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Insurance questions


ShelbyPilot

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The discussion about title led to insurance topics. Instead of hijacking that thread I bring some questions to a new thread. Any advice is appreciated.

 

How do the insurance companies handle the Saleen & Roush special edition Mustangs?

Does the consideration take place in the underwriting at the begining or in the, God forbid, claim process?

I assume I may have to educate them, like I did most dealers, about the car?

How are my options (supercharger, hood, brakes) handled?

I assume a policy for a 470HP supercharged car will have a high premium then a 319HP car?

....but, again God forbid, will the claim process consider those options?

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Saleen is easy as they issue MSO. Therefore NADA recognizes them as a manufacturer and tracks their values in the market. If you own a Saleen, it should be insured as a Saleen and not a Ford Mustang.

 

Roush, like the current Shelby, do not issue MSO. Their value will not be tracked by NADA. To properly insure these vehicles, you need to let your agent know what you have. It is going to cost you more. That should not bother you if you are trying to protect your investment.

 

robin

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As far as insurance I checked with my agent this week to see what the rate would be when my car arrives. They quoted me the standard Mustang GT rate. They did not have a listing for the SGT, but did have a listing for the GT500. I would be prepared to do battle if a claim was filed for a stolen or totaled SGT, again it probably would depend on the relationship you had with you agent, and your ability to document your cars value.

 

I have insured my Saleen and also my Bullitt in the past with my collector car insurance company ( Grundy) without any problem. The rate was more than the older cars but still less than my local insurance company. The only catch was the restricted use that those cars then fell into. For me it was not a problem because they were not every day drivers, and one plus is that the value was agreed upon up front so I knew what to expect should a claim arise.

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I also checked with my insurance agent (State Farm) and they told me when I get my SGT they would insure it like a regular Mustang GT. I explained that it was a limited production car and worth more money, but they had no provisions for anything outside the ordinary Ford vehicles list. I check with a collector car insurance (Haggerty) but they have usage restriction as well as storage requirements that I could not meet. If anyone has a solution, please advise...By the way I'm located in Miami, FL.

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I also checked with my insurance agent (State Farm) and they told me when I get my SGT they would insure it like a regular Mustang GT. I explained that it was a limited production car and worth more money, but they had no provisions for anything outside the ordinary Ford vehicles list. I check with a collector car insurance (Haggerty) but they have usage restriction as well as storage requirements that I could not meet. If anyone has a solution, please advise...By the way I'm located in Miami, FL.

 

Here's what I've done in the past with "specialty" or limited production vehicles: pay an appraiser to come and look over your car (as soon as you get it) and he will make an adjustment to the regular value of a Mustang GT. You take this appraisal to your insurance company and they add the value on to your policy. They'll probably charge you a higher premium, but may be worth it in the end should anything happen to the car in the way of theft, collision, or accident, etc. But make sure you do this as soon as you can when you get the car, as people have the tendancy to let it go and "do it later". Make sure to check with your insurance company first to verify which appraisers they deem qualified to make the appraisal. Good luck.

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Here's what I've done in the past with "specialty" or limited production vehicles: pay an appraiser to come and look over your car (as soon as you get it) and he will make an adjustment to the regular value of a Mustang GT. You take this appraisal to your insurance company and they add the value on to your policy. They'll probably charge you a higher premium, but may be worth it in the end should anything happen to the car in the way of theft, collision, or accident, etc. But make sure you do this as soon as you can when you get the car, as people have the tendancy to let it go and "do it later". Make sure to check with your insurance company first to verify which appraisers they deem qualified to make the appraisal. Good luck.

 

Thanks for that, seems like a great idea to me. We will definately look into this for our SGT

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.....your point may be literally true. However it is not in practicallity. God forbid any of our cars were destroyed. Having an insurance policy that covers your car as a standard GT will fall far short in its claim for the value of the car and make it hard to replace the car. Despite how you may personally feel about the car you are buying, most of us believe these cars are worth more than a standard GT with some options and will hold their value better. If you read around some dealers are actually asking for a higher ADM on the Shelby GT than on the GT500 and used GT500s are still selling with $20K mark ups. I don't care about resale value but I do care about replacing my car if anything happens to it.

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The specialty insurance company required the vehicle be kept in a garage or storage building that could be locked and secured with limited access. It also limited the milage you can put on the car...I'm not sure, but I think it was like less than 1000 miles a year or something like that. The milage wasn't a prblem for me as I'm only going to use my SGT as a track car, but I don't have a garage to put it in. I'm loking for a possible public storage facility or something of the sort. By the way, to respond to dmag57, if you don't insure the SGT properly and you have a claim, the insurance will only pay the value for a standard Mustang GT. It will be a substantial loss financially for most SGT buyers! I think SGT's will be worth more than the GT500s in the future as they are a limited production run!

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Be sure to check with the company (Grundy, Hagerty, etc.) and confirm your location. I have Hagerty on my 1968 fastback, but they won't insure cars in NC that are newer than 1997, though they would if I lived in a number of other states. Grundy will insure an SGT in NC, but limit the mileage and WILL NOT respect a claim that arose during a drive in to work but only cover pleasure/club outings (heaven forbid that I take pleasure in driving my car to work once or twice a month on a nice, sunny day...).

