American Collectors Insurance question.

There a
Replacement value
Agreed Value
Stated Value

what they mean is this:

Replacement value - they will give you whatever price is the replacement
cost. However, they seek replacements by checking the local market and
taking an average with some companies and the lowest price with outs. So if
you total your mint 35,000 mile restored 1970 LT1 convertible, and they find
someone advertising a 1970 convertible for $8000, guess what you get.

Agreed Value - They agree to a value and base the charges to you on this
amount. When the car is totaled, they then pay a figure that often is less
than what your car is worth. I'm not clear if this is due to them doing
magic with replacement cost, market value, and agreed value and averaging to
get a number, which I think is what some do, or if it is due to the price
does not change with the market. For example, if you insured your NOM 1964
convertible for $25,000 3 years ago ( a very good price for you), it is now
about $5000 or more below what you need to replace your car, but you agreed
to $25,000.

Stated Value - You say your car is worth $30,000, you pay rates based on
$30,000, and if totaled, you get $30,000. Cut and dried.



"Barking Rats" > wrote in message
news
> In article >,
> RicSeyler > wrote:
>
> > There is another phrase you have to be very aware of besides Stated
> > and Replacement.
>
> What are the pros and cons of stated vs. replacement. (Am. Collectors
> uses stated values as I understand it - I state it, they agree and
> insure it for that amount.)
> Here's waving to ya - \||||
>
> Owen
> ___
>
> '67BB & '72BB
> ___
>
> "To know the world intimately is the beginning of caring."
> -- Ann Hayman Zwinger

As always Tom has given a pretty good answer ...

I still believe that these terms are defined differently by each
Insurance Company depending on the phase of the moon etc on any given
day...( night ?)

I do know that when I had a "Big Oops" a few years ago the adjuster
(from American Collectors) was really cool as he explained how the
Insurance Companies work...(He also did adjustment work for several
other Collector Insurance Companies) ...

Generally a car is totaled if it will cost 80 percent of its value to
repair... so if you insure your car for $20,000 it will be totaled
MOST OF THE TIME... if it will cost the Insurance Company $16,000
in parts and labor to repair it....

BUT.... even with a Zero deductible your out of pocket expenses MAY
be quite allot ...

Take your OEM ENGINE... IT DOES WEAR OUT ...so it is depreciated over
a period of time...and after 30 years.. guess what....it is worth zero
in the mind of the Insurance Company...Oh you had it rebuilt 3 years
ago... well then it is only depreciated 30 percent...??? In other
words you are responsible for 30 percent of what that engine costs to
be replaced... and the Insurance company is off the hook for that 30
percent.

Just sit down and think about what parts do wear out on a car and can
be (at the Insurance companies whim be depreciated)...

Now take your OIL PAN... That part DOES NOT WEAR OUT so they will
pay 100 percent for a replacement...even if you ripped a hole in the
bottom as you sailed the car over the railroad tracks ...

Now in the Street Rod area where Graphics (Shadow Flames, etc) are
pretty common you get a major break.... The Insurance company has to
pay to have them replaced (expensive) even if you do not repaint the
car with graphics... You can pocket the money...!

What I learned from him is DO NOT OVER INSURE A CAR...

I you owned that one (1) 1983 Corvette that sits in the lobby of the
NCM and had it insured for 1,000,000 bucks since it is a true 1983
....all the insurance company would need to rebuilt it is the rebuild
able frame ...damaged or not...... Then they can bolt on parts (new or
used) off of one of the 1,000's of 1984 Corvettes and repair the car
.... and I bet that the cost to repair your one and only 1983 will be
less then one million bucks...

Bob Griffiths
68 SS 396 Chevelle
64 & 72 Corvette Rag tops
76 79 & 95 Corvette Coupes

=============================================

On Thu, 28 Oct 2004 06:57:22 GMT, "Tom in Missouri" >
wrote:

>There a
>Replacement value
>Agreed Value
>Stated Value
>
>what they mean is this:
>
>Replacement value - they will give you whatever price is the replacement
>cost. However, they seek replacements by checking the local market and
>taking an average with some companies and the lowest price with outs. So if
>you total your mint 35,000 mile restored 1970 LT1 convertible, and they find
>someone advertising a 1970 convertible for $8000, guess what you get.
>
>Agreed Value - They agree to a value and base the charges to you on this
>amount. When the car is totaled, they then pay a figure that often is less
>than what your car is worth. I'm not clear if this is due to them doing
>magic with replacement cost, market value, and agreed value and averaging to
>get a number, which I think is what some do, or if it is due to the price
>does not change with the market. For example, if you insured your NOM 1964
>convertible for $25,000 3 years ago ( a very good price for you), it is now
>about $5000 or more below what you need to replace your car, but you agreed
>to $25,000.
>
>Stated Value - You say your car is worth $30,000, you pay rates based on
>$30,000, and if totaled, you get $30,000. Cut and dried.
>
>
>
>"Barking Rats" > wrote in message
>news
>> In article >,
>> RicSeyler > wrote:
>>
>> > There is another phrase you have to be very aware of besides Stated
>> > and Replacement.
>>
>> What are the pros and cons of stated vs. replacement. (Am. Collectors
>> uses stated values as I understand it - I state it, they agree and
>> insure it for that amount.)
>> Here's waving to ya - \||||
>>
>> Owen
>> ___
>>
>> '67BB & '72BB
>> ___
>>
>> "To know the world intimately is the beginning of caring."
>> -- Ann Hayman Zwinger

As always Tom has given a pretty good answer ...

