[Calvin C]

Hi everyone,
I was wondering what people are paying and who they use to insure their MP4?
Im getting quoted by statefarm for $1,250/6 months ($2,500/yearly) with $1,000 deducatable, actual value (not agreed value unfortunately) for 42 yr old man with clean driving record. They originally quoted me $1,700/6 months ($3,400/yearly) cuz they didnt have mclaren in their computer to quote me. They called me back and thats what they said with all discounts for 2 other cars, home with umbrella coverage. Im specially interested in NJ residents. Im in central NJ. My 2012 gtr is only $700 or so every 6 months. Strange that the mclaren is so much more. I was looking for a 2012 mp4 for about 200k value for the insurance.

thx,
lc

 

[andy c]

Calvin,just wanted to know how it works over there? as you are surprised that its 2,1/2 times more expensive,yet the car is 2,1/2 times more expensive to replace or repair than your GTR.That would be the norm over here when you get to a performance level its all about the value is it not?

 

[nh4]

Calvin, do a search for "State Farm" across the forum. I'm not saying that to be a wise ass, but rather I remember there are a few insurance related threads where several folks here mentioned rates and some advice on how to get a 12c insured by State Farm.

-nh4.

 

[LimeyBloke]

Calvin,just wanted to know how it works over there? as you are surprised that its 2,1/2 times more expensive,yet the car is 2,1/2 times more expensive to replace or repair than your GTR.That would be the norm over here when you get to a performance level its all about the value is it not?

Andy,
What most of these people do not seem to understand is: In the event of a total loss (which isn't that hard to accomplish with a moderately bad accident) you will only be paid what is called 'actual cash value' (book value) for your loss. The insured/owner might tell his insurance what his car costs when he purchases his policy, BUT what the insurance company will settle your loss for is the 'actual cash value' of your car (basically it's trade-in value), which is going to be waaaay lower than what you purchased your car for. The only type of auto insurance that will pay you the FULL value of your car's loss is called: Agreed Value Insurance, which many companies will write, but it does cost more than regular policies like State Farm Insurance.
With an Agreed Value policy ...... You, for example, value the car at $275k and if you have a total loss.... your insurance company writes you a check for the complete amount ($275k), there is no dickering, period !! Some people like to roll the dice and tell themselves, a total will never happen.
Example: My buddy smacked up his Dodge Viper, cracked the front clam-shell hood and also bent the frame; it didn't look that tragic ..... but, the insurance company declared it a 'total' due to the frame damage ...... He received a check for his entire purchase price; if he had only 'standard' insurance he would have gotten a check for half that amount.
I'd rather be safe than sorry.

 

[Calvin C]

Hi Andy,
I hear ya, but I got afew others who were also quoted in NJ for lil under $2100/year. Not sure why mines is higher since we r same age and also have other cars and house under same insurer. I know its only $400+ more, but money is money, if I can save it, why pay it.

nh4, no prob. I saw some threads on some quotes, but didnt see anything, but ill try searching state farm.

LimeyBloke, I did ask about agreed isnted of actual value. They say they only cover actual/cash value. They dont do agreed at state farm. Or at least my agent's state farm. I also looked elsewhere for exotic insurance in NJ. Found one that was $3,723/yr for agreed cost. Who do you use Limey?
thx,
lc

 

[LimeyBloke]

Hi Andy,
I hear ya, but I got afew others who were also quoted in NJ for lil under $2100/year. Not sure why mines is higher since we r same age and also have other cars and house under same insurer. I know its only $400+ more, but money is money, if I can save it, why pay it.

nh4, no prob. I saw some threads on some quotes, but didnt see anything, but ill try searching state farm.

LimeyBloke, I did ask about agreed isnted of actual value. They say they only cover actual/cash value. They dont do agreed at state farm. Or at least my agent's state farm. I also looked elsewhere for exotic insurance in NJ. Found one that was $3,723/yr for agreed cost. Who do you use Limey?
thx,
lc

Calvin,
You are correct, State Farm does not write agreed value ...... BUT, many specialty companies do: I use Heacock Insurance...... an agreed value for about $3100 for the full retail price I paid (brand new). However, I am ions of years above you .... and that makes some difference in rates, you know.

