Date: Wed, 16 Dec 2009 13:46:03 -0500
Reply-To: mcneely4@COX.NET
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: Dave Mcneely <mcneely4@COX.NET>
Subject: Re: insurance terminology
Content-Type: text/plain; charset=UTF-8; format=flowed; delsp=no
See my embedded comments.
On Wed, Dec 16, 2009 at 12:20 PM, dylan wrote:
> Better do a little more researching.
Here are links to two of the sources I used. These two agree with the
various insurance companies I consulted.
http://www.4carinsurancequote.com
http://vehicleappraisers.com/Insurance_Information.html
If your sources differ, please provide the sources, as I am well
satisfied after consulting quite a few myself.
Bottom line is as I stated --- read the fine print, and make sure you
are getting what you think you are getting.
>
> Try Hemmings Motor News.
>
> What you have stated may be true for Gieco or similar, but there are
> companies that deal only with classics and stated value policies.
>
> I have helped a few listees over the years setup policies and recover
> more than the van sold for at the dealer, when it was totalled.
>
> Go Westy has helped show the retail value of these vans.
>
> dylan
>
>
>
> ________________________________
> From: Dave Mcneely To: vanagon@GERRY.VANAGON.COM
> Sent: Wed, December 16, 2009 11:45:23 AM
> Subject: insurance terminology
>
> After the discussion of stated value insurance, I did some
> investigation. I found:
>
> 1. Stated value insurance seems not to differ from the insurance that
> we all carry on late model cars, except there is a maximum value
> stated
> in the policy. The policy with the stated value typically has a
> provision that in case of theft or total loss, the insurance company
> will pay the lesser of (1) the stated value, (2) actual cost to
> repair,
> or (3) actual cash value at the time of the loss.
>
> So, stated value insurance seems to offer no advantage to the consumer
> (owner of a vanagon, for example).
>
> 2. Agreed value insurance is offered for collectible, classic, or
> antique cars. This is similar to stated value insurance, in that
> there
> is a particular valuation placed on the vehicle at the time the
> insurance policy is issued. The policy will then pay, in the event of
> loss, the lesser of (1) the agreed value, or (2) actual cost of
> repair.
>
> Agreed value policies typically have significant restrictions on use,
> including a miles driven per year restriction, storage restriction
> (locked storage facility, indoor storage are usual requirements),
> driven
> only to show events and so on.
>
> 3. Insurance agents often misunderstand or misrepresent the
> limitations, benefits, and advantages of the two kinds of policies.
> In
> particular, they often misconstrue, and communicate incorrectly to
> buyers, that stated value insurance will pay the amount stated in the
> policy. This appears not to be true.
>
> For most of us, it would seem that stated value insurance offers no
> valuation advantage, and agreed value insurance has serious
> limitations
> for those who use their vehicles outside the severe limitations
> allowed
> (though if the vehicle is used within the restrictions, then one
> should
> expect to receive the agreed value in the event of loss).
>
> Bottom line: Be very careful in buying insurance to be sure you are
> getting what you need and expect.
>
> I undertook this investigation because I had been told by my insurance
> agent (AAA), that I could not get a policy that would pay more than
> the
> underwriter's valuation for my camper, even with appraisals. It seems
> that I can, but with restrictions on use. I will be looking now for
> an
> agreed value policy, but with restrictions I can live with (for
> example,
> I could live with 12 or 15k miles maximum driving per year, and I
> could
> store my camper in a locked facility, but I could not live with 5K,
> and
> I could not live with driving it only to events. Hell, I haven't been
> (and don't expect to ever go) to an event yet).
>
> David McNeely
>
> David McNeely
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