Insurance

[Montie Henderson]

I know we have addressed this topic to death.  My car has always been insured through State Farm along with my home and other cars.   

I just got a notice regarding a change in their wording about the value. 

Their new wording state:

 “We have made a change to the Antique Classic Motor Vehicle endorsement under your State Farm Car Policy.  We have added language to emphasize that the limit coverage is the “Agreed Value” of the insured vehicle.  The agreed value of your car is shown on your Declarations Page.”

They had me get it appraised when we first insured it, appraiser came up with $18,500 about 6 years ago Rate is approx. $150.00 a year.  This summer I’m planning to get it updated with a new appraisal and make sure to Declarations page is updated and correct.

Just Thought I would share in case anyone else is shopping for insurance.

[Paul Mossberg]

It’s a good thing that they are clarifying what the “agreed value” is. But depending on other provisions in the policy, that “agreed value” might only be used as a cap on payment if the car is stolen or totaled.

But that is not the total picture. Do yourself a favor, look for a provision in your policy that says something like “Limit of Liability”

Standard auto policies will include something like this:

An adjustment for depreciation and physical
condition will be made in determining actual cash
value in the event of a total loss. 

Even with the clarified “agreed value,” that sentence would still mean they might try to depreciate the car. 

You do NOT want to see that language or anything like it in your collector car policy.

PMOSSBERG2016-03-22 15:42:02

Paul Mossberg
Former Owner of a 1981 Classic Roadsters Ltd. Duchess (VW)
2005 Intermeccanica Roadster

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