I still believe that these terms are defined differently by each
Insurance Company depending on the phase of the moon etc on any given
day...( night ?)

I do know that when I had a "Big Oops" a few years ago the adjuster
(from American Collectors) was really cool as he explained how the
Insurance Companies work...(He also did adjustment work for several
other Collector Insurance Companies) ...

Generally a car is totaled if it will cost 80 percent of its value to
repair... so if you insure your car for $20,000 it will be totaled
MOST OF THE TIME... if it will cost the Insurance Company $16,000
in parts and labor to repair it....

BUT.... even with a Zero deductible your out of pocket expenses MAY
be quite allot ...

Take your OEM ENGINE... IT DOES WEAR OUT ...so it is depreciated over
a period of time...and after 30 years.. guess what....it is worth zero
in the mind of the Insurance Company...Oh you had it rebuilt 3 years
ago... well then it is only depreciated 30 percent...??? In other
words you are responsible for 30 percent of what that engine costs to
be replaced... and the Insurance company is off the hook for that 30
percent.

Just sit down and think about what parts do wear out on a car and can
be (at the Insurance companies whim be depreciated)...

Now take your OIL PAN... That part DOES NOT WEAR OUT so they will
pay 100 percent for a replacement...even if you ripped a hole in the
bottom as you sailed the car over the railroad tracks ...

Now in the Street Rod area where Graphics (Shadow Flames, etc) are
pretty common you get a major break.... The Insurance company has to
pay to have them replaced (expensive) even if you do not repaint the
car with graphics... You can pocket the money...!

What I learned from him is DO NOT OVER INSURE A CAR...

I you owned that one (1) 1983 Corvette that sits in the lobby of the
NCM and had it insured for 1,000,000 bucks since it is a true 1983
....all the insurance company would need to rebuilt it is the rebuild
able frame ...damaged or not...... Then they can bolt on parts (new or
used) off of one of the 1,000's of 1984 Corvettes and repair the car
.... and I bet that the cost to repair your one and only 1983 will be
less then one million bucks...

Bob Griffiths
68 SS 396 Chevelle
64 & 72 Corvette Rag tops
76 79 & 95 Corvette Coupes

=============================================

On Thu, 28 Oct 2004 06:57:22 GMT, "Tom in Missouri" >
wrote:

>There a
>Replacement value
>Agreed Value
>Stated Value
>
>what they mean is this:
>
>Replacement value - they will give you whatever price is the replacement
>cost. However, they seek replacements by checking the local market and
>taking an average with some companies and the lowest price with outs. So if
>you total your mint 35,000 mile restored 1970 LT1 convertible, and they find
>someone advertising a 1970 convertible for $8000, guess what you get.
>
>Agreed Value - They agree to a value and base the charges to you on this
>amount. When the car is totaled, they then pay a figure that often is less
>than what your car is worth. I'm not clear if this is due to them doing
>magic with replacement cost, market value, and agreed value and averaging to
>get a number, which I think is what some do, or if it is due to the price
>does not change with the market. For example, if you insured your NOM 1964
>convertible for $25,000 3 years ago ( a very good price for you), it is now
>about $5000 or more below what you need to replace your car, but you agreed
>to $25,000.
>
>Stated Value - You say your car is worth $30,000, you pay rates based on
>$30,000, and if totaled, you get $30,000. Cut and dried.
>
>
>
>"Barking Rats" > wrote in message
>news
>> In article >,
>> RicSeyler > wrote:
>>
>> > There is another phrase you have to be very aware of besides Stated
>> > and Replacement.
>>
>> What are the pros and cons of stated vs. replacement. (Am. Collectors
>> uses stated values as I understand it - I state it, they agree and
>> insure it for that amount.)
>> Here's waving to ya - \||||
>>
>> Owen
>> ___
>>
>> '67BB & '72BB
>> ___
>>
>> "To know the world intimately is the beginning of caring."
>> -- Ann Hayman Zwinger

In article et>,
"Tom in Missouri" > wrote:

> Stated Value - You say your car is worth $30,000, you pay rates based on
> $30,000, and if totaled, you get $30,000. Cut and dried.

Thank you for the explanation. The stated value is American Collector's
method, yes?
Here's waving to ya - \||||

Owen
___

'67BB & '72BB
___

"To know the world intimately is the beginning of caring."
-- Ann Hayman Zwinger

In article et>,
"Tom in Missouri" > wrote:

> Stated Value - You say your car is worth $30,000, you pay rates based on
> $30,000, and if totaled, you get $30,000. Cut and dried.

Thank you for the explanation. The stated value is American Collector's
method, yes?
Here's waving to ya - \||||

Owen
___

'67BB & '72BB
___

"To know the world intimately is the beginning of caring."
-- Ann Hayman Zwinger