State Farm and Agreed Value?

[Lumatic]

I took out an agreed value policy at State Farm about 5 years ago. I was careful to ask is is this an agreed value policy. I just had my trailer reappraised by Jim Polk. It appraised higher and I wanted to increase my coverage accordingly. State Farm told me they do appraised value on vintage cars but as far as trailers never have and never will. They said my policy is based on the 1971 sale price of $10,000 which does not make sense either.

Any body else had a problem like this at State Farm?

Needless to say, I am looking for a new insurance company.

[SteveH]

We've used State Farm for years without problems, but never had a situation like yours. Insurance companies can be very "inflexible" at times.

In your situation, I would be doing what you are doing, looking for a new insurance company.

[Stefrobrts]

Yes, we had the same issue with them. I thought I had an agreed upon value policy for a few years, then they said no, it was based on book value, which makes no sense on a vintage trailer. We switched to AAA, which is Progressive. They did an agreed value policy, we had it appraised, sent them the paperwork, and as far as we know it is now insured at the value we believe it would take to replace it. We just hope we never have to find out!

[DKB_SATX]

Originally Posted by Stefrobrts

Yes, we had the same issue with them. I thought I had an agreed upon value policy for a few years, then they said no, it was based on book value, which makes no sense on a vintage trailer. We switched to AAA, which is Progressive. They did an agreed value policy, we had it appraised, sent them the paperwork, and as far as we know it is now insured at the value we believe it would take to replace it. We just hope we never have to find out!

I also have AAA and just wanted to point out that which entity insures you depends on where you live with AAA. In Texas the automotive policies are through AAA Texas County Mutual Insurance.

[68Streamline]

I also have AAA and I'm in CA. Here the coverage (including deductible) for the trailer is the same as the TV that is pulling it. Does anyone else have this type of coverage?

[DKB_SATX]

Originally Posted by 68Streamline

I also have AAA and I'm in CA. Here the coverage (including deductible) for the trailer is the same as the TV that is pulling it. Does anyone else have this type of coverage?

You might want to clarify that with AAA. In Texas, liability coverage for the trailer comes from the tow vehicle policy, but it doesn't cover any loss or damage to the trailer itself. I have a separate policy covering damage to or theft of the trailer. I don't know if that's applicable in CA at all, but it doesn't make sense that the value of the trailer is assumed to be covered by the tow vehicle's insurance, since the trailer might be worth multiples of the tow vehicle's value.

[wahoonc]

I have not had good luck with State Farm from either a homeowner/auto owner or as a contractor having to deal with them in the past. YMMV. We have agreed value policies on several items that we own currently most of those are through either Nationwide or Progressive. I don't have any coverage on my AS yet because it is still in pieces.

Aaron

[Protagonist]

I have an agreed value policy with GMAC, but mine's an Interstate motorhome, not a trailer, so I can't say whether they do agreed value on trailers. Still, it's another company for you to check with.

I do know that GMAC and Progressive both offer discounts to Good Sam Club members, and I think Geico does as well. If the insurance savings is more than the annual dues, it would be worth joining Good Sam to get the insurance discount even if you never take advantage of any of their other benefits.

By the way, GMAC also offers a GM brand loyalty discount; if you own even one GM vehicle, the discount applies to every vehicle you insure with them. Not being a GM owner, I couldn't take advantage of that discount, but my agent did mention it.

Do try to stay away from Allstate, though; again I wasn't insuring a trailer, but their coverage on motorhomes was woefully inadequate when I looked into it, and I can't imagine it's any better for trailers.

[idroba]

Over the years I have had two Airstreams totaled out by State Farm. A tree fell on a '70, 23' one in Dawson Yukon in the early 80's. We towed it back to the states, took it to an Airstream dealer, and they gave me a price that they would have sold it for, undamaged, on their lot. State farm not only gave me a check for that amount, but they waved the $500 deductible stating that "if you had abandoned it in Canada, and we had to deal with it there, it would have cost us far more than the deductible" They offered to sell it back to me for $1000, but it was too badly damaged for me to want it. It became a sheep herders cabin somewhere in Oregon I later was told.

