Home Forums Hunting & Shooting Hunter's Campfire classic car or market value car insurance

can some of you fine Americans offer companies who will ensure a vehicle at market value instead of cash value?

for instance, 1966 Ford Mustang..market value is crazy high, but all insurance companies want to insure for is NADA value or some other chicken bone rolling source for actual cash value..

thanks.

Lloyd's

I would try Hagerty Insurance. They specialize in classic car insurance.

Haggerty

Hagerty and Grundy are the 2 big players currently. Hagerty offers more bells and whistles but is more expensive, both with accept a stated value with photos and documentation.

Yup, Haggerty . That reminds me I have to up the insurance value on my old vette this year when I get the drivetrain finished.

Try Hagerty. You can also get Hagerty through Allstate, if you use them. Talk with your agent.

YEP. That's who I use for my 1965 Mustang. You agree on a market value with them, and go from there.

A good way to determine the value of your car is to look at Bring a Trailer Auctions

There are a number of companies that will insure classic cars, quite possibly your current auto insurance company.

Hagerty, American Modern, Safeco, Nationwide, among others.

Actual Cash Value means the value of the car at time of loss. This is negotiable with the adjuster, and the car owner needs to back up his valuation. It's a bit like buying/selling a used car.

Stated Value means that is what the car is worth, no more, no less. If the car appreciates over time, it is the owners responsibility to tell the insurance company of the increase. If the car is stolen, the insurance company typically writes the check for the Stated Value of the policy, and not any increased value.

In every case, I encourage clients to take photos, inside and out, and of the odometer.

Some classic car insurance companies send out an annual questionnaire asking for mileage updates, and sometimes new values. They might also restrict who can drive the car.

dont they limit most classic car insurance to a couple hundred or 1-2 thousand miles a year

Yes

"Actual Cash Value," in insurance policy terms, means the "wholesale" value of the car, not market value. Wholesale is a "blue book term, which usually is for what a dealer would buy your car, to resell it.

No, it does not mean "wholesale". It means the actual cash value of the car at the time of loss.

Here is the description from the International Risk Management Institute: Actual Cash Value (ACV) — in property and auto physical damage insurance, one of several possible methods of establishing the value of insured property to determine the amount the insurer will pay in the event of loss. ACV is typically calculated one of three ways: (1) the cost to repair or replace the damaged property, minus depreciation; (2) the damaged property's "fair market value"; or (3) using the "broad evidence rule," which calls for considering all relevant evidence of the value of the damaged property."

'Fair Market Value is not "wholesale". It means 'Market Value'.

Which can be a double edged sword, compared with a stated value policy. The market can be fickle, and a classic car that may bring $50k one day, may plummet to $30k next month.

From practical experience as an insurance agent, “fair market value” does not mean retail market value. It means wholesale market value and adjusters commonly use blue book wholesale values.

I've had great luck with Haggerty. My '63 Studebaker was hit by the tornado in Dallas on 10/26/19 and suffered a fair amount of damage. Haggerty was quick to respond and to cut a check that was more than adequate. I recommend them highly.

I agree.

The same can be said for a Stated Value policy. If the car's owner does not keep up with current values, he could lose money if the market goes over his Stated Value.

Same here, 31 years as an agent/broker. 25 years with Farmers and the last 6 as an independent broker.

As you know, the insurance companies are supposed to make the client 'whole' again, bringing them back to pre-loss position, no more, no less. If an adjuster writes the client a check for wholesale value, how does the client get 'whole' again? Most people are not able to go buy a car for 'wholesale' like dealers can.

Adjusters should also include sales tax (on the settlement value) and license plate fees (pro-rated).

As part of the negotiations, I tell my clients to ask for dealer handling fees as well, which are typically $200-500+. I doubt they ever get it, but it's a bargaining chip, lol.

"fair market value' means fair market value. The client needs to negotiate with the adjusters to get fair market value, just like negotiating with a car dealer, because that is what the adjuster is doing to the client.

Some insurance companies are very fair on the first offer to clients, while others start with a low-ball offer.

Here's a real world example of Fair Market Value: On Jan, 01, 2021, a client had his motorhome stolen from a storage lot, a 1995 Pace Arrow. He bought it private party for about $11,000, 3 years ago. The MH was a total loss, and, because RV demand has skyrocketed, so have values. The insurance carrier I placed him with paid $21,524.85 to him. The policy was Actual Cash Value.

The client was, shall we say, pleased.

OrangeOkie, do I recall you are, or were, a Farmers agent at some point?

I was a Farmers Agent here in Oklahoma City.

Heathcock has agreed value....