Auto Insurance Claims: which insurance is better?


Question
I just purchased a sports car, a Mercedes 2009 SL65 which is a 5 year old V-12 convertible.  Original price: $204,000 but I only paid a fraction.  Anyway, my regular company, Allstate, has excluded that car from coverage.  Hagerty, the best known sports car insurer, also won't take it because I intend to drive it more than 20 times per year.  Well, wouldn't you?  

Nationwide and Grundy will insure the car.  Grundy is a little less money, allows a stated value and has better deductibles.  Neither has a local agent.  Advice?

Answer
Hi Steve,

It is not a problem to do business with an insurance company by mail/email/telephone. So not having a local agent in sot an issue. Just be sure that any company you select is licensed to do business in your state. You can do that at your state insurance commissioners website.

There are two types of policies generally utilized in these situations. You mentioned the "Stated Value" policy. This is often confusing to people who think that that means if the vehicle is totaled that the amount paid is the stated amount. In fact the stated amount is only used to determine the premium to be paid. But, in the case of a total loss the insurance company will still determine the actual cash value of the car at the time of the loss. So the only difference between a regular policy and a stated value policy is how the premium is determined.  

The other type of policy is called an "Agreed Value" policy. This is where you and the insurance company agree on an experienced vehicle appraiser to determine the value and both agree on the appraised amount. That value is used to determine the premium and is also the amount that will be paid in the even of a total loss. With an agreed value policy the vehicle should be re-appraised every year or two to be sure the premium and the amount of coverage is correct.

Generally, only those insurance companies that specialize in insuring classic/antique vehicles offer an agreed value policy. All others only offer the standard personal auto policy or the stated value policy.

I hope this helps
Richard Hixenbaugh