trichie Posted October 9, 2007 Report Share Posted October 9, 2007 I just got off the phone with my insurance company (Hartford) regarding replacement value of the Shelby. It seems that most common insurance companies pay ACV or Actual Cash Value. So I asked them, what is that and they said "what the vehicle is worth prior to the accident". So I said what is that and they said" the blue book value and what condition the vehicle was in prior to the accident". So I looked up on NADA what our vehicles are worth and NADA said N/A, not enough data available. So then I looked on Kelly Blue Book and it came back $66,500 for a 2 door coupe. I paid about $55,000 for mine so naturally I was delighted. So then I called my insurance company back and asked them what they would pay if I totaled the car tomorrow. He was reluctant and gave me this big run around about what the vehicle is worth, blah, blah, blah. I then told him that the vehicle is rare and very hard to get a new one. He suggested that I get an appraisal and I said what good would that do. Then he put me on hold and finally came back and said that they consider the vehicle worth between 70 and 80 thousand dollars! So I said, well why didn't you say that in the first place, is that what you would pay if I totaled it tomorrow? and he said yes. I know that companies like Grundy offer a pre-agreed upon value and I called them for a quote. They gave me a quote of $808 per year for a $55,000 replacement value. But I live in Alaska and I don't drive the car in the winter. They don't offer just comprehensive for non driving times so that isn't a good deal for me. My company charges me about $546 per year, with only 6-months full coverage during the time I drive it and just comprehensive fire and theft for the 6-months I don't drive it. So, that is a better deal for me. I just wanted to pass this on to you all. You might want to check with your insurance company and try to find out exactly what they will pay if you total it. Link to comment Share on other sites More sharing options...
ShelbyDude Posted October 9, 2007 Report Share Posted October 9, 2007 Mine will pay market value based on current selling prices for our area. That may be a bit hard to determine though, but being in the business I am not not worried because I can easily establish what market value is. We get calls all the time from insurance companies asking us what the market value is on vehicles. Mostly from State Farm. I don't know why they are always calling dealerships to determine values. They have the same access to the same book values that everyone else uses. Maybe they keep hoping they can find sources to tell them the book values are off and it is worth a lot less or something. Link to comment Share on other sites More sharing options...
ingram4868 Posted October 9, 2007 Report Share Posted October 9, 2007 I have SAFECO and they offer full replacement cost coverage for new cars. It cost me an additional $30.00 p/month. Link to comment Share on other sites More sharing options...
cknight Posted October 9, 2007 Report Share Posted October 9, 2007 Insurance is my business. There are two ways you can purchase auto insurance. All of the main street companies( Safeco, State Farm. Allstate, ect) sell a replacement policy and your speciality companies( Hagerty, Grundy, ect) sell a stated amount policy. The replacment policies should research your area, find out how much they can replace you car for and than settle for you with that amount less your deductable. The stated amount policies will never pay you more than the stated amount of your policy. In theroy, if you paid 55,000 for your car and today it would take 65,000 to find a replacment, than you should get 65,000. This is not normal for the mainstreet companies, and some will find it hard to write checks for 65,000, however, if you press hard you should get it if in fact that is what it would cost to replace the car. Link to comment Share on other sites More sharing options...
Grabber Posted October 9, 2007 Report Share Posted October 9, 2007 I will get Market value, and since I know Shelbydude I am not worried because he can help me determine market value for my area. :D Link to comment Share on other sites More sharing options...
red07shelby Posted October 9, 2007 Report Share Posted October 9, 2007 I have Haggerty and have an agreed value of $60,000 thats what I would get. Link to comment Share on other sites More sharing options...
GT500 Posted October 9, 2007 Report Share Posted October 9, 2007 I just got off the phone with my insurance company (Hartford) regarding replacement value of the Shelby. It seems that most common insurance companies pay ACV or Actual Cash Value. So I asked them, what is that and they said "what the vehicle is worth prior to the accident". So I said what is that and they said" the blue book value and what condition the vehicle was in prior to the accident". So I looked up on NADA what our vehicles are worth and NADA said N/A, not enough data available. So then I looked on Kelly Blue Book and it came back $66,500 for a 2 door coupe. I paid about $55,000 for mine so naturally I was delighted. So then I called my insurance company back and asked them what they would pay if I totaled the car tomorrow. He was reluctant and gave me this big run around about what the vehicle is worth, blah, blah, blah. I then told him that the vehicle is rare and very hard to get a new one. He suggested that I get an appraisal and I said what good would that do. Then he put me on hold and finally came back and said that they consider the vehicle worth between 70 and 80 thousand dollars! So I said, well why didn't you say that in the first place, is that what you would pay if I totaled it tomorrow? and he said yes. I know that companies like Grundy offer a pre-agreed upon value and I called them for a quote. They gave me a quote of $808 per year for a $55,000 replacement value. But I live in Alaska and I don't drive the car in the winter. They don't offer just comprehensive for non driving times so that isn't a good deal for me. My company charges me about $546 per year, with only 6-months full coverage during the time I drive it and just comprehensive fire and theft for the 6-months I don't drive it. So, that is a better deal for me. I just wanted to pass this on to you all. You might want to check with your insurance company and try to find out exactly what they will pay if you total it. $75,000 if stolen or wrecked in the next 4 years. Link to comment Share on other sites More sharing options...
