BMW M5 Forum and M6 Forums banner

'Agreed Value' Insurance?

9K views 62 replies 22 participants last post by  KevinM 
#1 ·
For those that daily drive your M5's and/or they are your primary transportation, do you or have you tried to get an agreed value insurance policy? My '02 is in tip-top shape, although it has 130k miles. Nada value is only about $15-16k, which I'm guessing is what it might actually be worth if I were to try and sell it. The problem is, I don't want to sell it, I want to keep driving it maybe 4-5 more years. I believe that it would be very hard for me to replace this particular car for the Nada value if something were to happen to it, like a total loss accident.

I never intended to get back everything I've put in this car, but I think I would feel more comfortable with an agreed value of somewhere around $25k. I understand that an insurance policy for this amount will be higher and I might be fine with that depending on the difference. I've owned this car going on 6 years and it's paid for, but don't want to get screwed if something happens, especially if another driver makes a bonehead move and totals my car.

Any input?
 
#2 ·
I have Hagerty with stated value, but it is not a daily driver. Not sure they wouldn't cover a daily driver, just charge more since you will be putting more miles (and more risk) on the car.

Regards,
Jerry
 
#3 ·
I've had Hagerty for older vehicles in the past, not sure if they do primary transportation insurance. When I had a policy with them, I had to give them my primary transportation insurance information. I guess they want to be sure you aren't using it daily.
 
#4 ·
This is a good topic. Please let us know what you find. Hagerty's has been recommended a lot when I see threads asking about agreed value. This is the first time I've seen someone trying for agreed value on a daily driver. But, I would love to do the same thing to cover my mods.
 
#7 ·
I've inquired with a local Allstate agent, will see if they reply. I had Allstate for over 10 years in the past, think the only claim I ever had was for a rock chip on a windshield on a car I used to have. We were "good" customers, but unfortunately their rates were not favorable. My wife was able to get a much cheaper policy with her employer a few years ago so we switched. She inquired with them if we could do 'agreed value', but got some canned response that didn't answer the question.
 
#9 ·
I asked my insurance agent friend about this and he said stated value policies are usually only for collector cars and they typically don't let you daily drive them. I asked my personal agent and she didn't give me a clear answer, but indicated there are options out there for this. She tried to say the claims agents would look at what they're selling for right now, but I don't think she understood it's difficult to get a clear market value on these cars and I don't trust the claims agent to actually assess a fair value. I have no idea what we'd be looking at for costs on a stated value DD policy. I picked up a low mileage M5 with less the 17k mi for $30k and expect I could flip it right now for +/- $35k, and EAG would probably want $45k+ for it ouich. NADA, meanwhile, puts it at $24k dealer price. Overall this is a shortfall I have trouble living with. Keep us updated.
 
#10 ·
I don't understand why it would be so hard to get an agreed to value, even for a daily driver. You pay an insurance rate based on the value and the insurance company makes the rate based on probability. So if your daily driver has a blue book value of $20k, but the agreed to value is $25k, why would it be any different from any other car with a blue book value of $25k? Sure there must be adjustments based on probabilities, such as STIs and EVOs have higher rates than Camrys and Accords, but you are paying for the coverage of $25k, period. It shouldn't matter if it's a car or a rock you found on the ground, you should be able to insure it for whatever value is agreed to by both parties. (Oh yeah, they do that with diamonds!) Of course you don't want to insure a Pinto for $100k that ends up in a lake a week later (Oh, my bad, it was an ACCIDENT, I swear!). But we are probably talking about a $5-$20k difference in most cases between blue book and market value. I'm not understanding the concept here. Any ideas??
 
#12 · (Edited)
The #1 reason why this seems difficult to do is because the system could easily be manipulated and taken advantage of. For instance, I buy a $15k car, tell an insurance company I want to insure it for $25k, even though the market value is $15k. Let's say it "somehow" runs off the road, sideswipes a concrete median and bends the frame... car is totaled. Insurance company pays out $25k, you just pocketed $10k.
 
#14 ·
I received a response from an Allstate agent, he didn't think any type of agreed value insurance policy was possible for a primary transportation vehicle. I believe the primary reason for this would be due to preventing insurance fraud.

For those that have low mileage M5's, I think you actually could do something because your car would possibly appraise for more and you could take that appraisal to the insurance company and say you want that much insurance. For me, I'm stuck. I have a 130k mile vehicle that I've owned for going on 6 years, but spent $50k in it. I mean, I'll be honest with myself and say that the car might not really sell for more than $15k, maybe not even that. I guess it's foolish to think that I should get more for it. Although, I really don't think I could find another car with all the maintenance kept up like mine for $15k.

