Determining agreed upon value for insurance - JeepForum.com
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post #1 of 18 Old 07-28-2020, 09:20 PM Thread Starter
Horatio
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1980 CJ7 
 
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Determining agreed upon value for insurance

Gents and ladies,

I'm getting ready to place insurance on my new jeep. My regular policy through USAA will not write a policy for a "classic" vehicle in an amount sufficient to cover its collectible value. I've been referred to their partner, American Collectors Insurance, and am waiting to hear back from a sales rep.

How have y'all determined your agreed upon values? Should I only be looking for replacement of my expense? How could I determine the value of my CJ7 otherwise?

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post #2 of 18 Old 07-28-2020, 11:53 PM
Fourtrail
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There are 3 numbers to look at, sale price, appraisal value and replacement value. I would get it appraised and then go fo a value between appraisal and replacement. Provide as much documentation as possible to get a good appraisal on what looks like a very clean survivor. Then send that along with your stated value of the amount you would want if something would happen to the ins co and see what they say.

80 CJ-5, 74 CJ-6, 56 CJ-5
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post #3 of 18 Old 07-29-2020, 05:55 AM
ADDZ71
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I insured through Hagerty's and I only gave them a value that I thought was the potential replacement cost ($15,000). I don't remember having even submitted pictures. I am sure if I had to file for a loss that I would have to show pictures or have an inspection. I think if an appraisal was done by someone with Jeep knowledge my Jeep would appraise between $12-15K. I pay ~$300 per year for the insurance with very little if any restrictions (I think it has to be garaged which it is and probably not driven as a daily driver).
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post #4 of 18 Old 07-29-2020, 06:32 AM
bob4703
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Nice Jeep!

In that you recently bought it use the purchase price for a starting point. You need to insure it for what it would cost to replace it. I live in a state that has high insurance rates and with my last increase in insured value the annual bill is now a little over $200 and that is full coverage and zero deductible. I use Hagerty https://www.hagerty.com/ . They have a valuation guide and will give you a quote online.
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-----

Paved roads are prime examples of government over spending!
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post #5 of 18 Old 07-29-2020, 07:47 AM
cglax6
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I switched to American Collectors from USAA back in Jan20. You can give them just about any number you want. I have an appraisal on mine that was done in 2017. I gave them a number a little higher based on what I've done to it since then. I also gave them my list of new parts that I've installed with copies of receipts. They'll tell you to send 2-4 pictures, but I would send them a few dozen.

Shortly after I signed up with them, my frame cracked open where the driver's side rear shackle bolts in. At first, the adjuster didn't want to cover it since I didn't have any "before" pictures of that area. It took a few days for me to find an old picture I took when I replaced the fuel tank and you could barely see that part of the frame without a crack. It all worked out in the end, but the adjuster said it would be a good idea to take a couple dozen pictures of every nook and cranny and send it to them so they had it on file in case anything else happened to it.

They also won't allow you to take it off road and you'll have to keep it in a garage. I pay $170 per year with $0 deductible and agreed value is $18k. Do i think the value is high? Yes, but valuing it $5k lower was only a few dollars difference, so I went high.

The guy that I talked to on the phone to set it up just needed to see a few pictures to make sure it wasn't a beater, and it was no problem getting it covered for $18k. I asked him how high I could go, and he said their company insures CJs without a problem up to $30k...he said any more than that, then they need more documentation as to why.

Moral of the story: Go as high as you want and ask for different quotes for different values.

Edit: I didn't tell them I had an appraisal to see if it would fly, and it did.
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post #6 of 18 Old 07-29-2020, 08:33 AM
hp_lovecraft
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Quote:
Originally Posted by cglax6 View Post
They also won't allow you to take it off road and you'll have to keep it in a garage.
I talked to my insurer years ago about "classic car insurance", for the same reasons.

If I'm in an accident, the insurance company is going to look at the book value, which is probably $500, and determine that any damage, NO MATTER HOW SMALL, would probably cost more to fix then the $500, so they junk the CJ5, and give you $500.

I've read lots and lots of horror stories exactly like that here. Sometimes you have the option of buying back the "junked" jeep, but you still have no chance of having that insurance company fix anything.

The cost of Classic Insurance is not that high, but thats because they have all sorts of conditions, like must be "locked" in a garage. Has to be kept in excellent condition, preserved to original specs. You are not allowed to use it as a daily driver, and they keep track of mileage, etc. No off road.

In the end, its not really a good deal for an old jeep that I do drive every day, and off road every chance I get. I drive safe and defensive, and keep an eye out for the crazies everywhere.
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post #7 of 18 Old 07-29-2020, 08:52 AM
cglax6
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Quote:
Originally Posted by hp_lovecraft View Post
If I'm in an accident, the insurance company is going to look at the book value, which is probably $500, and determine that any damage, NO MATTER HOW SMALL, would probably cost more to fix then the $500, so they junk the CJ5, and give you $500.
I read through all the fine print on my policy and the only restrictions I have are (compared to any other normal policy):

-Garage kept
-Won't cover damage done off road
-Mileage (3k/yr; my average the last 3 years has been 2.5k)

When I had my damage to my rear frame, they paid the full price tag...just north of $2200; and the work was done at at classic car restoration shop. The proof is in the pudding...my policy is based on the agreed upon value; it's in the contract.

I agree that it's not for everyone because of the off road and mileage restrictions, but you can increase mileage to whatever you want...you just pay accordingly.
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post #8 of 18 Old 07-29-2020, 09:12 AM
87MJTim
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Quote:
Originally Posted by cglax6 View Post
I read through all the fine print on my policy and the only restrictions I have are (compared to any other normal policy):

-Garage kept
-Won't cover damage done off road
-Mileage (3k/yr; my average the last 3 years has been 2.5k)


When I had my damage to my rear frame, they paid the full price tag...just north of $2200; and the work was done at at classic car restoration shop. The proof is in the pudding...my policy is based on the agreed upon value; it's in the contract.

I agree that it's not for everyone because of the off road and mileage restrictions, but you can increase mileage to whatever you want...you just pay accordingly.
USAA for me, also. I was referred to American when I bought mine.

This was a NO-GO for me. I want to drive it as fun vehicle, not a show car.

Tim

87 Comanche, 4.0, AX15 (formerly BA10/5), D44
84 CJ7, 4.0 (93 XJ) AX15 (Formerly T5)
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post #9 of 18 Old 07-29-2020, 10:49 AM
bob4703
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With Hagerty I have no use or mileage restrictions. I don't have to garage it. The only stipulation is I must have another vehicle for primary transportation.

When we first got the Jeep my wife put it on our policy with the other cars and truck. We were paying almost $900 a year for the Jeep for basic coverage and no collision. I pay $200 with Hagerty for full coverage and no deductible. Shop around.

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post #10 of 18 Old 07-29-2020, 11:42 AM
JEEPFELLER
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Garage
I've kicked around maybe getting the Hagerty for the past few years, at least for "Willy" (my '46) I finally have him about the way I want him.

I might could try it with "Mr. Jeep" (my '77 CJ-5)----Problem there is, he is "My Daily Driver".

I've pondered the driver thing, Is there a time thing that denotes when "daily" starts. Like, could my wife's rig suddenly become my daily driver?

Road or offroad?

Here's the definition from Wiki, other sources read similar.

" A road is a piece of land which connects two or more places. Usually, a road has been made easy to travel on, for example by removing trees and stones so the ground is more level. Although many roads are made of gravel and dirt, some are paved with concrete or bricks or stones."

I contemplated keeping a piece of asphalt in my Jeeps to be "onroad" at all times.

I once had an officer show me where my train horn was for offroad use on his phone (my guess was to show me the manufacturers rules), He was also unable to show me exactly what offroad meant, I told him that my interpretation was that I installed it so that It did not drag on the ground.

So, are any of those "prerequisites" for insurance specifically assigned with an in house definition?

The feller in my pic will most likely not be able to meet your needs.

----JEEPFELLER
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post #11 of 18 Old 07-29-2020, 12:41 PM Thread Starter
Horatio
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Quote:
Originally Posted by JEEPFELLER View Post

The feller in my pic will most likely not be able to meet your needs.

----JEEPFELLER
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post #12 of 18 Old 07-29-2020, 12:50 PM Thread Starter
Horatio
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Location: Peachtree City
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I haven't had a chance to speak with American Collectors Insurance yet, but I received a good online quote from Hagerty's for $15K with 100/300 collision and liability, no deductible, for $368 per year. Seems pretty dang reasonable to me. They do require it to be garaged, and only driven for pleasure. It even comes with unlimited emergency roadside assistance, of which I am sure I will partake until I get the bugs ironed out.

$15K is not what I paid for it, but I figured it was good to go above to allow for a bit of appreciation and the lack of comparables on the market.

Side question... I've heard that the triple black laredo is a rare bird. Is there truth to this? Is there additional value in that which needs to be accounted for?
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post #13 of 18 Old 07-29-2020, 04:55 PM
bob4703
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Quote:
Originally Posted by JEEPFELLER View Post
I've kicked around maybe getting the Hagerty for the past few years, at least for "Willy" (my '46) I finally have him about the way I want him.

I might could try it with "Mr. Jeep" (my '77 CJ-5)----Problem there is, he is "My Daily Driver".

I've pondered the driver thing, Is there a time thing that denotes when "daily" starts. Like, could my wife's rig suddenly become my daily driver?

----JEEPFELLER
I've been kicking around the idea of adding a second Jeep to the stable. It is a limited edition Grand Cherokee, but it isn't quite old enough to qualify for the agreed value insurance. I emailed Hagerty and asked could it qualify. They replied it would because of the limited edition but there would have to be one vehicle registered to us that would be the primary mode of transportation. They might let you use her car. Couldn't hurt to ask.

-----

Paved roads are prime examples of government over spending!
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post #14 of 18 Old 08-04-2020, 07:26 PM
Camo711
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This is GREAT info!
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post #15 of 18 Old 08-05-2020, 10:36 AM
cpadget
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Hagerty x10. I'm at roughly $300 annually. I believe I have to keep miles below 5K, which is no issue here in AZ. I park it from May to October, and use the floating vehicle more often.
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