Insurance - actual cash value
10-04-2009, 05:47 PM
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Insurance - actual cash value
This must be a common thing among all the owners in this forum.
Anyone given any thoughts to the fact that most (all?) insurance companies have a clause for older cars that says they will cover the "actual cash value" of the car in the event of a damage claim? I understood that this effectively means they can associate pretty much whatever they feel is market value for the car. Plus, this value actually goes down every year.
Anyone heard of this? I've chatted with some classic car insurers and they would be willing to take my car provided that I have proof of ownership of another primary car. Apparently classic insurance guarantees coverage of the appraised value.
Anyone given any thoughts to the fact that most (all?) insurance companies have a clause for older cars that says they will cover the "actual cash value" of the car in the event of a damage claim? I understood that this effectively means they can associate pretty much whatever they feel is market value for the car. Plus, this value actually goes down every year.
Anyone heard of this? I've chatted with some classic car insurers and they would be willing to take my car provided that I have proof of ownership of another primary car. Apparently classic insurance guarantees coverage of the appraised value.
10-04-2009, 05:58 PM
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88-300CE TWIN TURBO, 99-C43, 05-G55K, 71-280SL, 94-E320 CAB, 08 CLK63 BLACK SERIES
This must be a common thing among all the owners in this forum.
Anyone given any thoughts to the fact that most (all?) insurance companies have a clause for older cars that says they will cover the "actual cash value" of the car in the event of a damage claim? I understood that this effectively means they can associate pretty much whatever they feel is market value for the car. Plus, this value actually goes down every year.
Anyone heard of this? I've chatted with some classic car insurers and they would be willing to take my car provided that I have proof of ownership of another primary car. Apparently classic insurance guarantees coverage of the appraised value.
Anyone given any thoughts to the fact that most (all?) insurance companies have a clause for older cars that says they will cover the "actual cash value" of the car in the event of a damage claim? I understood that this effectively means they can associate pretty much whatever they feel is market value for the car. Plus, this value actually goes down every year.
Anyone heard of this? I've chatted with some classic car insurers and they would be willing to take my car provided that I have proof of ownership of another primary car. Apparently classic insurance guarantees coverage of the appraised value.
You buy the amount of insurance that you want and pay for that accepted and agreed upon amount.
I currently have three Mercs on such a policy and two Mercs on standard auto insurance policy.
10-05-2009, 03:58 PM
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Not sure I understood what you meant by you buy the amount of insurance coverage you want and pay for it? I thought that the insurance agency will ask for the current market value of your vehicle, and if it is used, how much you bought it for. Otherwise, I could buy a $1k car and get insurance for any amount, like $10k? I'm sure I mis-understood....
What I understood that actual cash value (ACV) means is that it is upto the sole discretion of the insurance company to establish the worth of the vehicle in the event of a claim. They can establish is regardless of what you told them or think it's worth. So for example, someone like myself with a highly maintained, original (except for Depo headlights and AMG monoblocks), never damaged, full maintenance history but high-mileage 300CE will have a hard time proving it is worth more than $4 - 5k. And having driven other models in the same price range, none are in similarly good condition so I would have a very difficult time finding a replacement.
Btw - I am looking at Canadian policies but they are virtually identical to US policies on the ACV clause..
So what's an owner with a high-mileage but excellent condition car to do when it comes to insurance?
What I understood that actual cash value (ACV) means is that it is upto the sole discretion of the insurance company to establish the worth of the vehicle in the event of a claim. They can establish is regardless of what you told them or think it's worth. So for example, someone like myself with a highly maintained, original (except for Depo headlights and AMG monoblocks), never damaged, full maintenance history but high-mileage 300CE will have a hard time proving it is worth more than $4 - 5k. And having driven other models in the same price range, none are in similarly good condition so I would have a very difficult time finding a replacement.
Btw - I am looking at Canadian policies but they are virtually identical to US policies on the ACV clause..
So what's an owner with a high-mileage but excellent condition car to do when it comes to insurance?
10-05-2009, 04:10 PM
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Mercedes
You could get 10k insurance on a 1k car, but you are going to pay $$$ for it.
It comes down to how much you are willing to pay for a certain level of coverage.
It comes down to how much you are willing to pay for a certain level of coverage.
10-06-2009, 08:23 AM
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88-300CE TWIN TURBO, 99-C43, 05-G55K, 71-280SL, 94-E320 CAB, 08 CLK63 BLACK SERIES
Not sure I understood what you meant by you buy the amount of insurance coverage you want and pay for it? I thought that the insurance agency will ask for the current market value of your vehicle, and if it is used, how much you bought it for. Otherwise, I could buy a $1k car and get insurance for any amount, like $10k? I'm sure I mis-understood....
