ca993twin

I have State Farm Stated Value insurance on Rufus, and when I wanted to raise the Stated Value (to $149,600), they required an appraisal. In searching around I found lots of negative comments on State Farm's Stated Value policy. I looked carefully at policy, and didn't spot any red flags. My agent told me that State Farm changed their Stated Value policy in 2012, and now will replace a total loss at the Stated Value, no ifs, ands, or buts. This new policy is a bit over $600 for the year, and includes some mileage and use restrictions.
When I asked the nay-sayers about the change that State Farm invoked in 2012, none were aware of that change. I think that old information is at the root of the negativity. The old policy stated that a total loss would be replaced at Actual Cash Value (as opposed to Replacement Value), and therefore would have required State Farm to determine the ACV. That sucks. That is NOT the way the new (since 2012) policy reads.
Do your own research, and let me know what you find.

pirahna

Is this considered collector car insurance and as such having lots of restrictions? I would love to only pay $600/year but I like to drive my car to work or anywhere else I please without having to worry if I am covered or not. I think I am paying around $1100/year with Farmers with a standard policy but with fairly high limits.

x50type

FYI - This from Hagerty's site.

What are your usage restrictions/guidelines?

Simply put, we want you to enjoy your classic vehicle. While there are some restrictions in the policy, you’re covered for pleasure use, whether it's a drive on a gorgeous summer day, a trip to the ice cream shop, attending club events or going to shows. If you have specific questions about usage, especially if you own a newer vehicle (generally 1990 and newer), we're happy to discuss them with you.

Be aware that if you have a claim and you were not going to the ice cream shop, you'll get a load of crap from them.

Ask me how i know?

Ed Hughes

Allstate did the acv wording on my stated value too, so I switched. Hagerty wasn't competitive. I went with Heacock and have 6k miles/yr.

993Mpls

Ed, are there any restrictions on your 6k miles? Are commuting miles valid?

Ed Hughes

I said it was only for pleasure, didn't pay any attn to commuting restrictions as I won't need to do that.

Giantviper

I use Leland West and have been happy with their coverage.

NYC993

When I called my insurance company (progressive) the guy openly told me that "Stated Value" means little and will only taken into consideration by an adjuster. The agent (who seemed to be a car enthusiast himself) recommended to go with collectible insurance provided by another company, for which I didn't qualify either.

OP, when you say you didn't see red flags are you a lawyer (I'm not being sarcastic). Did it say "We will pay the Stated Value (defined as $149,600) if your car is declared Totaled due to any reason" Then my question would be if your car is not totaled, and part are not available, what happens in that case?

ca993twin

I'm NOT a lawyer, but the language is actually pretty clear.
"If loss is to your car, item 1.b.(1) is changed to read:
You and we agree that the actual cash value of your car is the vehicle value shown on the Declarations Page unless:
1. your car has been damaged;
2. parts or equipment have been removed from your car, or
3. your car's condition has changed due to abuse or neglect
after the vehicle value shown on the Declarations Page was agreed to and prior to the loss."

As far as your last question... I think this is the same as any other insurance policy when some part is damaged and replacements parts are not available. And frankly, I don't know how that case is handled by any insurance carrier.

mpruden

This insurance business confuses the heck out of me.

I've recently switched to Grundy from State Farm last month over this stated value vs. agreed value mess. My State Farm agent very clearly said that their Stated Value policy was an upper bound. That is, they would determine the car's value in the event of a total loss and pay that amount up to the stated value.

If my car is totaled or stolen, I won't be in the mood to educate and negotiate the world of appreciating mid-90s sports cars to someone used to insuring F-150s. So I switched and my agent seemed to agree with my logic.

Now I'm wondering if my State Farm agent was using outdated information?

NYC993

Maybe it's just me, but I would not rely on this language, unless an attorney could convince me otherwise. Also this is not clear without reading the entire contract. There can easily be a clause somewhere that changes everything. And even then the attorney might not pick all the things. The insurance co has an army of attorneys drafting these agreements while thinking "if this car is damaged or stolen how can we leave enough ambiguity to pay as little as possible"

That's kind a weird sentence "if loss to your car occurs...unless your car has been damaged" So if you get into accident, now your car is damaged, does it mean this paragraph doesn't apply anymore? Are the Vehicle Value and the Cash Value defined terms? I'm also not sure how Cash Value is used in the agreement. Is "loss to your car" a defined term? I'm not a lawyer but I read enough agreements for much more complicated things and while there no "red" flags in this paragraph it's too ambiguous.

As far as my point about aftermarket parts, here is my train of thought. Let's say they agree to 149k value. Now they would rather have your car repaired vs. totaled as long as the repairs are under 149k. Repair doesn't mean bring to the the condition your is in now, but rather to a condition of a 18 year old car. Hopefully, to an average condition of a Porsche 993.

2Many Cars

In my experience State Farm = Run Away, fast. Allstate too.

x50type

I have flood insurance with state farm; agent wanted to give me a quote for my DD [a Jaguar XJ8]. It turned out to be $275 more than i am paying with GEICO for same coverage. When i pointed this out, agent knocked $190 off............................! I was not impressed.
[Anyway - how do they work out the premium? -- what the market will bear?]
I asked for a quote on 2 Porsches as well - "We'll have to get back to you."

nine9six

I agree with this statement in it's entirety! Anybody read Consumers Report mag? Farmers Ins was also rated the lowest out of the major brands.

Unfortunately, I know why as first hand experience, due to bump to the back of my Toy truck by a Farmers insured driver. My insurance at the time was Farmers as well, and oh what a nightmare of purposeful manipulation by Farmers to try to get me to have my truck repaired by a Ford dealer, instead of at a Toyota/Lexus shop.

I dropped them immediately afterwards; and my Farmers agent, who is a longtime friend, sheepishly agreed that Farmers is not the same company it used to be. This was coming from a Farmers Insurance Agent!

scosurf

I have geico and am probable underinsured. I called haggle ritzy for a quot on agreed value of 150k. They offered a policy of 4500 per year lots of restriction (no work only weekend drives limited 3-4k miles per year and no seasonal policies) I have a call to Leland but haggerity seems crazy