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.....I called Grundy. Their policy will not work for me. There are no mileage restrictions and I will be parking my car in a garage. However, I can't enjoy my car with their driving restrictions. I understand not driving to work but they said the car wouldn't be covered if I drove to church, the mall or even a weekend trip. My impression was the car would only be covered to and from car related events (shows,rallies, etc.). Also, I inferred from the operator that my primary car had to be newer than my Shelby GT.

 

Next, I called my current insurer, State farm. I had to explain that my car was not a GT500, the build process for the Shelby GT, and the current market state of ADMs. She was surprised by the T82 (mustang body code) in the VIN. She is calling their underwriters to answer my questions.

 

I don't mind paying a reasonable premium. I just want to make sure my car is sufficiently covered.

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Try checking with an independent insurance who has access to multiple companies to choose from. There are at least 3 types of valuation (the value used to pay a claim) for a total loss.

 

Most of us have ACV ("actual cash value"). This is a method involving a depreciated value.

 

Replacement Cost is another. I have this one for a 2000 Expedition with 154k miles. If totalled, here comes a new '07 Expedition!

 

Agreed Value is how I am insuring my SGT. This means that the insurance company and I have "agreed" that the value is $XX,XXX. I did have to show the sales contract to prove it. If totalled (racing is an exclusion!!!!!!!!), they would get another for me. I don't think availability of another SGT is a problem for now, but I am wondering about the next year or two. I may have to settle for cash.

 

Insurance companies don't give anything away..... the more coverage, the bigger the $$$$$

 

Talk to a professional.

 

RJ

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Try checking with an independent insurance who has access to multiple companies to choose from. There are at least 3 types of valuation (the value used to pay a claim) for a total loss.

 

Most of us have ACV ("actual cash value"). This is a method involving a depreciated value.

 

Replacement Cost is another. I have this one for a 2000 Expedition with 154k miles. If totalled, here comes a new '07 Expedition!

 

Agreed Value is how I am insuring my SGT. This means that the insurance company and I have "agreed" that the value is $XX,XXX. I did have to show the sales contract to prove it. If totalled (racing is an exclusion!!!!!!!!), they would get another for me. I don't think availability of another SGT is a problem for now, but I am wondering about the next year or two. I may have to settle for cash.

 

Insurance companies don't give anything away..... the more coverage, the bigger the $$$$$

 

Talk to a professional.

 

RJ

 

 

 

 

 

"Replacement Cost is another. I have this one for a 2000 Expedition with 154k miles. If totalled, here comes a new '07 Expedition!"

 

Are you sure about that? Replacement cost isn't based on what a new vehicle would cost. It is based on what it would cost to buy another vehicle of the same year and simular miles. We get calls all the time from insurance companies that are trying to find vehicles for people whose vehicles were totalled. They are looking for same year or slightly newer with same options or more and same model to replace the vehicle that was totaled. You might want to double check on that. I just don't see an insurance company paying out $45k - $50k for a 2000 with over a 150k miles that is worth about $5k. If it were that easy everyone would be driving their old vehicles over a cliff just to get a brand new one!

 

How much does that policy cost for the Expedition??? I can't even see any insurance company writing such a policy where they will replace a $5k vehicle with a new $45k - $50k vehicle.

 

What company is this? I got some vehicles I could insure just to get some new ones! ;)

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S.Dude, what you described by someone calling you to find a car to replace "like kind", you are actually talking about ACV (actual cash value). This is the most typical valuation on policies and really hurts someone that takes good care of their cars. Imagine owning a 10 year old car with 10,000 miles, wrecking it and getting $2000 or $3000.

 

Policies and insurance companies vary from state to state. I'm in Florida (we have our own issues!), but the insurance company I have is through Chubb. Chubb may not be available in your state. Again, it is more coverage and more expensive.

 

I found that there were more options available than leaving my SGT in a garage and being limited to low mileage (even though the Expedition gets the miles!!!).

 

R.J.

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Well here is what my State Farm agent just told me:

 

Since there is no difference in the VIN; they would insure the car as a Mustang GT and then pay 100% for modifications based on the receipts. They include the Shelby package as a modification.

 

I see positives and negatives:

 

God forbid my car is totaled, the adjusted value of a Mustang GT will fall short of the replacement costs of a Shelby GT, especially if I have to pay an ADM or if the cars don't depreciate. The Shelby GTs are certainly not going to depreciate like a Mustang GT.

 

On the positive they will pay 100% for the supercharger, brakes, wheels, CS hood and everything else. Also the premium seemed much lower than I expected.

 

I will have to crunch the numbers and check in with Allstate and their vehilce replacement program. Stay tuned......

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Well here is what my State Farm agent just told me:

 

Since there is no difference in the VIN; they would insure the car as a Mustang GT and then pay 100% for modifications based on the receipts. They include the Shelby package as a modification.

