Agreed Value with Insurance - Do you have it?

I went through this same dilemma right before I purchased my gated 360 Spider. My wife and I discussed it at length (she's my business manager) and decided that it would make the most financial sense to "self insure" for the agreed on value. I hold a standard USAA policy on the car and it will likely pay for a very large percentage of the replacement cost if the car is totalled. Taking into account that this is unlikely to happen, and it's far more likely I'll go another ten years without a claim, self insuring made the most sense.

If I owned one of those million dollar plus Ferrari's that are sought after by museums and collectors, I'd have a different view. My car is common and replaceable.

 

agree ,
Cali t insurance can be high!
I Have Liberty Mutual full coverage w/replacement value, $1600 annual cost
Good Luck!

 

I just added my 2013 Cali to an Allstate policy as a pleasure vehicle with full coverage (actual cash value) and $250k/$500k liability for $392/year. This is on with 3 other vehicles and multi-policy discount with home, but still much lower than $1600... in fact all 4 cars with this level of coverage isn't even going to touch $1600. Maybe rates are lower here in Maryland.

 

Where you live has a major impact on rates and what the carrier will or won't insure.
I have my F-cars for agreed value with a "classic vehicle" carrier and it isn't much more than my other "regular" cars are with Allstate.
Besides the fact that, contrary to what you did, Allstate told me they don't insure Ferrari's.

 

They covered my Cali, but would not let me do their pay-by-the-mile policy (milewise) like my other vehicles. The Ferrari had to be unlimited mileage, but at least the annual rate wasn't too bad. Now that we are all working out of our homes and no trips to the airport for at least the rest of the year, milewise has cut our premiums significantly.

 

I do with PURE. Have a few f cars on the policy And they actually made sure they were covered.

 

Mine costs a little more due to a number of factors:
1.Cali T is a twin turbo
2. Higher replacement cost
3. + 100 HP & + 100 Torque
4. I keep higher limits
5. That is the actual cost not what I told the wife!
I agree It’s high! my other vehicles are much lower than the Ferrari but it’s worth It!

 

Haha

 

I wonder, quite honestly, if the car is insured for an agreed value, if that would make them less inclined to total it based on the damage if it would be even a little less expensive to just repair it ... in which case you wind up with a repaired car and the diminished value from a severe accident. I'm sure there's some magic formula they use with the current market value and the cost of repairs, but if you are insuring it for a higher number than that, the equation might change.

 

I never thought about that, but that is an interesting question.

 

I'm sure it would not be a unilateral decision and would be open to discussion if, in fact, the $$ amount involved was not an open and shut case.

 

Since you are buying a newer mass produced car, I don’t think you get anything for paying extra for agreed value. I chose to keep a standard policy for my Lamborghini Diablo and Ford GT, but will switch somewhere down the line.

 

I have it on my 355 in the event the value dropped....it was a good call.

 

$1600 high? It’s a great price to insure a modern Ferrari.

When you say “replacement value,” do you mean “agreed value?”

 

You added a modern Ferrari to an insurance policy with a legacy company and it added only $392 per year??!! That is insanely cheap and awesome.

I have very low insurance rates and I’m pretty good at shopping. Unfortunately I live in the worst insurance place in the country (South Florida), and I previously lived in one of the worst places (near NYC). I’ve been navigating the treacherous waters of high insurance rates and have arrived at some very low rates; but you my dear sir take the cake. Wow.

Original poster:
I have agreed value on very niche and specialty cars like McLaren 650S Spider. The agreed value is a complimentary feature of the classic car insurance policy, which sometimes is the only type of policy that would insure some cars like a McLaren at a reasonable price. I pay $1400/year with 3k miles/year allowed and agreed value in FL for my 650S Spider. In Florida, with State Farm that car would be $4k per year and $8K per year with Geico (Geico is way more than expensive in FL than in NY, as are rates generally). In New York, I paid $1800/year for a McLaren 12C Spider with Geico, which is a fairly cheap company in NY. Hagerty and all the other specialty companies were way more than Geico in NY every time. When I was in NY, I chose to say the heck with those other companies because Geico insured everything — and at a reasonable price.

Ohhhh, the “aftermarket parts” scare tactic? Well here’s my answer to that — there’s no such thing as aftermarket parts for a Ferrari! This isn’t a Buick or a Chrysler. If a Ferrari needs repair after an accident, the insurance company will have to cry boo-hoo because there will be no choice but to use OEM parts. If there’s any funny business, I am confident my body shop guy and I will properly handle both the adjuster and the insurance company.

In the past, my Ferraris, Aston Martins, etc. had simply been with Geico in NY. I figured I’d take my chances with Geico if the big one happens. When I owned my F430, I figured at the time there is no way I am going to allow Geico to tell me that my 430 6-speed is worth $125k when it’s worth $200k. In any event, I’m not going to the poor house if the insurance company screws me. It’s a lesson I’d have to learn, but it won’t hurt me, and in general it wouldn’t hurt most people on this forum. I don’t like being told when I can drive and where I can drive, which is what these specialty insurance companies do. I also don’t like being told by some specialty company that I should pay 2x-4x more for the privilege of insuring with them with more restrictions. Legacy companies just insure the car and you are free to use it how you please with no questions asked. Sometimes that’s the more sensible option if the price is right.

 

Basic auto policy's pay up to book value, which drops rapidly and in a total loss may not cover the cost to actually "replace" with same condition, mileage etc.
I see no advantage to agreed value insurance except in cases of collectable, antique or rare vehicles.

 

I have my 2015 Cali T insured with Hagerty and it's $3k per year. Shopping around, I've found that nobody outside of the specialty insurers will insure it. My other cars are with Progressive, who won't insure the Ferrari, and my Hagerty policy is underwritten by Progressive Classic Car by Hagerty.

 

Update:
Switched all my policies to Erie:
2015 CaliT was $1600 Year 2K mileage limit.
$428 year up to 8500 Miles with Erie
Thanks for the heads up Marylandguy!

 

Nice!

Is that with agreed value?

 

yes

 

I just renewed mine with Geico ... 2015 Cali T and 2020 Alfa Romeo Guilia Ti Sport AWD ... about $1,175 annually per car. 250/250/100 (required for my umbrella), $1000 deductible. No mileage limits. Surprised the premiums are almost identical for the cars.

And that was after I had an accident with the Cali T in the spring ... a minor one (10 mph, no airbags and it was driveable) but the repair cost was still staggering and Geico paid up without so much as a peep.

However, that's non-agreed value.

 

That's good to hear. Sometimes when you see a company that advertises so much you wonder are they really as good as their commercials portray.