I apologize in advance - insurance question

[BarryK]

Hi all

I need to change my insurance coverage on BABY, my '65 Coupe, next month.
Up to now BABY has been insured under Nationwide alone with my other cars and home policies. I wasn't able to get "collector car insurance" for BABY from companies like Grundy, Haggerty, etc back when I first got her in the spring because my wife had two tickets on her record and they only allowed one ticket per driver in the household. They wouldn't even allow me to "exclude" my wife off the policy because she lives here.
Nationwide is costing me a fortune to insure the Vette under "Pleasure use only" with high coverage of 100,000/100,00/300,000 and $500 deductible.
One of my wife's tickets comes off in Nov so i'm now starting to think about switching to a more reasonably priced policy.
I know this subject has been beat to death, but can someone please explain the differences between Stated Value and Agreed Value and which is best to have?
I've read other threads but it seems that some people have policies with one while others have the other....
I just want to make sure I'm insured on BABY properly and without problems in the future in case anything happens.


2nd question - if i have an umbrella policy on my cars and home now, will it still cover the Vette also if the Vette is moved to a different insurance company? Right now ALL the policies including the cars, the house, and the additional umbrella are all under Nationwide. I'd hate to have the Vette fall out from the umbrella coverage

thanks for your help!

Barry

 

[allcoupedup]

Let's say you are the agent and I am the Corvette owner

Agreed Value: You and I agree the Corvette is worth $30,000. Upon total loss you pay me $30,000.


Stated Value: I state that my car is worth $30,000 and you record that value. Upon total loss, you pay me UP TO $30,000. I currently have a stated value policy through State Farm and my Agent could no explain the
UP TO part. I will be switching shortly.

Brian

 

[BarryK]

Let's say you are the agent and I am the Corvette owner

Agreed Value: You and I agree the Corvette is worth $30,000. Upon total loss you pay me $30,000.


Stated Value: I state that my car is worth $30,000 and you record that value. Upon total loss, you pay me UP TO $30,000. I currently have a stated value policy through State Farm and my Agent could no explain the
UP TO part. I will be switching shortly.

Brian

well, that was clear cut, easy to understand, and to the point.
thanks Brian!

now i know i definetly want to make sure to go with Agreed Value.

Should I assume that policies with agreed value are more expensive than stated value? although ANYTHING will be cheaper than what i'm paying now.

 

[ptuner11]

http://www.hagerty.com/

Hagerty seems to be the most recommended collector insurance here. i have it and the rates are very reasonable. i've never submitted a claim but i've read in some threads that they pay up.

 

[BarryK]

http://www.hagerty.com/

Hagerty seems to be the most recommended collector insurance here. i have it and the rates are very reasonable. i've never submitted a claim but i've read in some threads that they pay up.

yes, I'm going to look at Hagerty, Grundy, Great American, and a few others.
Problem with researching and deciding is that the rates seem similiar between them all - only minor differences and to me the yearly rate, although important, is secondary to how the company handles claims. i've learned the hard way in the past that a "cheap" rate doesn't make up for the insurance company giving you a hard time about paying a claim or not paying it at all. Overall, collector car insurance is inexpensive because of the relatively few claims submitted to the companies so it makes it harder to find out just how well they do handle claims if it becomes necessary to ever submit one.

 

[ctjackster]

Barry - if I recall corectly you do not have a car to drive aside from your vette - all of the collector car companies write this biz on a class rating based on the car not being a primary vehicle for a driver, and they assure this by needing to confirm that each licensed driver in the household has access to a seperate car (one car per driver) that does not include the classic car. I would think this would trip you up as far as getting AV coverage from one of the Haggerty, etc.-type producers.

aside from that advice, I ain't sayin nuthin more on the subject!

 

[ZRGator]

Hi all

I need to change my insurance coverage on BABY, my '65 Coupe, next month.
Up to now BABY has been insured under Nationwide alone with my other cars and home policies. I wasn't able to get "collector car insurance" for BABY from companies like Grundy, Haggerty, etc back when I first got her in the spring because my wife had two tickets on her record and they only allowed one ticket per driver in the household. They wouldn't even allow me to "exclude" my wife off the policy because she lives here.
Nationwide is costing me a fortune to insure the Vette under "Pleasure use only" with high coverage of 100,000/100,00/300,000 and $500 deductible.
One of my wife's tickets comes off in Nov so i'm now starting to think about switching to a more reasonably priced policy.
I know this subject has been beat to death, but can someone please explain the differences between Stated Value and Agreed Value and which is best to have?
I've read other threads but it seems that some people have policies with one while others have the other....
I just want to make sure I'm insured on BABY properly and without problems in the future in case anything happens.


2nd question - if i have an umbrella policy on my cars and home now, will it still cover the Vette also if the Vette is moved to a different insurance company? Right now ALL the policies including the cars, the house, and the additional umbrella are all under Nationwide. I'd hate to have the Vette fall out from the umbrella coverage

thanks for your help!

