Appreciating Value

As time goes by, our cars appreciate in value; given this, does anyone know of a classic car insurance company that issues policies which appreciate the value of the car over time?

Thank you in advance for any helpful answers.
 
Danny,
Do they require an updated appraisal when they increase the coverage?

Thanks

No, Hagerty does not require an appraisal. I have been with Hagerty for nearly fifteen years and have been very happy with them. They have a chart, or some sort of a system they use for valuation and as long as you are within their guidelines for value, you can insure your car for the amount you desire.

Remember two things, collector cars being pampered and used sparingly by most people, it is in the best interest of an insurance company to insure these cars for a high value, because they charge you based on the value and their risk is small.

Also, it is up to us to know what our cars are worth and insure them for proper values. If you improve your car, send them photos and increase your amount of coverage, if necessary.
 
I have my '59 Comet Olds insured with Hagerty for $28K. That was my figure, and they never disputed it, as they had nothing to compare it to.

I also had my '72 Malibu convertible insured with them for $21K. Every year at renewal time, they suggested that the figure was too low. This year, I bumped it up to $30K at their suggestion, and it appears from our discussions that they would have been receptive to even a higher figure than that.

Many years ago when I first insured the Malibu with them for $18K, if I recall correctly, anything with an agreed value of over $30K required an appraisal. Anything lower did not, just photographs. Those figures probably have changed by now.

Obviously they have a data base on most collectible car values based on auctions, dealers, etc., on which to base their figures on the different condition categories. Procars, on the other hand.......not so much.

But I have to say they have been very easy to work with on both of my cars.
 
I have all mine under insured. values them all at 5000. cost me 5 bucks a month then with state farm. if anything happens to them I figured I can go out and buy me one nice car. you pay a lot for that extra amount you don't intend to ever collect on.
 
When I owned my 1963 Pinner Chrysler, I had it insured for $30,000, after having a discussion with the underwriter. I explained that it was an original car, with custom coach works, and a rear end collision could easily coast 10 or 15 thousand to repair, since there are no off the shelf part available for the car. They asked for pictures, which I provided, and they were agreeable to the increase of value. Originally, it was insured for $10,000, but that was before it was running and driving. When I sold it, I just through out a number that I thought equaled the amount that I had into the car. When I added it all up, I realized that I had miscalculated by a large amount. The only thing that I can say, is that it went to a good home, and that Nick is bringing the car to the next level.
 
A representative from American Collector's Insurance sent me an insurance quote after I posted my initial question. I have never heard of them before, so I am not 100% confident in them. Over the phone, the agent told me that they automatically increase the stated/agreed value of the vehicle by 4% every year. I am going to request this promise in writing before I agree to do business with them.
Does anyone have any experience with, or knowledge of, this company?
 
As time goes by, our cars appreciate in value; given this, does anyone know of a classic car insurance company that issues policies which appreciate the value of the car over time?

Thank you in advance for any helpful answers.

Who told you that these things appreciate in value??
 
Reality check

Kurt, I am glad you had the guts to say it first. I have 16K into our 1969 Superior Royale and 10K into our 1969 Superior Sovereign combo and both Caddys are adored by many yet no one will make me an offer for anywhere near what I have into them or near the appraised value. I believe it is what ever someone is willing to pay and in this crowd most coach's are not considered to be worth paying anymore than at the most 3-5K for the ones that come up for sale if they are really nice. Our Royale appraised at 16K for replacement and 9.5K when I took out a loan against it. The majority of coach's that have come through the forum usually get the "I would give more than 1500 for that" am I right or not?
 
I have all mine under insured. values them all at 5000. cost me 5 bucks a month then with state farm. if anything happens to them I figured I can go out and buy me one nice car. you pay a lot for that extra amount you don't intend to ever collect on.

I am inclined to agree with Ed's approach. Up here in the frozen north my cars are insured for replacement value, which unlike sales value as most know is significantly more. No different than a painting. Having said that, nothing is free, and my vehicles lead a pampered life. Knowing the risk of loss is very low, maybe insure them all for 5 bucks, knowing the risk of loss is very very small.
 
