In reply to a message from Lynn Gardner sent Tue 21 Nov 2006:
Lynn,
No experience with AFI but what he is saying is the way that
the regular auto insurance companies work.
The fundamental difference between ‘‘regular’’ auto insurance
and collectors auto insurance is precisely what your agent
says. In the event of a claim without ‘‘agreed value’’ then
the insurance company will pay out or write off based on
their assessed/market value. Most regular insurance co’s
will not even entertain agreed or stated value in my
experience. AFI will, it seems in an honest admission, will
always pay out on the lesser of the stated or the assessed.
Do you trust the assessed value ever to be the same as
stated? I wouldn’t. The difference in the risk is the
difference in the cost!
The collectors insurance companies as far as I know all use
agreed value, and will pay out on that. This is a
fundamental principle to the collector insurance business.
If you are insured by collectors for say $40k then you can
expect to get 40k if stolen or damaged as in written off.
Because you pay a premium for that level of coverage. A
stated value with AFI may cost you a lot less, but not so
much fun when they write off the E-Type with an assessed
value of $5k.
Given that my auto insurance for a 2002 Jeep Lberty and a
2003 Golf GTI when it would be a miracle if they are worth
more than $20k combined is around $1200 per year in NJ for
damage to the vehicle, collision and otherwise, ignoring
medical, personal injury etc., $750 to insure the repro D
for $120k agreed value for collision and ‘‘other’’ is a bargain!
I personally wouldn’t want to have the ‘‘experience’’.
Regards
Keith–
The original message included these comments:
We’ve recently changed to AFI for our home and cars, the agent
inquired about my carrier for the E’s and offered a preliminary
estimate that was several hundred less than Hagerty. I didn’t think
to much about it at the time but SWMBO ;-)has asked that I check it
out. I have a call out to the agent inquiring as to the limitations,
one thing is that AFI requires an estimate for the car(s) value where
as Hagerty went by stated value. The agent went on to say that when
push comes to shove the stated value has little relevance as the Ins.
Co. will base their reimbursement on an appraisal at the time of the
loss, if it disagrees with the stated value then it would be the
lesser of the two.
–
Keith Bertenshaw
Rockaway, NJ, United States
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