What I understood that actual cash value (ACV) means is that it is upto the sole discretion of the insurance company to establish the worth of the vehicle in the event of a claim. They can establish is regardless of what you told them or think it's worth. So for example, someone like myself with a highly maintained, original (except for Depo headlights and AMG monoblocks), never damaged, full maintenance history but high-mileage 300CE will have a hard time proving it is worth more than $4 - 5k. And having driven other models in the same price range, none are in similarly good condition so I would have a very difficult time finding a replacement.
Btw - I am looking at Canadian policies but they are virtually identical to US policies on the ACV clause..
So what's an owner with a high-mileage but excellent condition car to do when it comes to insurance?
What I understood that actual cash value (ACV) means is that it is upto the sole discretion of the insurance company to establish the worth of the vehicle in the event of a claim. They can establish is regardless of what you told them or think it's worth. So for example, someone like myself with a highly maintained, original (except for Depo headlights and AMG monoblocks), never damaged, full maintenance history but high-mileage 300CE will have a hard time proving it is worth more than $4 - 5k. And having driven other models in the same price range, none are in similarly good condition so I would have a very difficult time finding a replacement.
Btw - I am looking at Canadian policies but they are virtually identical to US policies on the ACV clause..
So what's an owner with a high-mileage but excellent condition car to do when it comes to insurance?
If accepted you pay the rate per $100 or $1000 for the "agreed upon value"
My 300CE is insured and underwritten for $35K.
Has nothing to do with "market value" more what it would cost to repair or replace.
10-06-2009, 04:30 PM
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When you purchase "collector" insurance the car owner establishes the value of the vehicle. Details and pix are sent to the insurer and the decision is made to underwrite or refuse the policy offer.
If accepted you pay the rate per $100 or $1000 for the "agreed upon value"
My 300CE is insured and underwritten for $35K.
Has nothing to do with "market value" more what it would cost to repair or replace.
If accepted you pay the rate per $100 or $1000 for the "agreed upon value"
My 300CE is insured and underwritten for $35K.
Has nothing to do with "market value" more what it would cost to repair or replace.
is your insurance a regular type of insurance or with a collector's type agency that specialize in high-end and modified cars?
10-08-2009, 06:53 PM
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1989 300ce
"collector" insurance has restrictions as to where the car is kept and can not be a normal driver, plus they need documentation and pixs ~~ my agent suggested a classic car appraiser and then agree on $$$ value
just settled about a month ago with my insurance company ~~~ field adjuster wrote $4800 (wanted to keep it under 5k and used 3 used parts @$300 each to get under) damage to my 1989 300ce because of a vandalized interior, that was over the threshold which i found out was @75% of value, TOTALED
~~~ the fight was on for car's value ~ 1st company adjuster was $4200 and after a week and the field adjuster's 2c got it raised to $5225 due to condition and 89k ~~~ STILL TOTALED
what TOTALED means ~~~ value of car $5250 less $100 deductible = check for $5125, go find another car
or $5250 less $100 less $675 (to buy car back) = $4475 and now a salvage title
or ~~ was able to to have a shop repair it for an estimated $3300 less $100, they sent me a check and i was done, still a clean title
~~~ if you let them total your car ~~ then you go to the BMV and have your title converted to a salvage title, send that title and keys to the insurance company and then your title, keys and check are sent back to you ~~~ next you have to make an appointment with the state patrol to have it inspected (the next available appt was a month away and you can't drive a car with a salvage title on the street) for $55 ~~~ then back to the BMV again to have the title converted to a rebuilt salvage title, and there you have it, what's it's resale value now?
just settled about a month ago with my insurance company ~~~ field adjuster wrote $4800 (wanted to keep it under 5k and used 3 used parts @$300 each to get under) damage to my 1989 300ce because of a vandalized interior, that was over the threshold which i found out was @75% of value, TOTALED
~~~ the fight was on for car's value ~ 1st company adjuster was $4200 and after a week and the field adjuster's 2c got it raised to $5225 due to condition and 89k ~~~ STILL TOTALED
what TOTALED means ~~~ value of car $5250 less $100 deductible = check for $5125, go find another car
or $5250 less $100 less $675 (to buy car back) = $4475 and now a salvage title
or ~~ was able to to have a shop repair it for an estimated $3300 less $100, they sent me a check and i was done, still a clean title
~~~ if you let them total your car ~~ then you go to the BMV and have your title converted to a salvage title, send that title and keys to the insurance company and then your title, keys and check are sent back to you ~~~ next you have to make an appointment with the state patrol to have it inspected (the next available appt was a month away and you can't drive a car with a salvage title on the street) for $55 ~~~ then back to the BMV again to have the title converted to a rebuilt salvage title, and there you have it, what's it's resale value now?