The second one, a '76, 25' got two scrapes on the road side due to me coming around a flat bed trailer in a rest area 1/4 inch too close. One was above the center seam, one below. A 1" tear in the metal on one of the scrapes. I took it to an Airstream dealer and they gave State Farm and estimate of what they would have sold it for on their lot, and a second estimate for the repair cost of replacing all the panels on the road side. Since it was a higher repair cost than selling cost, State Farm paid me the selling cost. They also offered it back to me for $1500 and I took it, later selling it with scratches for $3500 (this was in the early 90's).

So, State Farm has been fair to me, at least on those two experiences a number of years ago. It may help that I have been with the same great agent for 40 years and he is always willing to go to bat for me if needed. That need has been unusual though.

[Bluto]

I'm really glad I read this thread. I called Progressive and found out my insurance was not as I thought. I thought I had an agreed value policy and found out it was worded as a cash policy meaning what ever value the agent places on it at time of totaling is what I would get in settlement.
I quickly, added the agreed value to it for a little more money.
Whew, that was close!
I could have gone for years with the wrong idea of what kind of coverage I had bought.
I'd be one surprised and angry person when I found out the hard way.

[Protagonist]

Originally Posted by Bluto

I quickly, added the agreed value to it for a little more money.
Whew, that was close!

Did you happen to ask about discounts while you were at it?

[cwf]

SF tried similar for a "vintage" car. I told them "comprehensive coverage says u fix it, so fix or replace, please. " I found parts and they fixed it.

[Bluto]

Originally Posted by Protagonist

Did you happen to ask about discounts while you were at it?

Yes, and they said that Good Sam discount is not available where I live. I guess they mean Texas.

But if I was refered to them by USAA I could get about a $50 discount.

I was going to switch my other policies to USAA a couple of years ago but never had. I think that now I'll check into it and see what they charge compared to other INS companies. I actually started a thread about it back then but never followed up.
In order to get the Progressive thru USAA I understand I need to first cancel my current Progressive policy and then get the new Progressive policy thru USAA or at least their referral.
Lots of hoops to jump thru.

[Protagonist]

Originally Posted by Bluto

Yes, and they said that Good Sam discount is not available where I live. I guess they mean Texas.

Although that's the discount I mentioned earlier, there are other possibilities. Like perhaps an AARP discount (if you're old enough to belong), or a multiple-vehicle discount, or a home+vehicle discount.

Or insurance discounts for installed anti-theft measures such as alarms or VIN etching on the glass or lo-jack.

When shopping for insurance, it doesn't cost anything extra to ask what various discounts they offer, to see if you qualify for any of them.

[AWCHIEF]

Neither State Farm nor Allstate would touch my 1964 Bambi II. USAA and Progressive would cover me, but not with an agreed value policy. I have Foremost agreed value coverage on my trailer with the max amount in writing so there hopefully will not be an issue if I ever have to file a claim. In addition the premium to Foremost is less than all the other quotes I received.

[Dfrenchy]

People should always read the definition of agreed amount or stated amount or the "what we will pay" section of their policies. In most cases they are telling you that those amounts are the MOST they will pay. They will never pay more than the actual cash value, no matter what stated amount. It's usually up to you to prove the ACV:^)

Stated amount is used to protect them, not you.

[Bluto]

Protagonist,
Thanks, Those are some good ideas.

[AWCHIEF]

Originally Posted by Dfrenchy

People should always read the definition of agreed amount or stated amount or the "what we will pay" section of their policies. In most cases they are telling you that those amounts are the MOST they will pay. They will never pay more than the actual cash value, no matter what stated amount. It's usually up to you to prove the ACV:^)

Stated amount is used to protect them, not you.

That is why you need to get the agreed value in writing.

[mccrosti]

The Big Three Insurance companies do not write Agreed Value policies. If you *think* you have an agreed value policy call your agent and ask them to show you the verbage. It is very simple. The policy will say "In the event of a total loss the company will pay $XXX" be prepared to provide an appraisal. Stated Value coverage is *not* the same thing.