- Joined
- Jan 20, 2022
- Messages
- 1,515
- Reaction score
- 2,464
- Location
- Homer Glen, Il
- My Car
- 1971 Mustang Mach 1 351c M-code FMX trans and 9 inch rear end
I currently insure my cars with All State with the full expectation that it will not be pretty if I ever have to claim a total loss. I am going this route only because two of my sons are still younger than Hagerty and Grundy told me they would cover, and everyone drives my cars. My daughter-in-law jokingly said that even though she is married to my son and is expecting our first grandchild, she really knew she was family when she got to drive one of Dad's cars, haha.
The problem I expect to have, if I ever have to make a total loss claim, is based on the fact that All State and State Farm and the rest of the other mainstream companies have agreed value policies, while Hagerty and Grundy offer guaranteed value policies.
Very important disclaimer, I am not an attorney , and I have never even played one on TV, LOL.
My attorney explained it to me like this, a guaranteed value determines the pay out in the event of a total loss or theft, while agreed value determines the premium pricing, not necessarily the payout in the event of a total loss, My All State agent and my attorney both advised to keep all receipts and have plenty of pictures of the restoration process, and have current (within five years) certified appraisals, just in case I have to go to war, haha.
I experienced this second hand about eleven years ago, my brother had his 64 Impala SS stolen that was insured by State Farm for an agreed value of $50,000. State Farm's original offer was $16,000 because they stated they could replace it for that. He told them to replace it then, and of course they came back with that is not their responsibility. After a lot of back and forth and threats to involve an attorney, he ended up getting $34,000 after review of multiple comps and all of his restoration receipts. Although this was eleven years ago, I have been told by my agent (my friend since high school, so probably more open than most would be) the process hasn't changed.
I insure the cars through All State along with my home, business, personal articles etc., and hope I never have to file a total loss for one of the agreed value cars, fully expecting that it will not be awesome. The up-side is I have good coverage and minimized exposure in the event of an accident and it allows the under 25 "kids" to be able to enjoy the cars, but the down-side is the value is not guaranteed. I feel that these policies will serve my needs for the next three years, but when the "the baby" (he doesn't love it when I call him that) turns 25, I plan to switch the classic cars to one of the guaranteed value insurance companies.
The problem I expect to have, if I ever have to make a total loss claim, is based on the fact that All State and State Farm and the rest of the other mainstream companies have agreed value policies, while Hagerty and Grundy offer guaranteed value policies.
Very important disclaimer, I am not an attorney , and I have never even played one on TV, LOL.
My attorney explained it to me like this, a guaranteed value determines the pay out in the event of a total loss or theft, while agreed value determines the premium pricing, not necessarily the payout in the event of a total loss, My All State agent and my attorney both advised to keep all receipts and have plenty of pictures of the restoration process, and have current (within five years) certified appraisals, just in case I have to go to war, haha.
I experienced this second hand about eleven years ago, my brother had his 64 Impala SS stolen that was insured by State Farm for an agreed value of $50,000. State Farm's original offer was $16,000 because they stated they could replace it for that. He told them to replace it then, and of course they came back with that is not their responsibility. After a lot of back and forth and threats to involve an attorney, he ended up getting $34,000 after review of multiple comps and all of his restoration receipts. Although this was eleven years ago, I have been told by my agent (my friend since high school, so probably more open than most would be) the process hasn't changed.
I insure the cars through All State along with my home, business, personal articles etc., and hope I never have to file a total loss for one of the agreed value cars, fully expecting that it will not be awesome. The up-side is I have good coverage and minimized exposure in the event of an accident and it allows the under 25 "kids" to be able to enjoy the cars, but the down-side is the value is not guaranteed. I feel that these policies will serve my needs for the next three years, but when the "the baby" (he doesn't love it when I call him that) turns 25, I plan to switch the classic cars to one of the guaranteed value insurance companies.
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