Insurance quote - Farm Bureau - Am I dreaming?

[Gregory M.]

Re: Thanks for the additional info & questions to

"I'll be sure to ask the questions."

As an attorney who has handled more than my share of casualty claims in 19+ years, don't just ask the questions...get it in writing.

I have insured at least one (1) collector continously since 1984 and would not dream of anything other than collector car insurance. I am not familiar with the Farmers Bureau coverage in which you refer. If it is NOT collector specific coverage I would advise you to get all representations in writing.

Most importantly...READ YOUR POLICY ONCE IT IS ISSUED! This is something most people do not do because "...they were told..." this or that. Once the claim occurs all that exists between you and your carrier are between the four corners of the pages of your policy. If you misundertood, or your agent did not present you with accurate information, well unfortunately, then it is too late.

GM

[Dick W.]

Re: Thanks for the additional info & questions to

We have had Farm Bureau for many years with excellent results. The few claims (hail, collision with deer, etc) were handled promptly to my satisfaction. I shop my insurance every 24 months and they have consistantly been the cheapest of the major insurance companies. When I moved my insurance to them it saved me several thousand dollars the first year. I have home owner's, umbrella, business auto, private auto, and farm with them

[Bruce B.]

Re: The distinction lies in the fine print...

For what it's worth I have had my Corvettes insurred with State Farm Insurance for many years. The premiums are about 60% lower then the "Collector Car " insurance companies and there are NO restrictions as far as mileage, etc. Each policy has an agreed upon value in case of total loss.
They provide all my insurance which helps keep my total cost of insurance sort of under control.

[Chris Patrick]

Re: The distinction lies in the fine print...

Many, many years ago, several people in a club I was in switched to Farm Bureau for what was outrageously cheap insurance. Of course, there was basically only JC Taylor's and regular insurance at the time, and Taylors was restricted so much most Corvette owners couldn't use it.

But in comparing prices, I don't find Haggerty's that great of a bargain. Yes, they will pay the full agreed value, however, they aren't really that much cheaper than regular insurance (which is a crap shoot on a collector or classic car) but is loaded with restrictions. I know most consider Haggerty's the favorite but there are constant disagreements on what their policies cover on mileage and driving. Some have no restrictions, others have mileage, and others have place (no driving to work). Haggerty's web site is not completely clear and isn't valid anyway since that is not the policy.

Grundy seems more open and less restrictive on their site, but it seems that few ever stand up for them and there have been people complaining about them.

American Collectors is much cheaper but is clear on their 2500 mile restriction and is pretty restrictive on the types of driving.

I'm curious why you see so few talking about having Grundy or American Collectors.

And I wonder when the abuse of collector insurance, which the risk is based on a car driven very infrequently and used more as part of a collection that out cruising around Friday and Saturday night.

BTW, on of the TV insurance commercials claim Friday evening is the highest risk to drive, yet how many cruises are Friday night? Wonder when the collector insurances put a restriction on Friday night driving?

[Page C.]

Re: Thanks for the additional info & questions to

One other thing to keep in mine is that with Hargerty's and others that insurer cars under classic car policies is that the "Liability" part is only paid once. Since this is the largest part of the premium and you have more than one car insured, this can be a BIG savings.
Regards
Page

[Jack W.]

Re: The distinction lies in the fine print...

Mr. Anderson:

You advised in your above post that:

"I have my policy from Farm Bureau in front of me. It clearly states the following. Payment for Loss: Payment Basis of Actual Cash Value, Stated Amount Value or Repair or Replacement Cost as INDICATED in the declarations. What is indicated in my dec sheet is the Stated Amount. Further along under Stated Amount Limits it states : The Stated Amount Limit is the limit you and we ageed to at policy inception or subsequent date."

I have, in my career, done a great deal of "coverage" work for insurance companies where the work involved the matter of the existance and amount of coverage available for a claim - in other words, I have read and interpreted the coverage available under thouhsands of insurance policies, including personal auto. I am not posting this because I have an odd desire to debate you over your beliefs as to what your insurance policy covers, and how. I only wish to post, for the record here (should other folks read this topic) on a topic I know a little about.

You advise that your policy provides: "The Stated Amount Limit is the limit you and we ageed to at policy inception or subsequent date." I don't disagree, I am quite sure you get to have input as to what is shown as the "Stated Amount" in your policy's Declarations - but the key here is just how the [defined] term Stated Amount operates with regard to the insurer's obligation. You also state that: "I have carefully re read all of the stipulations and it agrees with my inital assesment that if I or somebody totals the car or it is stolen etc I will be paid the STATED AMOUNT less the deductible." Does you policy really say that, in the event of a total loss, you will be paid the "Stated Amount"? Or, does it say you will be paid UP TO the Stated Amount, or NO MORE THAN the Stated Amount, or that the insurance company will pay the lesser of the Stated Amount or the cost to repair the covered auto not to exceed the "Stated Amount" or the Actual Cash Value? If you so much as SEE the phrase "Actual Cash Value" floating around in an Agreed Value policy, you should get very suspicious.

The thing is, the insurance industry itself uses the the phrase "Stated Value" or "Stated Amount" coverage to mean something quite different from "Agreed Value" coverage; so when I see someone proclaiming that they have "Stated Amount" coverage for $xx and what a great deal that is compared to the well-known Agreed Value insurer who quote at $xxx" I just have to cringe. Unless you have something that operates like agreed value coverage even though it is [incorrectly] called stated value coverage by the insurance company [quite doubtful], you cannot sleep as easily as you had hoped you could.

Of course, I wish you well and good luck whowever you choose to insure your Corvette.

[Richard S.]

Re: The distinction lies in the fine print...

Jack,

That is a very helpful and informative post. For those without an insurance background, the "suttle" differences don't mean much to people until they have a loss....and some folks never even have a loss. Dealing with "Direct Writers"...Insurers who deal directly with the unsuspecting/uninformed public, or who deal through their own agents....is just asking for trouble. The "Direct Writers" only have their own interests in mind.....as do most Insurers. Unless you work with an independant Insurance Broker you will not be properly represented or advised. Because most people never even make a claim, the importance of having a Broker negotiate the right coverage is seldom, if ever, appreciated. For the time being, it's just not the way things are done by most of the uninformed/unsuspecting insurance buyers. So those who read these posts are now well advised and fully informed....nice work.