The only way I can think of to possibly get around this... is by buying a beater, listing it as my primary and then get stated/agreed value on the M5 with collector insurance. Of course, there is no guarantee that would even work if they thought the car wasn't worth $25k and I couldn't get a legit appraisal for that amount.

If anyone can find out anything else or knows of an insurance company that could help out, let me know.
 
#17 ·
There may not be a way around this. I have my Camaro insured for $40k as an EXOTIC not a collecters car, as it is not old enough to meet that standard. I pay $700 a year for that amount of coverage, they made me list the mods on my car/wheels/etc and value of the car in order to get that much coverage. They don't price check any of it nor ask for engine pictures. I'm allowed to put 5000 miles on it a year BUT it says in your contract the car may only be used for events, shows, or "club activities" and you can even list the clubs you're in so the more the better. So if you do wreck it you can say you were on your way to a possible show, or club event etc.
You also have to have the car in a garage and you must show that you own another car that you can daily drive. Have to provide the VIN number of it and show it on your current insurance policy.

You can also negotiate how many miles you put on it a year and the price of the policy goes up as expected. I used an insurance broker to find me the right insurance provider that met my needs. If you want more info just send me a PM and I can give you more detail.
 
#18 ·
Excellent topic of interest. Agreed upon value is not readily available for daily driver vehicles. We have agreed upon insurance on our 1988 BMW R100rs motorcycle at a very low rate but 1. not more than 2200 miles a year usage, 2. shows and club events usage only, 3. "social" usage i.e. the Sunday ride to breakfast. NO daily driver usage, no riding to work.
Inquired as to agreed upon value for my wife's Z-3 which gets less than 2000 miles a year and was told by my agent that he knew of no company that would write a policy of that nature. Were the car a classic or collectable then yes the various specialist agencies would write the policy but our car didn't qualify. However my agent did say that if you have the money somewhere there will be a company that will insure you example a Lloyds of London specialist type of company.

Keep us posted.
 
#20 ·
I've been told that an agreed value insurance policy for a primary transportation automobile is generally not available with most insurance companies. Think the only way around this is to have another vehicle as a primary and insure the M5 as a collector/specialty through one of the places like Hagerty or Heacock. Kind of screwed since I don't have another car other than my wife's SUV that she is the primary driver.
 
#22 ·
You can most likely cover mods with an insurance rider policy. If something happens to my car, the only mods are evolve headers/cats, so would most definitely be buying the car back if a total loss, to sell or re-use the headers. This is, of course, assuming I survive an accident and the headers aren't damaged!
 
#28 ·
Resurrecting this thread...

I was doing some research and came across a couple companies: Leland West and American Collectors Insurance - who offer agreed value policies where you choose your value and mileage (among other details). American also appears to allow some general usage and occasional use of the vehicle as primary transportation (i.e. commuting, running errands, etc.).

Based on the internet quotes from their websites, it wouldn't cost much more than my policy through Liberty Mutual and I would be able to purchase a similar vehicle from EAG with the 'agreed value' I selected.

Does anyone have any experience with an 'Agreed Value' auto insurance policy? Thoughts are appreciated!
 
#29 ·
Expensive to do. I found a little relief in my personal policy by adding an additional 25% value to my Progressive coverage on my 03 M5. Being it has only 40k miles I was instantly upside down and worried when driving her. Basically it gave me a bit more piece of mind without having to do agreed value which was too cost prohibitive to me. Just a thought depending on your situation.


Sent from AutoGuide.com Free App
 
#30 ·
What did you have to ask for/say to them to get the added 25%? I have less than 34k miles on my 01 so I would be in the same situation...


Sent from AutoGuide.com Free App
 
#31 ·
Progressive offered it as a option to me going elsewhere for agreed value as they don't offer that. My situation was made worse by me financing a large chunk so if she was totaled I'd be paying for a while on a car I don't even have. I want to say at the time they had the insured appraised value at apx $21k. The extra 25% puts me at apx $26k in coverage. Not to say that a company won't pay on a high price low mileage example. They may make good on it but you know it will take months and a lot of help from EAG and others to provide comp sales of that nature to prove what you paid is viable for this car. (There's a thread floating around right now with a member going though the process) Once I feel comfortable that I have better equity I'll remove the 25% buffer. I think most major companies offer it. It didn't seem like a secret. If I can find my policy I'll tell you the line item they call it. I hope that helps a bit. Feel free to PM me too.


Sent from AutoGuide.com Free App
 
#33 · (Edited)
I've always used Hagerty on nice cars. I'm in the process of buying one of these M5's and their policy was pretty solid. Only catch is the following.

- Must have a primary driver besides the insured car
- Must have a garage to store it in.

I set mine up for 9,000 miles a year with a stated value of $25,000 with 100 mile roadside free towing and it was $900 a year.

Gieco had similar prices, but refused to give me a value on the car should it be totaled. It would be "market price" and that makes me nervous.

*Update* Haggerty shot me down for my daily being over 10 years old and my annual mileage being over 6k

Likely switching to another source once I'm home, I'll use geico for the 2,000 mile road trip home in the car.
 
#34 · (Edited)
I just wanted to chime in here, being that I think my own personal experience along with the collective experience of many other forum members on the RX7Club and the SupraForums would be very helpful.

1) Read this: Grundy Insurance for the difference between Agreed Value, Actual Cash Value, and Stated Value policies. You want an Agreed Value policy. Anything other than that will NOT guarantee the payout in the event of a total loss. Period.

2) Don't believe what the regular (non-specialty) insurance companies (State Farm, Allstate, Progressive, etc) claim with respect to providing you with "guaranteed" coverage. Trust me.

Traditional insurance companies DO NOT underwrite Agreed Value policies. No matter what they tell you. Unfortunately, the insurance salesman (that's what they are) will SELL you whatever policy you want (agreed value, cash value, collectible, etc), only for you to find out in the unfortunate event of a claim that the UNDERWRITING Dept (the only guys who matter) don't write guaranteed policies. They'll INSURE up to a desired amount, but will STILL perform a market search and give you "fair market value" for your "used vehicle" based on "depreciation" with age and use, at the time of a claim/loss. What that means is, you've been paying a premium for a level of coverage you never had, and only find out you're hosed when it's too late (the time of a claim payout).

Another similar thing. If you have homeowner's or renter's insurance, it'll cover your personal belongings stored in your house up to a certain amount, right? WRONG. Most traditional home insurance underwriters SPECIFICALLY have clauses EXCLUDING coverage of car/engine parts, even if/when stored in your home.

There are several well-established specialty insurance companies that write nothing BUT Agreed value policies. Companies like American Collectors, American Modern, Hagerty, Grundy, etc. How much they'll cover your car for is based on what you can convince them your car is worth, depending on condition, mods, recent comparative sales, etc. And once you agree on a price, they will GUARANTEE (up to that) amount in the event of a (total) loss. No if's, and's, or but's.

Bottom line, get it in writing, from underwriting. Otherwise, you're throwing your money away. And preferrably, deal with someone who's PRIMARY business is writing such policies. Then you'll have some peace of mind.

3) All the specialty insurance companies will only write Agreed Value policies on pleasure cars. Cars you only use for occasional pleasure, shows, events, etc. Some of them provide a mileage allowance; some of them are unlimited mileage as long as its an approved usage. And some will even allow limited driving to work (eg once a week or once a month etc), but for a premium, of course.

But only one will insure your daily driver as well: Grundy Insurance (specifically their MVP Program). I got a quote on it, and it was EXPENSIVE, so I passed on it for the M5.

4) Last thing. If you wanna find the BEST Agreed Value policy for your vehicle(s), go through Rally Insurance: Classic Car Insurance, Auto, Life, Home, Commercial - Illinois. They're a broker for all the specialty insurance companies, and as such, will shop around the different companies based on the type of car and usage you're seeking coverage for, and can provide you with the best rate (cuz they're a broker); cheaper than you can by contacting the Insurance Company directly.

Just my $0.02. Hope it helps :)
 
#36 ·
Guess it's just becoming a fact to deal with as our cars keep aging. Those with low mileage, more valuable cars will most likely not be using them as daily transport, so can go with a pleasure use/collector insurance policy. But, those of us that still daily drive, it's just the luck of the draw whether or not something happens. Guess the best scenario is to have a new(er) crap car to claim as primary transportation and insure the M5 as pleasure use with no mileage limit.
 
#37 ·
Has anyone worked with Grundy?

I finally got through to them and got a really competitive rate for a stated value insurance policy. They are the first company to be willing to play ball. I've had issues since my daily is older than the M5 and a few other items from the other companies out there.

I need to up the mileage allowance but I was offered just under $300 annual for 2500 miles a year $23,000 stated value policy with Grundy.
 
#38 ·
A "stated value" policy is worthless (i.e. no better than a normal policy). If you actually want to receive the value in the event of a loss, you must have an "agreed value" policy. Read the fine print of all the stated value policies and research people's experiences.
 
  • Like
Reactions: EuroObsess
#40 ·
No, but read Grundy's own article about insurance types. A stated value policy is just like a normal policy except it limits the maximum amount the insurance company will pay in the event of a loss; hence, it's actually a great deal for them to find customers willing to cap maximum payouts on ACV type policies.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top