Insurance questions

[Naio]

I've been shopping for a new van, and have run into a problem.

Out west, even if you plug in the zip code, Blue Book values for used vans are about 33-50% of what people actually pay. But insurance only values the trucks at Blue Book.

This is bad enough with my current van, which has only reversible mods to the interior (and some $$ suspension work). It would sell used for about the money I have in it, but KBB value is less than half that.

My plan for a new rig, though, involves more extensive upgrades. I will spend a total of about 4x KBB. I could sell it for what I will pay, and quickly, but I do not like to be so underinsured.

For classic cars, etc., my insurance company can 'insure to value' at a custom, non-KBB value. But -- and here's the catch -- not if it is a daily driver. Only for a second or third car.

Have any of you looked into this? Found a solution?

[SoCalDesertRid1]

I have multiple policies with State Farm. They're not the cheapest, but they don't give me any carp when it comes time to pay on a claim and I never need to get a lawyer to get a fair payment from them. They're a good company to do business with.

[Naio]

SoCalDesertRider wrote:
In a total loss claim on the vehicle, the insurance company will add in the value of aftermarket modifications and additions to the vehicle when they determine the overall value of the vehicle. Both times I've made total loss claims on vehicles (one burned down in a fire, the other was in an accident), the insurance company valued the vehicles much higher than I could ever have sold them for the day before they were totaled.

That is good news, but I wonder if it might depends on the company and policy. My current agent did not hold out any hope of that.

But, thanks to folks' advice in this thread, I contacted an independent agent who tells me that, through Progressive, they can get me the coverage I want. Thank you, everyone!

[SoCalDesertRid1]

In a total loss claim on the vehicle, the insurance company will add in the value of aftermarket modifications and additions to the vehicle when they determine the overall value of the vehicle. Both times I've made total loss claims on vehicles (one burned down in a fire, the other was in an accident), the insurance company valued the vehicles much higher than I could ever have sold them for the day before they were totaled.

[Naio]

Thanks folks. I didn't realise the options.

[Bionic_Man]

jrp wrote:
it depends on the insurance company, they each have slightly different guidelines from their Underwriters. But many will offer an "agreed cash value" policy instead of the default "actual cash value (book value)". The catch is, they don't have to agree with your version of the "agreed value". sometimes that takes an independent appraisal or documentation & receipts for the modifications. sometimes it requires a compromise, you meet them in the middle at a value you can live with, even if its less than what you think the real value is.

It helps to go through an independent agent with experience insuring modified vehicles.

Nothing to add, because I would say this is spot on. If your current insurance agent can't get you a policy that works for you, find one that will.

I switched from a captive agent to a Independent many years ago. Saved thousands of dollars doing so. Last year I had everything re-quoted through Allstate, State Farm, Farmers, and AmFam, and the Independent was still the least expensive with the best coverage.

[Mandalay_Parr]

I would find another ins co.

[jrp]

it depends on the insurance company, they each have slightly different guidelines from their Underwriters. But many will offer an "agreed cash value" policy instead of the default "actual cash value (book value)". The catch is, they don't have to agree with your version of the "agreed value". sometimes that takes an independent appraisal or documentation & receipts for the modifications. sometimes it requires a compromise, you meet them in the middle at a value you can live with, even if its less than what you think the real value is.

It helps to go through an independent agent with experience insuring modified vehicles.