MGB & GT Forum

I just read my AMERICAN COLLECTORS INSURANCE policy.


READ YOUR POLICY!!

What does this mean for you and your car?
Diminished value is the difference between what your auto was worth before the accident and after the repair.

A car accident will diminished a vehicle's value by 15% to 50% because it had been involved in an accident requiring significant repairs. Even though repairs have been made properly, there is a loss of value due to inherent diminished value.

What are some of the factors that cause diminished value? Some, but not all of these factors are:

Overall percentage of damage to the auto versus its original value.
Year, make or model of the vehicle.
Any frame damage.
Use of non-OEM parts. Parts that are not the original parts placed on the car by the manufacturer.



GOOGLE = Diminution in Value



Edited 4 time(s). Last edit at 2017-01-16 12:42 PM by ski.dive.

In other words, if you are at fault.

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Cogito ergo sum periculoso

Just get a "stated value" policy from Hagerty. We beat this horse to death over on the Corvette forum

Hans

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The Larry Shinoda Collection: 1965 Corvair Monza 140, 1969 L-68 427 Corvette roadster (sold), 1970 BOSS 302 Mustang. New addition 1969 MGB GT & 1968 427 El Camino!

NO....NO....NO....NO!!! With a Stated Value policy, the insurance company is selling you a policy at a price that YOU state the car is worth...but they are NOT agreeing to pay that value in case of a loss.

AGREED VALUE....they and you agree to a value of the car to be paid upon loss

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1952 MGTD - 1969 MGC - 1972 MGB - 1974&1/2 MGB/GT V8 conversion - 1978 MGB

mowog1@aol.com

READ YOUR POLICY, and see if it has a ''Diminution in Value'' clause.



Edited 1 time(s). Last edit at 2017-01-16 12:44 PM by ski.dive.

http://www.autoappraisal.com/value.htm

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Friends talking around a fire is the history of mankind.

From Hagerty's website. The all-caps emphasis is theirs.

What does Hagerty's "Guaranteed Value"™ coverage mean to me?

Guaranteed Value insurance policies guarantee that, in the event of a covered total loss, you will receive the vehicle’s full insured value, which we will have already agreed on. Please see the policy features main page for more details.

We use our industry-leading tools to help you determine the true value of your classic, then create an agreed value policy that covers it.

WE'LL AGREE ON A FAIR VALUE FOR YOUR CLASSIC, AND IN EVENT OF A COVERED TOTAL LOSS, HAGERTY PAYS THAT AMOUNT*. GUARANTEED.

*Any deductible and/or salvage value if retained by you will be subtracted from the total amount paid.
Low Annual Premiums

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“Ideological certainty easily degenerates into an insistence upon ignorance". Daniel Patrick Moynihan

In any debate, the side which strays from civil discussion is usually the side that lacks confidence in its debate position or in the merit of their arguments. Making personal attacks on the opponents instead of staying on the subject is also a sign of weakness.

Anyone who feels compelled to respond in kind to any perceived slight is often suffering from narcissism.

Diminution in value applies to all insurances and makes perfect sense. It allows for the insurer to deny or adjust a claim if the car was originally misrepresented by the owner or the condition of the car was not the same as when the policy was written.

In other words, if you show photos of someone else's car, in better condition than yours, in order to have it valued higher (I know of a few who have done this--stupid) they have the right deny or adjust the claim.

Or, if your car is a #2 restoration and it's insured with an agreed value policy as such, and you later extensively modified the car in any way that devalues the car, they have every right to deny a claim if they weren't notified of the modification and given the opportunity to adjusted the value accordingly. Instead, they would adjust the value during the time of the claim.

They're basically covering their butts in case you lied about the car or do something really stupid to the car, ruining the value. Who would expect them to do otherwise?

Your example of the value potentially being lower after a car's repaired is valid, but that lower value doesn't apply until after the car is repaired. Before that, with an Agreed Value policy, you will receive the total agreed amount of the policy. After it's repaired, they will reevaluate the value and may determine that the car is now worth less and insure it as such.



Edited 1 time(s). Last edit at 2017-01-16 11:40 AM by Emil Wojcik.

The OP is incorrect. He needs to talk to his insurance agent and get straightened out before making false claims.

What happens when you're in an accident and have to deal with an insurance company that you don't have any agreement with. Do you have to accept what they think the car is worth?

If you're smart you'll have your own insurance with a reputable company like Haggerty or Grundy, in which case you get them involved, settle through them, and then let them fight it out with the other guy's insurance company. That service is part of what you're paying for...

Dick

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Errabundi Saepe, Semper Certi
(Often wrong, but always certain)

X2!

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Friends talking around a fire is the history of mankind.

I too just got the stated value from hagarty. What its insured for is what they pay. Premium based on the value you want.

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Bill Murphy

'75 Midget


Progress is not the mere correction of evils.  Progress is the constant replacing of the best there is with something still better.
 
- Edward A Filene

Please do not confuse 'stated' vs 'agreed' value policies. Only Agreed Value guarantees they will pay the full amount. Stated Value allows them to readjust the value at the time of a claim. I believe Hagerty only issues Agreed Value policies but I may be mistaken.

https://www.hagerty.com/articles-videos/ask-hagerty/whats-the-difference-between-agreed-value-and-stated-value-coverage