Correction

Kurt, I am glad you had the guts to say it first. I have 16K into our 1969 Superior Royale and 10K into our 1969 Superior Sovereign combo and both Caddys are adored by many yet no one will make me an offer for anywhere near what I have into them or near the appraised value. I believe it is what ever someone is willing to pay and in this crowd most coach's are not considered to be worth paying anymore than at the most 3-5K for the ones that come up for sale if they are really nice. Our Royale appraised at 16K for replacement and 9.5K when I took out a loan against it. The majority of coach's that have come through the forum usually get the "I would give more than 1500 for that" am I right or not?
In my quotes I meant to write " I would not give more than 1500 for that" and most often sellers really do not have a firm grasp of the reality of restoration costs or the difficulty of sourcing hard to find parts, even crafts people who are willing to work on old cars for an affordable rate. In some eyes the beauty, romance, uniqueness of a funeral coach, limousine, ambulance, with the long lines and massive presence seems to skew judgement.
 
appraised value, replacement value, and actual sales value are 3 entirely different numbers, and have no relationship to each other. Appraised value, is what an appraiser sets on the vehicle for insurance purposes. Replacement value, is what the insurance company says that you can purchase a similar vehicle for, in like condition. Actual sales value, is what the car will bring in an auction setting. It may be higher, or lower than either of the other 2 values. I have seen 2 people get into a bidding war, where their ego's and wallets were huge, and neither was going to back down until they won. In these type of bidding wars, only the seller and auction house are the winners. Other times, I have seen cars sell for thousands less than was perceived as the pre auction estimate, because the car didn't appeal to any of the bidders. Private sales of restored cars is extremely difficult, since the seller is trying to recoup as much of his investment that he can, and the buyer is attempting to hold onto as much of his cash as he can. Only with careful negotiations can a deal be struck. If neither is willing to budge very much, one party will walk away, and start looking for their dream car elsewhere. In the case of Commercial Chassis cars, there isn't that large of a pool of buyers or sellers, so it makes it even more challenging for all, unless it is a particularly unique vehicle with a high desirability factor, such as a 1959 Cadillac anything.
 
Each year, I look at the value of the hearses with what I have listed with Hagerty, some years I increase the value by $500.00.
Hagerty lets you set the value, I was questioned one time, years ago I insured the '78 Transport Ambulance for $20,000.00 and they called questioning - "only 10 made, not sure how many survive..." etc...
When I have increased the value, the dollar amount added to my premium was minimal.
 
I use Grundy (DBA Philadelphia Insurance Companies), because the apples-to-apples rates were much better than Hagerty. Bear in mind that currently though, none my collector cars are pro cars. As for appreciating value, they do not contact me or adjust it automatically. I am responsible for updating it, which I do about every 1-2 years, by calling them. They carry an agreed upon value, which I provide them mostly based on what I think I can replace a car for. They do not require an appraisal either, only current photos by email.
 
I use Grundy (DBA Philadelphia Insurance Companies), because the apples-to-apples rates were much better than Hagerty. Bear in mind that currently though, none my collector cars are pro cars. As for appreciating value, they do not contact me or adjust it automatically. I am responsible for updating it, which I do about every 1-2 years, by calling them. They carry an agreed upon value, which I provide them mostly based on what I think I can replace a car for. They do not require an appraisal either, only current photos by email.
I've had Grundy coverage on my restored police Mustang for the past 14 years and they have always bumped my value by a small amount each year (with corresponding increase in premium). This still didn't keep pace with appreciation so I requested an almost 30% bump last year. They asked and were satisfied with the information I had on three private sales plus video of an auction of similar vehicles and gave me the increase. I've been very happy with Grundy so far.
 
you want to find the value of it total it out. when they pay you you will get the not our fault you over insured it.
 
you want to find the value of it total it out. when they pay you you will get the not our fault you over insured it.

Agreed value insurance will pay the face amount of the policy. That is why it is called "agreed value", because you and the insurance company agree to a value in advance, and the premiums are based on that amount.
 
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