Insurance quote - Farm Bureau - Am I dreaming?

[Jack U.]

It's been 10 years since I looked at insurance quotes on my cars and home. I felt it was time to look at them again since I just finished restoring my 1963 coupe.

I was told by a fellow club member in my social Corvette club (not NCRS) to look at Farm Bureau.

The rates on my daily driver and 2001 coupe were comparable to my existing company.

When I got to the 1963, Farm Bureau ($80.64) was drastically under Farmer's Insurance (with collector car insurance - $572) and Great American Insurance group (current company - $619).

Does anyone know why or have Farm Bureau?

I know I asked numerous times when meeting with the Farm Bureau agent and he told me "it's because the company knows that you don't drive the car much". This is true up until this point in time but I plan on appearing at a few shows this year within 100 miles from home.

I guess I'm look for opinions on if this appears to be genuine since I don't know the "insurance game" that well.

Jack

[Patrick H.]

Re: Insurance quote - Farm Bureau - Am I dreaming?

It's because they're insuring it like it's a 1963 Chevrolet.
Do not trust your agent.

Don't ask how I know this:

[Don H.]

Re: Insurance quote - Farm Bureau - Am I dreaming?

In my humble opinion, the only way to go is with a "collector car" company. I have been with Hagerty for about five years (2 old Corvettes) and look forward to getting my bill. Although I have never had a claim, others say they have are very satisfied. Don H.

[Terry D.]

Re: Insurance quote - Farm Bureau - Am I dreaming?

Agree with Don, go with a company that specializes in collector cars. I've had a claim with Hagerty on an antique boat and was very pleased with outcome. Have both my Corvette's with them now too.
Terry

[Richard M.]

Re: Insurance quote - Farm Bureau - Am I dreaming?

Jack,

It is likely a "ACV" policy. Actual Cash Value insurance is what your daily driver is covered under. If there's a claim, payment is based on todays repair costs based on basic appraisal data collected for millions of late model car claims. Did the agent ask you for an appraisal and photos to keep on file with them, and offer a document to ensure you that your costs would be covered? If he didn't it is probably a case of not telling you the entire story. I would guess that he's trying to get your "daily driver" business, and entice you with a super low rate on the 63 to get a policy written. Motto here: You get what you pay for. Ask him a question...if the car was stolen how much would you get for it and could you get it in writing? If he sidesteps you.....walk away.

I, like the others, also recommend you stick with collector insurance for the 63. I presently have 2 cars with a collector insurance company(Hagerty). Both are "stated value". I stated the amount of insurance I wanted on each and that determines the premium. Think of the premium as a rate calculation, i.e. premium $ amount per $1000 of value. I also had a 57 Century Coronado antique boat with them for many years for peace of mind. I've never had a claim but have much more confidence in them than a ACV underwriter.

A few notes, Hagerty requires the vehicle is in locked garage/storage space, pictures of the car, and pictures of it in the garage, estimated mileage driven/year, and some restrictions for use(they don't want you to use it like your daily driver cars). That's what they asked me for my state, others may vary. They also want information on your daily driver coverages to match certain limits. Their rates are fairly reasonable for the coverage and for peace of mind.

Rich

[Michael M.]

Re: Insurance quote - Farm Bureau - Am I dreaming?

Yes, it seems like they are insuring it at "book value" and if you have a mishap (whether it is your fault or not) they will gladly total the car out, hand you a few hundred dollars and take possession/ownership of the vehicle. With our Corvettes, that is the equivalent of no insurance at all in my opinion. You need a "stated" value policy where you and the insurance company agree on the value of the vehicle and it is stated in the policy. Every few years you should re-address the policy as the value of the vehicle may have gone up due to market pressures or vehicle improvements.

[GL Anderson]

Re: Insurance quote - Farm Bureau - Am I dreaming?

I have Farm Bureau on my Javelin with a stated value. No mileage limits etc. They do understand that collector cars are generally well taken care of and driven far less than a daily driver. The total premium is $49.50 PER YEAR. Yes I did my research and there are no strings attached as some of you infer. Total the car and I get the stated value. Just damage it and it gets fixed no questions asked. I suggest that you do your own research before you make a decision because in this case real knowledge is better than speculation.

[Jack U.]

Thanks for the additional info & questions to ask

I'll be sure to ask the questions.

Thanks Mr. Anderson. You confirmed that I was NOT dreaming.