Barry

How soon some people forget conversations we've had regarding this subject...ah well, into the breach once more.

Let's talk about question #2 first. MOST companies will still keep the umbrella coverage in force if you have a vehicle or any other property with another company, assuming you meet their underlying limits requirement for the policies with another company. They will most likely require proof that you have a policy in force and want a copy to verify the underlying limits requirement. The limits you listed looked like they were written bass-ackwards. Usually I'll see limits like 100/300/100 and that won't be enough for some companies (today most are looking for 250/500/100 for underlying limits). For a discussion about the rest, private me or look for me in OC this weekend......

 

[BarryK]

Barry - if I recall corectly you do not have a car to drive aside from your vette - all of the collector car companies write this biz on a class rating based on the car not being a primary vehicle for a driver, and they assure this by needing to confirm that each licensed driver in the household has access to a seperate car (one car per driver) that does not include the classic car. I would think this would trip you up as far as getting AV coverage from one of the Haggerty, etc.-type producers.

aside from that advice, I ain't sayin nuthin more on the subject!

Hi CT

at the moment that is correct - no daily driver for me and with BABY in the paint shop my wife and I are down to sharing her Lexus but I will be finding a daily driver for myself. I know I can't apply for collector car insurance until that time.

 

[BarryK]

How soon some people forget conversations we've had regarding this subject...ah well, into the breach once more.

Let's talk about question #2 first. MOST companies will still keep the umbrella coverage in force if you have a vehicle or any other property with another company, assuming you meet their underlying limits requirement for the policies with another company. They will most likely require proof that you have a policy in force and want a copy to verify the underlying limits requirement. The limits you listed looked like they were written bass-ackwards. Usually I'll see limits like 100/300/100 and that won't be enough for some companies (today most are looking for 250/500/100 for underlying limits). For a discussion about the rest, private me or look for me in OC this weekend......

Dennis

forgive me if I have the totals in the incorrect order but i'll PM you in either case. I can't go to OC this weekend as much as I'd love to. Linda is working Sat so has the car and my local club has our own show on Sun.

 

[ctjackster]

or you could just search for the lively debate on this topic that went on in this forum in April of this year, some guy named DennisinMaryland from West Friendship, MD had the other side that time, no doubt he knows ZRGator or at least shares his views . . .

 

[lbitp37]

Just had a long argument with ALLSTATE. An umberlla policy is only valid if you have both Auto & Home ins. with the company
I have my house & 2 cars + umberllla w/ Allstate.
My vet is covered by leland-west, full coverage $500. ded.
My girls can't drive it, had to have a noterized statement signed by them (because of points).
Cost is $320/YR, 5000 miles / year max driving. As a colllectabe Car.

 

[IH2LOSE]

http://www.corvetteactioncenter.com/forums/showthread.php?t=45288&highlight=agreed
http://www.corvetteactioncenter.com/forums/showthread.php?t=46448&highlight=agreed

Let me know if you need more information barry.I just helped a fellow vette owner a settle a claim Its brutal dealng with insurance claims

 

[BarryK]

http://www.corvetteactioncenter.com/forums/showthread.php?t=45288&highlight=agreed
http://www.corvetteactioncenter.com/forums/showthread.php?t=46448&highlight=agreed

Let me know if you need more information barry.I just helped a fellow vette owner a settle a claim Its brutal dealng with insurance claims

Larry
thanks!

I did do a search and I think the links you provided were what I was looking for but didn't find.

I'll be sure to get AGREED value as my policy.

do you think on my '65 coupe, with 327/365 ORIGINAL numbers matching motor, teak wheel, sidepipes, complete body-off restoration, and now in the shop for a complete brand new fiberglass workover and paint job that $45,000 value is legitiment? too little? not enough?
god knows I couldn't buy another '65 and do a restoration for that amount but I don't want to go overboard on the value either.

 

[corvettegreg]

umbrella policy

I also had my insurance company tell me that all insurance....auto, collectors and homeowners had to be with them to allow me to maintain the umbrella policy. When I called and told them I was transferring ALL my policies since they did not have a good collector plan, the rules changed. Now they only require that I prove I maintain their minimum liability coverage on the collector policy.

 

[IH2LOSE]

I also had my insurance company tell me that all insurance....auto, collectors and homeowners had to be with them to allow me to maintain the umbrella policy. When I called and told them I was transferring ALL my policies since they did not have a good collector plan, the rules changed. Now they only require that I prove I maintain their minimum liability coverage on the collector policy.

