Insurance

[Bill M.]

Re: Insurance

Guys, not to be a jerk, but just so you know, I am a lawyer and by training and by termperment, I read insurance policies. I assure you the Texas collector car policy I received from State Farm in April 2010 does not have these same definitions. It was the lesser of the stated value or ACV. I did not keep the policy after I cancelled it and reinstated Haggerty. So I cannot quote you the exact language, but it doesn't change the point that each insured needs to make sure the policy provides the coverage you think (and in my case, what the insurance agent incorrectly said) it has. And it has been said here many times.

Policies vary by state and you have to read yours to know. If yours reads the way Bill's does, great for you. What you should not do is base your decision on what your insurance agent says about their policies. Read them, and if in doubt, have a lawyer read it for you, before you have a loss.

My State Farm agent was flat wrong on the policy--fortunately I didn't have a loss in the month that lapsed from the time I cancelled the Hagerty policy, waited for the actual State Farm policy to arrive in the mail, read it, and went back with Hagerty.

The collector car policy State Farm gave me would never have paid the stated value unless it was less than ACV. The policy definitions in the collector car policy State Farm issued to me, border on deceptive as I doubt any insured (myself included) has an interest in capping the insurer's liability to the LESSER of: (i) ACV or (ii) the stated value on a collector car.

Paul,

I think it's important for you to post your experience; particularly since it is different than my experience with State Farm. This is a great use of the TDB and may benefit many.

My agent was clueless about a Collector policy. He had to call the Michigan state office. I didn't know what I had until after the policy was paid for and showed up in the mail.

Here's what I think you need to look for in a collector or antique policy from State Farm:

1) Vehicle value needs to be on the Declarations Page. I had to get an appraisal to establish that value.

2) An endorsement (6171CD) for Antique or Classic Motor Vehicle. My copy of 6171CD looks to be universal, not just for Michigan. This endorsement is referenced on the Declarations Page. The wording I posted above is from 6171CD.

Why am I staying with State Farm? Because for my '92, State Farm is cheaper than American Collectors and Hagerty. It's also less restrictive on driving and garaging. I'm comfortable using State Farm on my '92 because I think most repair facilities could handle repairs (similar body and paint to current cars). I would be nervous about a SF adjuster, not familiar with the oldies, deciding what they would cover for bodywork and paint on my '65 (original fiberglass and lacquer). I'm wondering what the specialty insurers do about lacquer...

Bill

[Paul S.]

Re: Insurance

Paul,


Here's what I think you need to look for in a collector or antique policy from State Farm:

1) Vehicle value needs to be on the Declarations Page. I had to get an appraisal to establish that value.

2) An endorsement (6171CD) for Antique or Classic Motor Vehicle. My copy of 6171CD looks to be universal, not just for Michigan. This endorsement is referenced on the Declarations Page. The wording I posted above is from 6171CD.


Bill

I am not sure what the basis is for thinking the endorsement 6171 CD is a universal endorsement. You're concluding it is, I suspect because it doesn't have a state name/abbreviation in the form number or you read that somewhere?

I think we agree that regardless of the insurer, what they call the policy and what you see on a declaration page, it's crucial to read the policy and all its endorsements to make sure you have the coverage you expect. It isn't just looking at the declarations page for a stated value. You have read yours, as you should.

And to be clear, the Texas policy issued to me had an endorsement for antique or classic motor vehicle and a stated value on the declaration page. In the coverage section of the endorsement, it said what I indicated in my posts that State Farm's liability was to pay the lesser of the stated value on the declaration page, or ACV.

I also called State Farm and went through the policy and its endorsements. State Farm confirmed I wasn't missing something, and agreed that the policy only obligated State Farm to pay the lesser of ACV or the stated value, but tried to sell me on this notion: Mr. Seiler, based on the pictures of your beautiful 1967 Corvette, we have no doubt State Farm would pay off at the Stated Value you requested on your declaration page.

My mother did not raise a fool, who would believe that line of sales puffery.

[Bill M.]

Re: Insurance

I am not sure what the basis is for thinking the endorsement 6171 CD is a universal endorsement. You're concluding it is, I suspect because it doesn't have a state name/abbreviation in the form number or you read that somewhere?

Exactly. It doesn't have any indication that it is for Michigan.

I think we agree that regardless of the insurer, what they call the policy and what you see on a declaration page, it's crucial to read the policy and all its endorsements to make sure you have the coverage you expect. It isn't just looking at the declarations page for a stated value. You have read yours, as you should.

And to be clear, the Texas policy issued to me had an endorsement for antique or classic motor vehicle and a stated value on the declaration page. In the coverage section of the endorsement, it said what I indicated in my posts that State Farm's liability was to pay the lesser of the stated value on the declaration page, or ACV.

I also called State Farm and went through the policy and its endorsements. State Farm confirmed I wasn't missing something, and agreed that the policy only obligated State Farm to pay the lesser of ACV or the stated value, but tried to sell me on this notion: Mr. Seiler, based on the pictures of your beautiful 1967 Corvette, we have no doubt State Farm would pay off at the Stated Value you requested on your declaration page.

My mother did not raise a fool, who would believe that line of sales puffery.

Thanks for clarifying. That is clearly not an agreed value. I understand that the warnings about State Farm are valid. Thanks.