Insurance

[nis350]

Let's say if you got a great deal on a car ($25k for a NA2). Does anyone know if the insurance companies pay the actual market value of the car or the maximum of what you paid ($25k) in case of a total loss, specificly in California?

Do the insurance companies have access to the actual sale price of the car from DMV?

Thanks....

 

[mknmoves]

Let's say if you got a great deal on a car ($25k for a NA2). Does anyone know if the insurance companies pay the actual market value of the car or the maximum of what you paid ($25k) in case of a total loss, specificly in California?

Do the insurance companies have access to the actual sale price of the car from DMV?

Thanks....

I think it's going to come down to the individual insurance company, of how much they will pay. Some use actual market value, some use NADA, etc.

I don't know if the insurance companies have access to DMV records but so what if they do....if you get a great deal on a car or get it as a gift, they still have to pay replacement value.

I know that in some states they will pay the tax and registration fees, if the car is a total loss.

 

[LoveNSXs]

yeah, depends.

i wrecked my 91 that i bought for 15k. they based it on market value based on condition, mileage, and whatever compared to anything within the area. the next one they found was 24.7. I settled :biggrin:

 

[nis350]

yeah, depends.

i wrecked my 91 that i bought for 15k. they based it on market value based on condition, mileage, and whatever compared to anything within the area. the next one they found was 24.7. I settled :biggrin:

I know that insurance company would ask for the purchase price when the car is added to the policy. It is reasonable to go with the market value. Thx.

 

[aridon99]

I went with an insurance company that specializes in collectors cars. They just asked me how much I would like to insure the car for. I gave them a number and they told me it would be $350 a year

 

[Big_D]

Insurance companies will give you what they think is fair market value for the car regardless of what you paid. If you want to insure it for a certain amount you need to get a Stated Value Policy. Collector car insurance companies like Grundy and Haggarty offer these at pretty good prices.

 

[tbromley]

I know that insurance company would ask for the purchase price when the car is added to the policy. It is reasonable to go with the market value. Thx.

I've never been asked what I paid for a car by State Farm. That is no measure of what they will pay if the car is totaled. I've been there with another car and they gave me, especially after I had evidence of a great repaint (320i BMW), more than it would have sold for. Good insurance companies are worth the premium, but then my insurance is very reasonable as in less than 900 a year on my 91 NSX.

Haggerty Insurance and the other classic car insurer are both based on you not driving your car as a daily and sparingly with a certain not to exceed mileage per year. For most it would probably work - although it is restrictive - like 2500 a year maybe?- and they replace it for what you insure it for as in a specific amount established at the time of taking out the policy. That's my experience.

 

[Matt Knight]

Most insurance companies use the term "Actual Cash Value". This refers to the amount required to buy a car (just like the one you lost) today. They take into account the mileage and condition of your car and compare it to cars that have recently sold. There can be some negotiation. In other words; you get to sell your car to the insurance company.

Hagerty just changed their terminology from "Agreed" to Guaranteed" value. When you insure the vehicle you get to say what you want it insured for; if Hagerty agrees with you, that is what the car is insured for. Tim is right; Hagerty does place limitations on how the car can be used. You cannot insure your daily driver with Hagerty.

The right type of insurance depends on how you use the vehicle. I would suggest dealing with an agent; going online and being your own agent can be hazardous.

My $.02,

Matt

 

[LoveNSXs]

I know that insurance company would ask for the purchase price when the car is added to the policy. It is reasonable to go with the market value. Thx.

I was added to my dad's policy. They did not ask for purchase price. just Vin, mileage, color.

 

[nsxtasy]

If you want to insure it for a certain amount you need to get a Stated Value Policy.

You mean an Agreed (or Guaranteed) Value Policy. DON'T get a Stated Value Policy. To understand the difference between an Agreed Value Policy and a Stated Value Policy, click here.

 

[tbromley]

You mean an Agreed (or Guaranteed) Value Policy. DON'T get a Stated Value Policy. To understand the difference between an Agreed Value Policy and a Stated Value Policy, click here.

Good resource and great write up on insurance of this type!

 

[Big_D]

You mean an Agreed (or Guaranteed) Value Policy. DON'T get a Stated Value Policy. To understand the difference between an Agreed Value Policy and a Stated Value Policy, click here.

Oops your right Ken, I did mean Agreed.

 

[nis350]

Thank you all for the info... Good to know that insurance companies go by the market value rather than the purchase price. :wink: