2nd Gen Non-Engine/Transmission Auto Insurance - Agreed Value

[vastan]

I am the original owner of a 1997 Dodge Ram 2500 4x4 12v Cummins ext cab long bed with only 113k miles. The truck is in almost pristine condition and I just spent over $3000 in maintenance and upgrades. Unfortunately, my current insurance company will only insure it for $2950 (NDA value). I have looked at other similar trucks on the net (ebay and Auto Trader) and realized that I would easily spend upwards of $12k for a comparable truck with the 12v Cummins. Does anybody have advice on an auto insurance company that will insure my truck at Agreed Value? I appreciate the help.



Thanks,

 

[Cosmo]

That's odd, my 98 12-valve is only a 2wd and the book value was well over $7000.

www.nadaguides.com

Tell your insurance to check their math again. Sounds like they were giving you the value of a gas truck. Clean retail for a 97 2500 extended cab 4x4 diesel laramie with power seats and 113k is about $10k.

 

[vastan]

Amica Auto in Texas bases the policy on the Average Trade-In Value ($2950) and does not offer a policy for Agreed Value. Regardless of the pics that I offered to send them showing the truck's pristine condition. That is why I am looking to change to a different auto insurance company. Any suggestions?



Thanks,

 

[HBarlow]

I don't think any legitimate auto insurance company will sell you an agreed value policy for your truck or any vehicle that is driven daily.

Those of us who own classic cars have very inexpensive agreed value insurance policies on the cars from one of the several specialized insurance companies who insure classic cars but there are strict requirements on the policies. The cars cannot be daily drivers meaning driven for ordinary home to work, shopping, doctor appointments, etc. Classic cars can only be driven to club events, in parades, for car shows, and other similar events, or to have the cars worked on. There is an annual mileage limit of something like 3,000 miles, perhaps less. I've forgotten.

 

[Tractorat]

I dont know where the $2900 comes from. If you look on kelly blue book, it is worth a lot more than that. And, if you were to crash it today, most insurance companies would also compensate you for recent work you have had done.

I suspect they are giving you a price on trade in value for a 2wd half ton with the small gas motor.

You need to get another insurance company. Try Nationwide.

BTW, any insurance company I've ever dealt with has not given a value of your car up front. When you total it, they will generally go out and find similar vehicles that are for sale, and pay you according to what they find.

 

[Wayne M.]

Yup. I mentioned something on this order in another topic a while ago. There's a lot of underhanded practice in the insurance and vehicle wholesale businesses.
I know first hand that there are different pricing books and personally know one man who uses one low running book to buy and a more popular book to sell by. As a whole we CTD guys are in a unfavorable spot.

 

[HBarlow]

Evil auto retailers are always trying to buy low and sell high. They probably even believe in and support the profit motive. Terrible people those auto retailers. They should all be forced to work for government so they wouldn't ever have to worry about earning a profit or making a living.

 

[Road Dog]

I guess out and out lying is ok if it's for profit.

 

[Tractorat]

Everyone knows going in that used car salesmen are probably crooks going in. Thats why we have the phrase "used car salesmen".

But what does that have to do with car insurance ?

 

[HBarlow]

No dealer uses the Kelly Blue Book except possibly in their restrooms. Dealer's use a "black book. "

Insurance adjusters use neither. Insurance adjusters use a subscription service that values damaged vehicles. The adjuster keys in the details - year, make, model, odometer, condition, maybe other data I've forgotten, and a fax or message comes back shortly.

A shovel will be required for all the misinformation in this thread.

 

[Tractorat]

Insurance adjusters use neither. Insurance adjusters use a subscription service that values damaged vehicles. The adjuster keys in the details - year, make, model, odometer, condition, maybe other data I've forgotten, and a fax or message comes back shortly.

This is correct when they decide how much they will pay to get a car fixed. And in most cases, they will go with what the body shop says. However, I think the OP is worried about a totaled vehicle. In which case, they do take into account the price of similar vehicles. (ask me how I know)

 

[Tractorat]

No dealer uses the Kelly Blue Book except possibly in their restrooms. Dealer's use a "black book. "

Im not in the used car business so I dont know what the "black book" is. But if you are trading a car in, they will start out with a certain price that they will give you for your old car. But that is negotiable. By the time the deal is done, what they say they are giving you for your old car may be not even close to an average trade in value.

 

[HBarlow]

I sold cars for a few months after I retired from the Navy in San Diego and was finance manager in a Furd dealership in a small town near Lubbock some years ago. I know how it works. I've also been an insurance adjuster, know how that works also.

Sales managers are not stupid. They know that trade-ins often have major to minor problems that will require repair or replacement when someone trades it in. Problems are often the reason someone wants to trade a car or truck for a newer or different one. Sales managers use the insider black book not the consumer blue book and always buy trades "back of book. " They have to put money into repairs before they can put a car out on the lot. Why would anyone really expect them to pay top dollar for a car needing an expensive detail as a minimum and major repairs in many cases and then discount the new or newer vehicle traded for?

Some people of the entitlement generation believe everyone who tries to make a profit is dishonest, crooked, etc. while they think they should be able to deceive and cheat the dealershipi, commit warranty fraud, and other similar acts and that's okay.

 

[vastan]

I will look at a few other insurance companies and review their policies. My other primary concern is that many insurance companies will not cover extra options such as Ranch Hand bumpers and after market rims unless you add extra adder. I appreciate everyone's input.

Thanks,

 

[Tractorat]

Ive been friends with several used car dealership owners in my life, and you are correct. It works the same at new car dealerships as well. Although the new car dealerships tend to wholesale the used cars they take in to 2nd and 3rd tier car lots. So they take that into account when they take the trade in. The kelly blue book pricing is really just a guide for the new car buyer.

That being said, what does that have to do with how much an insurance company will pay when you total your car ?

 

[HBarlow]

Not much but I think you mentioned the KBB as a guide used by insurance companies. That's not what they use but I suppose that caused me to drift into what car dealers use, also not the KBB.

 

[HBarlow]

This is correct when they decide how much they will pay to get a car fixed. And in most cases, they will go with what the body shop says. However, I think the OP is worried about a totaled vehicle. In which case, they do take into account the price of similar vehicles. (ask me how I know)

I'm not sure what you meant. If damage to an insured vehicle is severe the adjuster has to determine replacement value in order to make the determination of whether to authorize and pay for repair or declare the vehicle a total. He/she will always seek a determination of value first. Once he/she has the value and salvage allowance in hand, from the same valuation service, the simple math is performed to make the repair or replace determination.

 

[Smokin' Larry]

Hey Vastan check Grundy's new MVP Program. They are insuring daily drivers now. Worth a look. http://www.grundy.com/

 

[Tractorat]

I'm not sure what you meant. If damage to an insured vehicle is severe the adjuster has to determine replacement value in order to make the determination of whether to authorize and pay for repair or declare the vehicle a total. He/she will always seek a determination of value first. Once he/she has the value and salvage allowance in hand, from the same valuation service, the simple math is performed to make the repair or replace determination.

Well, I think we are both assuming different variables in the process. I dont disagree with anything you said.

 

[Road Dog]

To get back to the OP; some insurers will insure for "appraised value". You need to pay for an official appraisal. It's used for cars that are old or rare. I have no idea if that's different than "agreed value". I'm sure that some insurance companies estimate with model and year and have no regard for options or original purchase price.