 

[Calvin C]

"However, I am ions of years above you .... and that makes some difference in rates, you know."
Heheh
lc

 

[andy c]

Thanks Limey,its just common practice over here to pay for insurance that will put you in the same car again ,how backward are we

 

[Calvin C]

Got a quote back from Heacock. Estimated to be $2,877.67 on a used 2012 mp4 for $200k agreed value.
I may just go with Heacock if its only $300-$400 difference per year.
Let me get this clear though. If I insure it for $200k agreed value and 2 yrs later, its worth $160k and I have an accident, will they pay back $200k?
thx,
lc

 

[LimeyBloke]

Got a quote back from Heacock. Estimated to be $2,877.67 on a used 2012 mp4 for $200k agreed value.
I may just go with Heacock if its only $300-$400 difference per year.
Let me get this clear though. If I insure it for $200k agreed value and 2 yrs later, its worth $160k and I have an accident, will they pay back $200k?
thx,
lc

Check with Heacock to be 100% sure ...... I've never had a claim, but that is what you are paying for: A guaranteed payment for the agreed amount !!! Doesn't matter what the car is worth on the 'open market'.
Here is an explanation, Calvin:
http://www.newsday.com/classifieds/cars/classic-car-insurance-get-an-agreed-value-policy-before-the-next-storm-1.4707703

 

[Walt of Destiny]

Calvin, I have the State Farm policy very similar to what you have. Including the "not in the computer part" the VIN came back as not valid. It is correct that SF doesn't write agreed value and the agreed value policies I got quoted were in the $7k neighborhood for the 300k value. The agreed upon value stays for the life of the car. AV policies were designed for classic collector cars that are worth the least they are going to at the moment. No further depreciation is going to happen so the amount you would get in a total situation would the agreed value year one and year 20. Your premiums will vary. One other consideration is that what I was quoted was dependent on a very limited mileage allowance, membership in a car club, and statement that it would be used mostly to take to shows and that's it. This was Hagerty's considering that many of us drive them daily, it was a compromise I was not willing to make. Most other insurers aren't willing to touch a supercar. Btw, most of my regular cars are about the same as the Mac for full coverage. Keep in mind that the People's Republic of New Jersey is an insurance company's worst nightmare, we're lucky to get coverage at all.

This comes back to the tortured depreciation conversation. You buy a 300k car, in 6 months it's worth 230. If they pay you 230 for a totaled car, you could crawl from the wreckage into a very similar car( my apologies to Dave Edmunds) which is karmic. Otherwise agreed value policies would be the ultimate hedge against depreciation on supercars. Contingent, of course, on one very nasty detail. Please for the love of God I do not want to discuss depreciation. It was just an example for illustrative purposes.

 

[LimeyBloke]

........This comes back to the tortured depreciation conversation. You buy a 300k car, in 6 months it's worth 230. If they pay you 230 for a totaled car, you could crawl from the wreckage into a very similar car( my apologies to Dave Edmunds) which is karmic. Otherwise agreed value policies would be the ultimate hedge against depreciation on supercars. Contingent, of course, on one very nasty detail. Please for the love of God I do not want to discuss depreciation. It was just an example for illustrative purposes.

I do believe that when you buy that '300k car' ..... You would value the car on your 'agreed value policy' for $300k. If six months later in the open market it's worth only $230k ....... Makes no never-mind ...... You receive a check in the amount of $300,000. Now, you go out and purchase a brand new replacement, that you order, factory fresh!

 

[Calvin C]

Thx Walt, I also verified with Heacock. The 200k coverage will be the life of the coverage even with depreciation...etc. I agree regarding we are lucky to get coverage with SF at all in NJ.

