[Healeys] Insurance, More

[Richard Ewald]

One of two

> I don't have a dog in this fight, but I am somewhat baffled none the
> less.  I used to be licensed as a property and casualty agent, and it still
> doesn't make sense to me.  Let me explain.
> Reading the link given by
> Dallashttp://www.accuratevalue.com/classic_insurance.html it says that
> >>"#1 Agreed Amount (or Agreed Value)
>
> * *The most desirable for car collectors. It leaves no doubt as to what
> will be paid in the event of a loss. With Agreed Amount coverage, the amount
> you see on the policy is what you'll get if the car is written off as a
> total loss. Period.
>
> How Do I Set My Agreed Value?<http://www.accuratevalue.com/classic_insurance.html#Set_Agreed_Value>
>
> *#2 Actual Cash Value (ACV)
> *Typically provided by standard auto insurance policies. The insurance
> company decides what you get paid at the time of the loss. While you may
> have some input if you don't agree with them, the final decision is theirs.
> It will be based at least in part on using sources which you may not agree
> with. If you refuse to settle for what they want to pay you, you may need to
> resort to legal action to arbitrate the issue. We can help if you are
> already in a dispute, this service can be very expensive.
>
> *#3 Stated Amount (or Stated Value)
> *Often provided on collector and limited use policies. The policy language
> typically states the insurance company will pay "the Stated Amount, or the
> Actual Cash Value, or the cost to repair not to exceed the Stated Amount
> whichever is less.".
>
> Besides mixing apples and oranges (#1 talks about a total, #3 mentions
> cost of repair) the link goes on to say:
>
> >>"Guess what: The Stated Amount is just used to determine your premium
> cost: The higher your Stated Amount, the higher your insurance premium. The
> contract language permits them to pay what they decide the Actual Cash Value
> of the auto is. They are under no contractual obligation whatsoever to pay
> the Stated Amount. Surprise!
>
> So are they trying to tell me that with a agreed value policy my premiums
> DON'T go up with a higher agreed value?  Pull the other one, it has bells on
> it.  As far as what the pay out is, I think it is safe to assume that with a
> limited use policy, it is far more likely that your classic car would be in
> a less than total accident.  What they don't talk about in this link is how
> the insurance company handles a bent fender on a $50K agreed value policy vs
> a $50K stated value policy.  In both cases I got $5 that says they won't
> hand you a check for $50K.  So in a less than total accident, it appears
> that there is no functional difference that I can see between these two
> types of policies.  I would have to read the actual policy language to be
> sure however.
>
> Also IMHO opinion a mailed in appraisal is probably next to worthless.
>
> Rick