 

I see positives and negatives:

 

God forbid my car is totaled, the adjusted value of a Mustang GT will fall short of the replacement costs of a Shelby GT, especially if I have to pay an ADM or if the cars don't depreciate. The Shelby GTs are certainly not going to depreciate like a Mustang GT.

 

On the positive they will pay 100% for the supercharger, brakes, wheels, CS hood and everything else. Also the premium seemed much lower than I expected.

 

I will have to crunch the numbers and check in with Allstate and their vehilce replacement program. Stay tuned......

 

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Socal, glad you are checking it out. Most of us don't think about issues like these until a claim needs to be made. State Farm and Allstate are similar (they would beg to differ) in that they are direct writers. Basically, that is their only product line. There are exceptions within those companies.

 

An agency or broker will have access to other companies you've seen advertised, like Travelers, Hartford, Fireman's Fund, etc.

 

The important thing is that you're checking out the options! (S/C, 20", black, white, 5 speed..............=).

 

R.J.

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I pay $410/yr. to insure my SGT with full coverage and a $1000 deductible collision. I had specialty insurance on a Ferrari and it was epensive and required annual certified appraisals (auction reports such as ebay are meaningless) and there were limitations on driving the vehicle. I am sure that if something were to happen to my SGT, my insurance company would do me right by it. A friend has an original Alfa 8C and he cannot afford to insure it (other than basic liability)but he drives it every week regardless.

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All righty, here's what I got from Allstate. They do have the Shelby GT in their system. There was a little bit of question about that but when they put my VIN in it showed as a Shelby GT. So it would be insured that way. However, The operator on the toll free number said modifications would have to go through an agent. Also, they don't offer the "new car replacement" option in California. I was really hoping for that because I thought it would cover me if the Shelby GTs dont depreciate.

 

Also, stopped by my AAA office. They didn't have the Shelby GT in their system. The VIN came up as a Mustang GT. The modifications would have to be reviewed by an underwriter. AAA and Allstate were both much higher than State Farm.

 

I called my State Farm agent back to verify the upfitter portion, Shelby package and all modifications would be covered at 100%. She said yes and including installation charges. I am a little wary but looking at the upfitter cost ($2140), Shelby Package ($7390), Wheels ($4300), and what I am expecting pay roughly $12K to Shelby, I think that may be the way to go. Fortunately, I still have time to think about it.

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Socal - it sounds like your State Farm agent is on top of it.

 

What needs to be done to properly insure the car is not unlike what is done for conversion vans. The basic vehicle is insured and then you declare the modifications for additional coverage.

 

Not much you can do about depreciation. All new vehicles depreciate.

 

robin

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  • 2 weeks later...

Greetings:

 

I have just purchased my Shelby GT. I have read all the posts concerning replacement vs. agreed value. I contacted an Independent Agent and here is the skinny.

 

With Acuity Insurance, they will write a normal policy with an extra Replacement Encrsement. They quoted the Replacement Policy Endorsement would cover complete repair with new parts per the upgrades. They also would place a value on what it would take to replace the car in total if stolen or total loss. They also said having an appraisal done would be the barometer used to set a value. For that, the total would be $1078 per year with unlimited mileage or use restrictions.

 

I would appreciate any thoughts...

 

Jeff

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you can just use the shelby upgrade as aftermarket as well, just like you would for rims, or anything else in the event of a theft or total loss, why pay more when then end result is the same. Replacement is replacement, usually includes add ons...when you get insurance they ususaly have a questionaire and you can then add the shelby upgrades for an additional 8300.00 on top of the mustang price with the upfitters package

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Michael,

 

Did you nail down insurance yet?......I have been dreading it......any suggestions?

 

 

i have state farm they insured as mustang gt, she confimred with an underwriter they do not upcharge the premium for upgrades to the car, so she listed everything extra, shelby package, stereo etc and what i paid for them.

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i have state farm they insured as mustang gt, she confimred with an underwriter they do not upcharge the premium for upgrades to the car, so she listed everything extra, shelby package, stereo etc and what i paid for them.

 

 

To all: I was able to go through my Independent agent and get written by Hagerty. They know what the car is but it took a little persuading to get them to write me because I do not own a 2006 or newer vehicle other than the Shelby. I think too because the production numbers are above 3000. I insured it for $43k stated value for replacement cost; $250 Comp., $500 Collision deductibles. Liability limits of $500k for $1,000 per year. It will be insured as an exotic. A little pricey but it's what you're willing to risk.

 

Exotic vehicles stand on their own as collectible cars because of their

extremely limited production. By this we mean the car itself is the major

factor in determining if it is collectible, and therefore insurable. Hagerty

defines exotic cars as models 1987 & newer that have production numbers of

less than 3,000 per year.

 

Guidelines for Writing Exotic Vehicles:

 

* Annual mileage should not exceed 3,500 miles per year

 

* Vehicle's minimum insured value must be $40,000

 

* Regular use cars must be in excellent condition and less than three

years old (this can be bypassed with exception ms)

 

* Odometer reading should not be excessive in relationship to the

years owned or age of the vehicle

 

* We can not write Exotic vehicles in Massachusetts and North Carolina

 

IASHELBY

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  • 3 weeks later...

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