Who is insured for Agreed Value? <- a must read for Canadians!!!!

[Red]

Imagine if your 1991 NSX is written off -

you may get black book value for it which would be about $10k max.

You should get an appraisal and file it with your insurance company - as should everyone who's done work on their car - otherwise you're in line to lose lots of $$$!

With my 1987 Porsche I got it appraised for agreed value and filed the appraisal with my insurance broker so in the event anything happens I don't get the $10k-ish that the car would be worth if it wasn't "done up".

If I were any of you with a 2000 or older NSX I'd be talking to my Insurance Broker about the car's value as well as getting an actual letter if they agree its worth more without needing an appraisal.

As well, if I had an SC, custom rims, etc. in my car I'd definately want an appraisal on file so I could get the value back.

BTW - Appraisals cost about $200 and last for several years before they need to be re-visited.

 

[Bram]

Hey Stu, Did someone in the GTA "write off" their NSX ?

Or this is just an FYI post


Bram

 

[Red]

Hey Stu, Did someone in the GTA "write off" their NSX ?

Or this is just an FYI post

FYI since I was talking insurance in another thread and filing my Porsche Appraisal off my desk while doing it.

Need parts?:biggrin:

 

[nsxtasy]

Here in the United States, insurance companies reimburse totalled claims based on the car's market value. In all the cases with which I'm familiar - too many, unfortunately - the reimbursement was approximately the same as the market value (about what is indicated in the FAQ section on Pricing) and the owner was reasonably satisfied with it.

Do they do things differently in Canada? What is this "black book value" you refer to? Here, you can look up absurdly low values on websites like Kelly Blue Book, but that's not at all what insurance companies use on claims.

 

[ffffanman]

Yes, you want an SEF 19A.
Not just a SEF 19.
Trev
Your insurance company will know what your talking bout.

 

[Red]

Yes, you want an SEF 19A.
Not just a SEF 19.
Trev
Your insurance company will know what your talking bout.

Trev you're right, but SFCA 19A is Canada wide version of SEF (Which is Alberta Only I believe!)

I have tonnes of experience with what insurance companies pay for losses since I have an auto finance company.

What they do is look between Black Book (Which represents Canadian Wholesale value - sometimes on drugs) and reasonable "market".

You can try prove Market to a point by showing them Autotrader values, but they always choose the lowest priced vehicle and ignore milage, colour, etc.

If you've modified your vehicle you're screwed without an appraisal.

Also, since there are so few NSXs it will be hard to establish market value.

 

[NSX2398]

Isn't there also an option you can ask for called being insured for "replacement value"?

 

[Red]

Yes! Replacement value is determined only by an Appraisal.

It prevents you from insuring your 1972 Pinto for $1,000,000 and then getting it rear-ended by your best friend just as you were stepping out to help an old lady cross the road!

An independant, certified, Appraiser determines the value, takes picts and documents the mods to the car in a document that then states the replacement price. (Generally they will talk to you about what you think its worth, but they need to agree - its easier to get them to drop the value than increase it).

 

[lithiumus]

This is a definite must. I performed my appraisal as soon as the car completed Federal and Provincial inspections.

Suprisingly, even though the value of the car more than tripled thier replacement value, my insurance only increased a few hundred dollars / year. Not a big deal at all...

The last thing you want is a fender bender which will inevitably cost over $10k to end up writing the car off or worse as Stu indicates if the car is totalled and all you get is $10k.

 

[satan_srv]

If you've modified your vehicle you're screwed without an appraisal.

Surprisingly..when my Prelude was stolen 3 years ago I was able to use Receipts of $3,000 in OEM Honda Parts and Labour/Machining etc (i left out the performance parts like pistons/cams etc..) towards the claim payout.

I ended up getting $16000 after 3 years, and I paid 16,500+tax in the first place 3 years ago! So, at least with some companies, you can add extra value over the Book vs. Market numbers if you have good documentation. But of course these were not considered 'mods', it was a rebuild.

 

[Tony Montoya]

So a Prelude is worth 16k but an NSX is only worth 10k?

Right.

 

[nsxtasy]

So a Prelude is worth 16k but an NSX is only worth 10k?

Right.

I'm sure Stu was just joking about only getting paid $10K for an NSX. Heck, I've never heard of one getting totaled for as little as 2.0-2.5 times that figure. And I bet he hasn't, either.

 

[BioBanker]

For those of you who do not know, Stu just bought a full race 944 Turbo.

Ive seen it - it is INCREDIBLE!

It is plated, but I bet its not "legal"!

So he is referring to his insurance coverage of it. It is a prepared race car that is worth significantly more then the $10k or whatever KBB shows for a 944T of the same year.

Go Stu Go!

 

[Arshad]

Yeah I've been meaning to do this for the past two years as well w/ all the mods. When I talked to my insurance agent about it, he mentioned that my rates should not go up significantly even with substantial modifications. The only thing they did not cover were internal engine mods. All my stuff is bolt-on, so there should not be a problem. I will definitely get it done in the coming weeks.