[GL Anderson]

Re: Thanks for the additional info & questions to

Your welcome and I did have a claim with Farm Bureau on my Porsche 930 Turbo. My garage burned down but I got the car out before it was damaged. However the smog pump and associated plumbing had been removed and was destroyed in the fire. I got an estimate from the local Porsche dealer for replacement of all the parts that added up to nearly $4000. They wrote me a check less the $250. deductible no questions asked. Farm Bureau may ask you to have your personal cars insured with them as part of the deal but if so they are competitive for daily drivers too. GL

[Jack U.]

Re: Insurance quote - Farm Bureau - Am I dreaming?

Yes, I offered a recent appraisal and the quote shows that value. It is the only car (of the three) with those numbers next the quote.

I'd like to believe it is "the real deal" but I will ask the question about, "If the car is stolen, will I receive the full amount as stated on the policy."

The agent told me he would be taking pictures of the car assuming I accept the quote.

[Jack U.]

Thanks for the additional info & questions to

I'm switching all three cars and the house over to Farm Bureau if the quote is "the real deal".

I'm with a couple of companies currently and I know I can get a better deal with a single company underwriting everything.

[Dick W.]

Re: Thanks for the additional info & questions to

I have my 1972 insured with Farm Bureau for stated value. When I inquired about this coverage, the agent had to call the home office as this was his first request for such. I had to furnish pictures and a certified apppraisal of the value. So far I have not had to use the coverage.

I think the key sometimes to have a local agent who knows you and your history. I already had home and other autos with this agency.

[Jack U.]

Re: Thanks for the additional info & questions to

The agent I'm working with at Farm Bureau owns a Dort (made from 1915 to 1925).

I think he understands collector cars.

I've been told a couple of times so far that the quote was "stated value".

My question to him has to do with the amount he quoted me. I thought it should have been a bit higher. That's the reason I'm questioning, if it "walks like a duck" and "talks like a duck", is it "a duck".

[Patrick H.]

Re: Thanks for the additional info & questions to

Get it print from him what FB means by "stated value." If you read the dozens of threads in the Archives on the subject, you will see that most will recommend "agreed value" over stated value.

Patrick

[Jack H.]

The distinction lies in the fine print...

There are basically two forms of 'stated/declared' value policies out there:

(1) Those based on 'inland marine' structure.
(2) Those based on modified standard automobile structure.

On standard auto policies, read the fine print and you'll typically find two 'out clauses'. One states that any representations made by ANYONE (including the insurer's employees or agents) are non-binding and only the terms printed in the policy govern. The other deals with Actual Cash Value or ACV.

What's ACV? Well, it's what the car was ACTUALLY worth JUST PRIOR to the loss. Hey, that's pretty subjective since who's to say what options were actually on the car (vs. removed/sold) and what condition the car was really in at that exact instance in time... But, a standard automobile policy LIMITS the insurer's risk exposure to ACV.

Now, for these policies, you can buy a 'rider' that adds a 'declared' or 'stated' value to the policy. You'll pay an extra annual fee for the rider and you'll have to submit an appraisal, Etc. to document/prove the legitimacy of the stated/declared policy in order for the insurance underwriters to approve the rider.

Here's where the 'Catch-22' comes in... Most of these policies have NO limitations on annual mileage driven, vehicle storage conditions, or use for a particular purpose. AND, they NEVER come back to over time to make you prove the vehicle is still in the condition it was originally described/approved for the rider to be issued.

Guess what? If you read the actual fine print of the insurance policy, you'll see it says they'll pay EITHER the ACC or the stated/declared value WHICHEVER IS LOWER in the event of a total loss. So, it's up to you to keep a 'doomsday' file to PROVE the car was actually in the same condition as when the initial rider was originally approved/issued!!!!

Inland marine policies are structured on the basis of sea going vessels. Ocean freight has been around for centuries and insurers like Lloyds of London cut their teeth on writing these policies. When a ship at sea goes down, who's to say what was actually on-board and what the value was?

So, these policies are ONLY based on the value agreed on and policy premium is computed directly from that value ($/year premium vs. $1000 value increments). For actual ocean vessels, the ship's manifest is/was recorded at each port of call and the policy premium changed accordingly. For an 'inland' version of a marine policy, an apprasial is provided to justify the MAX value the owner has elected is indeed in-line with the vehicle and certain restrictions of use (can't park it unattended on the streets, can only log so many miles per year, HAVE to have/prove an adequate garage/storage facility, Etc.).

With these policies, there is NO REFERENCE to ACV and in the event of a total loss they pay the policy limit without discussion/argument. So, buyer beware and do NOT take your insurance agent's word for how this/that policy works. Get the fine print direct from the underwriter and READ IT!