ColdwaterHotrod Posted October 9, 2007 Report Share Posted October 9, 2007 I get replacement value (what it actually cost to replace one from a dealer) with State Farm Link to comment Share on other sites More sharing options...
ShelbyDude Posted October 9, 2007 Report Share Posted October 9, 2007 I will get Market value, and since I know Shelbydude I am not worried because he can help me determine market value for my area. :D Bickford can do better in your area. They can establish above market value in your area! Link to comment Share on other sites More sharing options...
ShelbyDude Posted October 9, 2007 Report Share Posted October 9, 2007 Insurance is my business. There are two ways you can purchase auto insurance. All of the main street companies( Safeco, State Farm. Allstate, ect) sell a replacement policy and your speciality companies( Hagerty, Grundy, ect) sell a stated amount policy. The replacment policies should research your area, find out how much they can replace you car for and than settle for you with that amount less your deductable. The stated amount policies will never pay you more than the stated amount of your policy. In theroy, if you paid 55,000 for your car and today it would take 65,000 to find a replacment, than you should get 65,000. This is not normal for the mainstreet companies, and some will find it hard to write checks for 65,000, however, if you press hard you should get it if in fact that is what it would cost to replace the car. That is what mine is. Replacement value based on current replacement cost in our area. So if the insurance company was to say they determine the car is worth $40K but in reality it would cost $60K to replace it by getting another one from a dealer, the simple solution to resolve this with the insurance company is to just tell them to go buy one then and replace it! If they could replace it by finding one $40K then who cares. As long as I get it replaced it wouldn't matter to me! Link to comment Share on other sites More sharing options...
Big_Slick737 Posted October 10, 2007 Report Share Posted October 10, 2007 That is what mine is. Replacement value based on current replacement cost in our area. So if the insurance company was to say they determine the car is worth $40K but in reality it would cost $60K to replace it by getting another one from a dealer, the simple solution to resolve this with the insurance company is to just tell them to go buy one then and replace it! If they could replace it by finding one $40K then who cares. As long as I get it replaced it wouldn't matter to me! I am about to start getting my insurance lined up so Ill let everyone know what I end up with when I do. Here is an interesting thought though. What If.... they do not make any 09's and all the dealers have sold every Unit of 07's and 08's and then your car get totalled. Hmmmmmm That will make it hard to find a replacement. I hope none of us have to ever find out :happy feet: Link to comment Share on other sites More sharing options...
ShelbyDude Posted October 10, 2007 Report Share Posted October 10, 2007 I am about to start getting my insurance lined up so Ill let everyone know what I end up with when I do. Here is an interesting thought though. What If.... they do not make any 09's and all the dealers have sold every Unit of 07's and 08's and then your car get totalled. Hmmmmmm That will make it hard to find a replacement. I hope none of us have to ever find out :happy feet: I am sure there will always be someone selling their Shelby, so getting one wouldn't be a problem. Of course, if they are not making more and you can't buy a new one, then replacement values could skyrocket if the ones that are for sale start asking for big money. Link to comment Share on other sites More sharing options...
cknight Posted October 10, 2007 Report Share Posted October 10, 2007 ShelbyDude, you are correct! The insurance company is required to do one of two things. Replace your car with one of like kind and quality or pay you for what it would have cost them to replace it. They usually always pay instead of replacing, its much cleaner. That does not mean replacing a 07 with an 08 or 09, they must replace with an 07 or the value of an 07 Link to comment Share on other sites More sharing options...
jrichard Posted October 10, 2007 Report Share Posted October 10, 2007 cknight knows what he's talking about. Replacement value = depreciated value. At the end of the day, most insurance companies will settle on actual cash value (as opposed to replacing the vehicle). It makes no sense for an insurance company to actually locate and purchase a replacement vehicle. ACV is determined by the insurance company. If you don't like their determination, feel free to appeal/arbitrate/litigate per the terms of your contract. So, if all the dealers are sold out or if there are no 09s made, that doesn't impact the insurance company at all. And if your car is worth (used) more than you paid, that doesn't impact the analysis, either. Whether you paid MSRP or $50k adm doesn't make a difference in terms of the settlement you will receive. I've been through this on a car that was stolen when it was two weeks old. When I offered the insurance representative a copy of my receipt for the car and said I'm happy to take my cost less $1000 or so since it'll be hard to figure ACV on a two week old car, he declined and said they would survey the market and determine ACV and that my cost was irrelevant. I ended up with a check for $3000 more than I paid for the vehicle. Obviously, you should read your policy to make sure you have the coverage you want...it's all laid out in pretty clear language Link to comment Share on other sites More sharing options...
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