Any Jaguar owners have their auto insurance policy set up as "Agreed Value" vs. "Actual Cash Value" for replacement?

I own a 2009 Jaguar XKR Portfolio Editon Convertible. This Jaguar is considered "rare" and qualifies for an "Agreed Value" with Safeco Insurance. Cost is an extra $364.00 per year on the premium.

Very cars will qualify unless they are classic or rare limited editon automobiles.

Jaguar has 16,900 miles and Safeco has valued the car at $45,000 for an "Agreed Value" in case of damage to the car.

99% of most auto insurance policies are listed as "Actual Cash Value".

Thanks in advance.

 

I have experience with agreed policies but only on classic/antique cars.

 

Richard,

Since you drive all your special interest toys (they're not "classics" yet) and don't limit their use to parades and car shows, you made the right decision to buy agreed value conventional auto insurance instead of collector or special interest insurance, such as products offered by Hagerty, Grumby, and similar companies. Buying an insurance policy from those companies for a special interest car that is driven infrequently can be a disaster because of the limitations on use; it is easy for them to deny coverage in the event of a claim. These policies have low premiums because they provide limited coverage. Buyer beware.

Stuart

 

Stuart:

I am not sure what mileage Safeco will limit me to on annual basis, but I have asked that question to the insurance agent. No response yet, probably tomorrow or Friday. We insure 5 vehicles with Safeco and over the past 2 years put 3500 miles on the Jaguar XKR.

I would expect to possibly put 3500 to 5000 miles on the Jag at best annually.

What do you think of the $45,000 agreed value?

 

Richard,

I doubt that Safeco will limit your annual miles. They based your premium on the number of miles you reported to them, among other factors. If you exceed those miles, they may increase your premium upon renewal, but that's just one of many factors determining the renewal premium.

Agreed value is anything you want it to be, within reason, that's acceptable to the underwriter. You'll pay a surcharge depending on how much that agreed value exceeds the KBB or other valuation guide used by the underwriter. I'm pretty sure that annual mileage doesn't affect the surcharge.

I haven't checked, but I suspect that KBB and other valuation guidelines for my XKR would show a dealer retail price under $40K. But try to find one exactly like mine at any price. That's why KBB and the other guides are unrealistic. They're useful mainly for mass market vehicles, not rare limited edition models. I won't sell mine for $45K and I doubt that you would, too. Mine's a keeper.

Stuart

 

In addition to all the advice and information above, nearly every insurance company has several "riders" that can be purchased, such as these...
100% replacement coverage
Diminished Value coverage (you can ask for this regardless if you bought it prior)
.... and there are some more that I can't think of right now.

 

There is no need to buy diminished value coverage in Georgia, since the Georgia Supreme Court decided in 2001 that insurance companies were liable for those claims as a matter of common law.

In most other states, a DV rider would be needed to make a first party claim (one against your own insurance company under contract law). A DV rider would not be needed to make a third party claim (one against the other driver's insurance company under common law).

A DV claim should be made immediately after your car has been repaired, since the repair cost is a significant factor in determining it's fair market value at that time. DV is the difference between the FMV immediately before and immediately after the accident. One way to know what your repaired car is worth is to take it to CarMax and show them the repair invoice and get their offer in writing.

Stuart