 

[Tony Montoya]

Go Stu Go!

Why don't you let Stu speak for himself. He wrote NSX and 10k in the same sentence.

You should change your avatar Spa.

 

[Red]

Why don't you let Stu speak for himself. He wrote NSX and 10k in the same sentence.

You should change your avatar Spa.

Tony, for you from my lips - after I put Dave's bong down!

1) CANADIAN BLACK BOOK VALUE of an older (1994 minus) NSX is only about $10k (for as far back as they carry listings for NSXs - they are missing some years), the fact they sell for more COULD be lost on an insurance company - mine had no idea what an NSX was at first - now go try to argue with a claims adjuster, never mind just finding one like yours for sale to prove your price!

I'm not saying you'll get $10k, I'm just saying that it could be the insurance company's the starting number based on CBB if you don't have Stated Value Insurace.

To Dave's point: My Porsche is, at best, $10k as well - although it appraised at $65,000, and I asked for $45,000 in the report since I didn't think I should be insuring it for much more than I could prove I paid.

2) What's wrong with SPA's Avitar, Don't smoke? Good, we won't have to pass to you!:biggrin:

 

[BioBanker]

You should change your avatar Spa.

Why? Do you know why I have it?

Go-fast-crack-pipe!

 

[Tony Montoya]

Why? Do you know why I have it?

Go-fast-crack-pipe!

Fair enough. I liked your NSX more.

 

[nsxsupra]

Why? Do you know why I have it?

Go-fast-crack-pipe!

Now you have it, still hungry for more?:smile:

 

[Red]

Now you have it, still hungry for more?:smile:

I'm sooooooo hooked!

Look at me! Its 6:15 on a Holiday Friday and I'm getting up so I can get to the track and suck on the 'pipe!

I'm gonna try Dave's SC today and I may end up a junkie!

1) A substantial paortion of my disposable income will go to my habbit
2) I already jones for it
3) When I'm not doing it I'm thinking about it
4) I want to sit around and talk about it all the time
5) I'd give up sex for it, well, maybe no sex!:wink:

Tony, take a hit, go for a quick run with an instructor!

Come out to Mosport today, we'll put you in Dave's car for a spin (with Dave driving) - you'll never go back!:biggrin:

Stu AKA Speed Pusher

 

[Arshad]

You'll probably be placing your order with Comptech when you get back from the track ;-)

 

[Red]

You'll probably be placing your order with Comptech when you get back from the track ;-)

No orders! I was driving the Porsche - just a big smile!:biggrin:

The Porsche is well balanced and once I unlearn driving the NSX for its amazing linear power and get used to the boost (like my last run session where I was smooooth - finally!) I'm gonna be smiling from ear to ear (like I am now):biggrin: :biggrin: :biggrin:

 

[NSX2398]

I'm not saying you'll get $10k, I'm just saying that it could be the insurance company's the starting number based on CBB if you don't have Stated Value Insurace.

So, I checked with my local insurer (a Sask Gov't Insur agent) and he told me that in order to apply for Stated Value Insurance, the car has to be more than 15 years old and driven less than 8000 km's per year. Since my car is a '91, I might qualify by time but not by mileage (I'm closer to 10K). This may just be a Sask thing...or maybe the insurer. Do you have similar restrictions? Who are you insuring with?

But he also said that if I can show (ebay, autotrader, etc) that market conditions are higher, then they'd use that. Granted, they may do something arbitrary like taking the average of 3, but mine is high mileage (over 200K now) so I'm likely to do better than the average there. They also said that they'd take into account any receipts for work/mods. So, if they'll look at real market conditions and will take work receipts into account, what's the motivation to go to the extra cost of doing an SEF 19A even if I could?

 

[Red]

So, I checked with my local insurer (a Sask Gov't Insur agent) and he told me that in order to apply for Stated Value Insurance, the car has to be more than 15 years old and driven less than 8000 km's per year. Since my car is a '91, I might qualify by time but not by mileage (I'm closer to 10K). This may just be a Sask thing...or maybe the insurer.

If its Government insurance it's different from Ontario and I have no expertise - but, as with all insurance - get what he said in writing!!!!!

So, if they'll look at real market conditions and will take work receipts into account, what's the motivation to go to the extra cost of doing an SEF 19A even if I could?

To be absolutely sure you're gonna get what you expect (like in the event they won't give it to you in writing) My partner is a lawyer, when he was articling he worked for a big firm in the insurance section. Whenever there was a specific sized claim the insurance co would pay for two hours of law student time to see if they could avoid paying the claim - for them its not cold or heartless, its just business - if they paid all their claims in full they wouldn't have the $$$ to pay dividends, their stock would drop and the CEO, etc. would be fired - so you see, the motivation for claim avoidance comes from the top!