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11-30-2021, 05:33 PM | #1 |
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Naive Auto Insurance Question
Lets say I have a 2013 Comp M3 with low miles in pristine condition. It isnt low enough to consider it a collectible, but it has under 40k miles. I am the original owner, drive it 5x a year, keep it in a garage the rest of the time. And lets say I mod the absolute shit out of it (custom x pipe, cat delete, exhaust, supercharge it, CF intake, etc.), and throw roughly $25k into the vehicle.
So now in my eyes, assume I view my car as worth say $75,000. However, I recently call my insurance company and they state that based on their information on the vehicle, had it gotten in an accident tomorrow, they would consider it totaled if the repairs reached a sum of over $40,000. How do I go about getting it insured at a valuation of $75k? I know I will have to pay a higher monthly fee, but what do I ask my insurance company for when I call them? |
11-30-2021, 05:39 PM | #2 | |
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11-30-2021, 05:52 PM | #4 |
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Call Hagerty and get an agreed upon value policy. As long as it's not your daily and it's garaged.
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11-30-2021, 05:54 PM | #5 |
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^This. I have Hagerty insurance on my M3 as well.
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11-30-2021, 05:56 PM | #6 | |
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11-30-2021, 06:07 PM | #7 |
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Well that would contradict on 5xs a year. These policies like Hagerty are going to hold you to the mileage requirement. From my research you would jeopardize coverage and have a claim denied if you stated you would only put 1k a year on it and then show 10k in the unfortunate event of getting into an accident.
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11-30-2021, 06:15 PM | #8 |
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+1 reach out to talk to them about stated value of what they consider your car is worth.
From what you described (and if you have a garage) Hagerty Classic Car insurance might be a good option. If you're in California, Tyce Michael Fields is an excellent agent who insures my cars at Farmers, and the M3 at Hagerty (represents both insurance companies), |
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11-30-2021, 07:28 PM | #9 |
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When I bought my car I had our agent quote Hagerty as well. It was about the same cost as just adding it to our MetLife policy.
The benefit with Hagerty was insuring with a higher (non-depreciating) value of $45K. The negatives were no premium payment options (I just bought the damn car using extra funds) AND a mileage limitation. While I didn't think the mileage issue would matter, I ended up putting 6K on in the first year. . . Who knew the PNW had so many nice driving days 😆
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11-30-2021, 08:41 PM | #10 |
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+1 for Hagerty as well. Never had to file a claim so can't speak to that part of it, but they have good customer service and the rates are quite reasonable for high-value, low-use vehicles.
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12-01-2021, 06:18 AM | #13 |
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No offense but don't insurance companies insure your car based on historical facts and not feelings? Why would they insure your car for more than what it's worth? Am I kissing something?
This seems like one more thing that screws over the little guys and ultimately ends up hiking up other peoples premiums. |
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12-01-2021, 06:25 AM | #14 | |
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I would not bet on what might survive when calculating the amount of insurance coverage I need on my car. Rather I want to have the amount it would cost to replace it as is.
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12-01-2021, 06:33 AM | #15 | |
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12-01-2021, 07:32 AM | #16 | ||
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This guys car is worth $40k and they agree to insure it for $75k. It's a gamble for the insurance company. He pays a slightly higher premium but nothing to crazy because they don't want to scare him off. If he wrecks the car, the insurance company isn't gonna dip into the account that was built on his premiums, they dip into the community pool and the community pool shows that 36% of the active policies are risky. Who will be the ones to balance the risk vs reward? The majority, who hold policies for the actual value of their cars or the minority, whose policies are risks? Majority always loses. It's much easier to raise the majorities rates little by little then have him pay overvalued premiums on his car. I refer to little guys as in average policy holders. When I moved to Florida from the north my insurance more than doubled. I asked why and was told a few alarming things. Mostly it's because of the uninsured divers and insurance scammers but I was also told, off the record that my "regular" policies for cars, boat and motorcycle help offset the higher end one off policies. The insurance company isn't gonna make money off this guys individual policy, they're gonna make money on the policies they use to offset the risk. At the end of the day insurance is one of the biggest scams we're forced to endure to include medical as well. |
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12-03-2021, 12:37 AM | #17 |
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Funny you had this thought. I'm in this exact situation, the car was 2013 with 40,300 kms. I was rear ended badly in traffic, wasn't even moving when it happened. Driver at fault didn't even apologize and was hiding in his car avoiding confrontation. Car had probably all the mods you mentioned CF intake, exhaust, x pipe, coilovers. I spent around 25k on the car, mostly everything was DIY. For all the money you spent on mods, be prepared for that not to be covered. On top of that I am constantly arguing with insurance for the proper value of my vehicle. For them it's just a car but to us, it's way more than that. The last naturally aspirated M3. It's hard to not take the low offers as an insult but it's totally understandable since a regular car did not appreciate like ours. I'm still in the process and it's been a month now of back and forth. I'm not sure how it works in the states but in Canada, the only way to get market value for your vehicle is by going through an appraisal process. You'll have to find an appraiser and so will the insurance company. Both appraisers are supposed to come to a final price. There's more to the process after that if you don't want to settle but I haven't gotten that far yet. Just hope it never happens.
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12-03-2021, 10:17 AM | #19 |
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This is one of the reasons that I want to,
1. buy a Ferrari 2. only put $1 down 3. buy gap insurance 4. smash up said ferrari beyond all recognition (by accident of course) 5. alert said insurance company of total loss Ferrari. 6. Have insurance pay out $400,000 7. ???? 8. No profit for insurance company I figure that would be the only way to make me and insurance "even" by the time I die. |
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12-03-2021, 11:02 AM | #20 | ||
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+1 for Hagerty. If your M3 isn't your daily, call them ASAP to try to get your car appropriately covered.
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Also, the reason we all get insurance is because 99% of the population can't afford to cover the costs of a collision out-of-pocket. Basic car insurance is to protect against catastrophic loss. I pay a hell of a lot more than most to make sure my cars are fully covered and that my liability is covered. Of all the scams we endure in life, auto insurance is not one of them. The upper-middle class ($100k-$400k income) paying more proportional taxes than someone who earns $30mil is a scam. I'll leave health insurance alone |
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12-03-2021, 11:16 AM | #21 |
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Receipts are key to being reimbursed for any aftermarket parts, I had a 2002 Audi S4 that I easily spent over $20,000 and had All my receipts for my parts, at the time my car was T-bone by another driver who ran the light during a winter storm. In short, my car was Totaled back in 2007 and had approximately 77,000 miles and The insurance company only offered me a payout of only 15,000. However, after I called my adjuster and provided proof of receipt for the parts, I received an additional $17,000.00 for my wheels and K04 Turbos which came to a total of $32,000.00. Another option, if you want to be proactive is to contact your insurance agent and update them with itemize aftermarket receipts so they have it on record. Ultimately, you will get some money back at least recoup 65% of your cost on aftermarket parts. Better than a total lost and getting zero amount. FYI, a lot of insurance company has Policy CAPS limits of 100,000 or less on property damage. Unless it is your own policy. IMO
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