60Bubba Posted January 9, 2015 Share Posted January 9, 2015 As my restoration project progressed from a simple respray to a frame off restoration, I've started to worry about insurance. My wife used to do bodily injury claims for an auto insurer, so she is pretty familiar with the topic, but property damage was not her niche. We both assumed I could pay an insurer a higher premium to insure my vehicle for "more than it's worth." For example, NADA says the original cost of my 1983 CJ-7 with hardtop was $6995. For a vehicle this old, they don't even allow for any other options than the hardtop. The current average retail is $6575, and the high retail is $10,175. I have little doubt that my Jeep will be worth more than those figures once complete, but USAA won't ensure it for more than the book value. Their determination as to appropriate value given an accident also seems to be pretty subjective. I asked if I could get an appraisal (or several) to establish value, but they said that would have no impact on their valuation. They suggested collector's insurance, but as Jay discovered, those insurers won't cover a vehicle driven more than a few thousand miles per year, or any off road driving. That sort of defeats the purpose of having a classic Jeep. Does anyone have any experience with insuring a vehicle for more than book value? I believe the term is "agreed cost". In other words, the insurer and the owner agree on how much the car is worth, and an appropriate premium is charged. Both my wife and I thought this should be straight forward, but apparently not so much. I'd like to insure the Jeep for around $13K to $15K, as it seems like that is about what it would cost to buy a similar Jeep, or rebuild mine if it gets T-boned. Another reason to increase the insured value is to avoid an insurance write-off if the Jeep is "totaled" by the insurance company. If the book value is only $6-7K, there could easily be enough damage in a relatively minor accident for the insurance company to call it a total loss. I could always buy it back and fix it, but then it would have a salvage title. Any ideas would be appreciated. Quote Link to comment Share on other sites More sharing options...
Administrators Moses Ludel Posted January 9, 2015 Administrators Share Posted January 9, 2015 Salient topic, Case...I would have gone with your reasoning...Contact other carriers and see if they're all restricted by California insurance law. Since you're moving to Tennessee, call an agent in that state and ask if your "agreed value" approach is recognized in the State of Tennessee insurance community. Others may have additional comments. The collector's insurance does seem controversial for a vehicle quite capable of negotiating the Rubicon Trail... Can other members comment here? Moses Quote Link to comment Share on other sites More sharing options...
spdljohn Posted January 10, 2015 Share Posted January 10, 2015 That is a great question. I have wondered about that but I haven't gotten to that point yet. I am going to contact my insurance agent and see what he recommends. Ill let you know what he says. David Quote Link to comment Share on other sites More sharing options...
60Bubba Posted January 14, 2015 Author Share Posted January 14, 2015 Still nothing useful on the insurance front. I spoke to Hagerty's today on the advice of some folks on the Midsouth Jeeps forum, which is based in Memphis where we're headed next. They won't help because my Jeep will be a daily driver, at least for a few months. In fact, if the number of drivers in your household exceeds the number of non-collector cars you own, Hagerty won't insure your collector's car. They assume you will drive it too much. How dare we drive our vehicles and ask that someone take our money to insure them... Quote Link to comment Share on other sites More sharing options...
Administrators Moses Ludel Posted January 14, 2015 Administrators Share Posted January 14, 2015 Did you call an insurance agent at Tennessee yet? If not, I would do that. You may find that the State of Tennessee allows underwriting of vehicles at a declared value. If that does pan out, can you register the Jeep at Tennessee now? Do you have an address for residency there? Moses Quote Link to comment Share on other sites More sharing options...
60Bubba Posted January 14, 2015 Author Share Posted January 14, 2015 I do have an address, but I have not specifically called a TN insurer. I did tell Hagerty it would be in TN, so they won't be any help regardless. I have a few more calls to make this morning. I'll post if I find a solution. Might help David when his build is ready to roll. Quote Link to comment Share on other sites More sharing options...
AZ.Jay Posted January 14, 2015 Share Posted January 14, 2015 Hagerty was the first one I talked to. The other two I called were Condon Skelly and Grundy. All gave me the same no off road answer. Quote Link to comment Share on other sites More sharing options...
60Bubba Posted January 15, 2015 Author Share Posted January 15, 2015 I hooked up with AAA here in Cali. They will insure the vehicle for "replacement value". Based on the agents' quick search on DuPont Registry, it looks like other similar builds were running between $18-27K. I don't think mine is worth that much, but it looks like AAA would be willing to pay out what I think it's worth. Unlike USAA and most of the others I spoke with, they will take into account all my receipts for parts, body work, painting, etc. Also, they will accept an appraisal as part of the valuation. This is essentially a "normal" policy, so there are no restrictions on driving the Jeep. Sounds like just what I was after for the short term. One interesting thing I learned is that AAA is a national company for roadside assistance, etc., but each state has its own AAA insurance corporation. I'm starting the policy here in Cali, but after the first year I would have to start over with a TN AAA branch. Apparently, they only allow me to keep the policy once I leave CA because I'm military. For the average Joe, they'd have to cancel one policy and start another as soon as a change of residence occurred. I plan to get another daily driver sometime later this year, so I may end up switching to a collector policy of some kind after the first year is up. Quote Link to comment Share on other sites More sharing options...
Administrators Moses Ludel Posted January 15, 2015 Administrators Share Posted January 15, 2015 The AAA sounds best if it's a competitive rate. The collector policy is restrictive and involves accountability for where, how and how much you drive the vehicle. Congrats, you're over this hurdle! Moses Quote Link to comment Share on other sites More sharing options...
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