I inquired what it would cost to cover a 2012 gt-r and it was cheaper then State Farm.
Heacock was covering it for AGREED value of $85k for under $1,100. Im paying $649/6 month ($1,300/yr) at SF. If I kept both gtr and mclaren under heacock, the quote is $3,287.32. Thats only $409.65 more. I jsut realized my deducatable at SF is only $500 and heacock is $1000 for the gtr.
lc

 

[Walt of Destiny]

Thx Walt, I also verified with Heacock. The 200k coverage will be the life of the coverage even with depreciation...etc. I agree regarding we are lucky to get coverage with SF at all in NJ.

I inquired what it would cost to cover a 2012 gt-r and it was cheaper then State Farm.
Heacock was covering it for AGREED value of $85k for under $1,100. Im paying $649/6 month ($1,300/yr) at SF. If I kept both gtr and mclaren under heacock, the quote is $3,287.32. Thats only $409.65 more. I jsut realized my deducatable at SF is only $500 and heacock is $1000 for the gtr.
lc

Any mileage restrictions?

 

[Calvin C]

from heacock, its 3k miles for each car. Ive had my gtr for 2 yrs now at SF. I put 5k on it so 3k/yr is fine for me.
As for gtr at SF, i believe its 7500/yr with 500 deducatable. However the mp4 at SF is quoted at 2500/yr for $1000 deducatable and i believe 1k/yr. I said "1 yr"? They said it didnt matter if I put 7k/yr. But i doubt that if something happened, they prob would not cover it. Ill have to get it more clear with them. So its either 1k/yr or 7500/yr.
lc

 

[Walt of Destiny]

from heacock, its 3k miles for each car. Ive had my gtr for 2 yrs now at SF. I put 5k on it so 3k/yr is fine for me.
As for gtr at SF, i believe its 7500/yr with 500 deducatable. However the mp4 at SF is quoted at 2500/yr for $1000 deducatable and i believe 1k/yr. I said "1 yr"? They said it didnt matter if I put 7k/yr. But i doubt that if something happened, they prob would not cover it. Ill have to get it more clear with them. So its either 1k/yr or 7500/yr.
lc

Interesting. Firstly, my similarly priced SF policy has no mileage restrictions. I declared it as a daily driver.

And secondly, I'm mid way through my second month and I'm north of 2500 miles. Maybe it'll wear off. But unlikely. Given it'll be in the warehouse 4 months of the year, I'm still way over. I believe that many on here also enjoy their cars with irrational exuberance. Just sayin'

 

[Calvin C]

Thx Walt, Thats something I may have to consider. Maybe I will drive it more now that its a MP4!
lc

 

[cyclehead]

just a thought

one thing you must consider is that it is agreed value--that means you and insurer agree on valuation--preventing fraud i'd suspect-also you must keep on top of the actual value and adjust accordingly--god forbid prices should actually climb on your car you need to raise agreed value to cover the same price point--this is a issue of some importance as based on what happened recently in the auctions some cars dramatically increased in apparent value and coverage should reflect the same----see F40

 

[Walt of Destiny]

one thing you must consider is that it is agreed value--that means you and insurer agree on valuation--preventing fraud i'd suspect-also you must keep on top of the actual value and adjust accordingly--god forbid prices should actually climb on your car you need to raise agreed value to cover the same price point--this is a issue of some importance as based on what happened recently in the auctions some cars dramatically increased in apparent value and coverage should reflect the same----see F40

You pose an interesting thought experiment. If you have a regular policy, not agreed value, it is based on either BB valuation or professional appraisal. If a car appreciated instead of depreciated, the insurance company is caught paying out more on a loss than they figured the premiums on. Am I correct on that? Changes the total loss calculation etc.

 

[cyclehead]

welll

I would not bet on the insurance company being honest and open about paying off a increased value above the fmv or somesuch nonsense. I doubt that the insurance industry has automatically increased the value of ford gt's or ferrari f40's based on the auction results recently though it would seem these values would have risen. The agreed value coverage is something I have seen little feedback from anyone actually getting a payout. FWIW imho