for a higher value every time they offer it to me. 
dave s 

pics below to show before, during and after repairs. 
 

[60FlatTop]

The cost difference is not much and increasing on the advice of the insuring company would certainly be in my notes for leverage if a dispute arose.

[Paul Dobbin]

What would you pay for your car if you were a buyer?    What would you take for your car if you wanted to sell it today?

A good driveable car needing a total restoration is worth more than a parts car, but not by the cost of that restoration. to #1.

Be reasonable with yourself and insure it for what you could reasonably sell it for, as is.   Hagerty doesn't need your $20,00,

unless  you have loss and you think you car suddenly has great value.  Remember repair is almost never cheap!

A 30 year insurance agent.

  

[Gunsmoke]

Insurers do not want unhappy clients. This topic was the subject of a 1 hour discussion at a car club event 3/4 years ago as a rep from the local Hagerty Silver Wheels program made a presentation. They were wanting all members with insured cars to be aware of some recent history. As an example I recall they made reference to a garage roof collapse on 2 antique cars, the owner had insured them for $10K each based on an appraisal he got, and photos which had been sent to the insurer. After the roof collapse, the insurer concluded they were both a write-off, the insurer concluding they could not get them restored for less than $20K each. The owner wanted to keep one of the cars which created a dilemma for the insurer. Ordinarily they payout the $10K coverage (less any deductible)and possess the car to sell as salvage. Of course the owner wanted to keep the damaged car and also get the $10K insurance. For the second car he was satisfied to let them take the car and pay him the 10K. The insurance person explained that they were OK with the owner assessing the car value, but not with "after the fact" "deals" such as paying full coverage and allowing owner to keep car. 

 

This example demonstrates the need for clear thinking of what the owner wants his car insured for. If it is a car he really loves and values and cannot imagine parting with, then insure it accordingly, i.e. at potential cost of full restoration. If just a car, worth 12K and lots of them around, insure for replacement value of 12K. If a run of the mill car worth 10K and not too concerned about replacement at all, insure for $10K. The key is to decide what you have, what it is worth to you, and insure accordingly. From my perspective, Hagerty's does not want unhappy customers, and encourages clients to over-insure if in doubt as premium extra is usually small. Finally, over time values can change significantly, up or down, so keep an eye on your policy annually and keep insured amount up to date.