Was it your insurance company who said this our your insurance agent,Some times the agent speaks for himself not the underwrighters.When ever I am giving an aswer I dont think is correct from my agent I just ask him if he is speaking for the under wrighter or his office.Ask that question once and youll see you be treated alittle bit different.An agent is supposed to work for you! Sometimes they forget that and should be reminded.I went through several agents before I found one who was sincerly concerned for my well being.(there still out there) Years ago when my kids were young we spent about 5 weeks traveling,I thought i had paid ever bill i would have to.Well dont you know I missed one the auto and homeowners anyways while I was a way we were sent a cancelation notice and he got a copy and paid my bill from his checking account.Been with him ever since.He rights all of my policies

 

[ctjackster]

I also had my insurance company tell me that all insurance....auto, collectors and homeowners had to be with them to allow me to maintain the umbrella policy. When I called and told them I was transferring ALL my policies since they did not have a good collector plan, the rules changed. Now they only require that I prove I maintain their minimum liability coverage on the collector policy.

hmmm, great real-life experience, thanks for sharing it. As far as I know, many personal umbrella writers do not (and cannot) REQUIRE you to maintain all of the underlying coverages with them, rather you must maintain your scheduled underlying coverages in like amount with (arguably) similarly reputable companies. You might encounter different rating plans from your umbrella carrier if you mix your underlying auto carrirer and your personal umbrella carrier, but that might be viewed as anti-competitve behavior in certain states . . . now, I won't even get into "whose" interests an insurance agent or broker is supposedly working on behalf of, but there is likely a distinction to be made between "direct writer" agents of just one insurance company (he is not the policyholder's pal) and "independent agents" who are appointed agents of more than one insurnace company (in theory such service policyholder clients by searching for the best rate and most advantageous terms) and pure "brokers" who, among the three, can most appropriately be thought of as hopefully having the policyholder's interests in mind. Note that all of these folks are paid on commission, and it is easy to get the mixed up notion that their commission is coming from or being allowed by/controlled by the insurance company.

End of insurance - legal lecture for today, back to talking about Corvettes!

 

[65vettish]

An umbrella carrier's underwriting criteria can require that the primary (underlying) policies be issued by them. Most umbrella policies state that the policy will respond only over those primary policies listed in the Schedule of Underlying Insurance. They also state that you must maintain the liability limits stated in the Schedule. Should your limits decrease, the umbrella will not respond until the limit that is stated in the schedule is exceeded.

Umbrella carriers who do write over other insurers can require you to carry minimum primary policy liability limits. Their underwriting criteria may also state that the primary insurer has an acceptable financial rating as established by A.M. Best - an insurer financial rating organization.

Laws governing personal insurance vary by state. In most states, umbrella coverage is not highly regulated because state's financial responsibility laws are typically not very high.

Another piece of unsolicited advise - when considering an umbrella, be sure that it provides uninsured motorists coverage. This is especially important if you live in a state like I do where the rate of uninsured drivers is extremely high.

 

[ZRGator]

An umbrella carrier's underwriting criteria can require that the primary (underlying) policies be issued by them. Most umbrella policies state that the policy will respond only over those primary policies listed in the Schedule of Underlying Insurance. They also state that you must maintain the liability limits stated in the Schedule. Should your limits decrease, the umbrella will not respond until the limit that is stated in the schedule is exceeded.

Umbrella carriers who do write over other insurers can require you to carry minimum primary policy liability limits. Their underwriting criteria may also state that the primary insurer has an acceptable financial rating as established by A.M. Best - an insurer financial rating organization.

Laws governing personal insurance vary by state. In most states, umbrella coverage is not highly regulated because state's financial responsibility laws are typically not very high.

Another piece of unsolicited advise - when considering an umbrella, be sure that it provides uninsured motorists coverage. This is especially important if you live in a state like I do where the rate of uninsured drivers is extremely high.

Excellent reply and also accurate.
Direct Writers (also known as "captive agents) do write for one company. However, as to whether or not they are working for you or for the company, the answer is...both. They are bound by the underwriting rules of the company for which they write, but they also (if they're smart) recognize that the policyholder makes the payments and thus, pays them. An Agent won't make a living if he runs off clients or does not have the client's interests in mind, also. Always look for a knowledgeable Agent in the area in which you have concerns. Ask the Agent to show you his underwriting guides if you have any questions. If the Agent won't do this; run, do not walk to the door.
Brokers have a different game to play. Let's say a broker has contracts with 3 companies - A, B and C. He has contracted to provide "x" number of policies with each company. I have seen a broker, who is supposed to shop for the best price with all of the companies he represents, place a prospective client with the company with whom he hasn't met his contractual obligation even if another company would be a better buy. This has been known to happen if the broker wants to keep his contact with that company in the following years.
The key is, and always should be, talk to your Agent/Broker and be sure to understand what you're getting. You pay too much money not to have it explained to your satisfaction.

As to whether dennisinmaryland and ZRGator share the same views, as another poster pointed out, I can assure you that they do, since dennsinmaryland and ZRGator is the same person. And I welcome all pm's with any additional questions on the subject.