Insurance

Blu bi Kong

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I know there are multiple posts about what we need to do to include all of our mods on our insurance policies.
As a cost baseline in our new policy starting tomorrow with the items below covered for stated value it increased my policy by $15.10 a month.
2000.00 tires and wheels
700.00 winch
600.00 rear bumper
600.00 front bumper
600.00 misc lighting
1200.00 rock sliders
1000.00 interior cargo floor
4000.00 lift kit

So, kind of a no brainier to make sure we do that we can!





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WXman

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Do they pay you the exact amount you specify in the event of a total loss?

Here's what I've always wondered (I'm going to use arbitrary numbers. These are not accurate.) Let's say you pay $40,000 for your Jeep brand new, and you then add $10,000 in mods to it. You take out an additional policy add-on to cover the mods you bought.

18 months down the road, some moron runs you off the road without making contact and keeps driving. However, you run into some trees and total your Jeep.

The insurance company offers to pay what they think is fair for the Jeep. Let's say $32,000. Then they pay you the extra for the mods. So now you've got $42,000. However, you still owe $34,000 on the Jeep.

Can you replace the Jeep with another new one AND the same mods? Or will you end up being out of pocket quite a bit despite the fact that you paid more for insurance each month to try and prevent that?
 
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Blu bi Kong

Blu bi Kong

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Do they pay you the exact amount you specify in the event of a total loss?

Here's what I've always wondered (I'm going to use arbitrary numbers. These are not accurate.) Let's say you pay $40,000 for your Jeep brand new, and you then add $10,000 in mods to it. You take out an additional policy add-on to cover the mods you bought.

18 months down the road, some moron runs you off the road without making contact and keeps driving. However, you run into some trees and total your Jeep.

The insurance company offers to pay what they think is fair for the Jeep. Let's say $32,000. Then they pay you the extra for the mods. So now you've got $42,000. However, you still owe $34,000 on the Jeep.

Can you replace the Jeep with another new one AND the same mods? Or will you end up being out of pocket quite a bit despite the fact that you paid more for insurance each month to try and prevent that?
@WXman, I can only speculate as my wife is the insurance queen of our home. As I understand it, they will replace the Jeep if need be with minimum of the next model year plus the stated value for each of the items on the list we gave them today. I asked her to handle this. In my case, after my motorcycle accident insurance (that she had in place) paid a total of $23,670.00 on my totaled bike.( I paid $17,200.00 cash for motorcycle) $4500.00 of which was based on our stated value of each item specifically listed. so I made money thru accident.
Fast forward, with that being paid I put $25,000 cash down on Jeep. She has it insured to the hilt. obviously with that down payment there is no need for GAP insurance, but as I understand it, we were asked for a specific list of each item and it's stated value by us.
This list was then given to Geico and our quote was $90.60 for the 6 month term.
After my motorcycle accident and the way they paid in that instance, she set it up the same way.
I just can't go wrong with the way they handled my motorcycle claim.
vic
 

nerubi

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@WXman, I can only speculate as my wife is the insurance queen of our home. As I understand it, they will replace the Jeep if need be with minimum of the next model year plus the stated value for each of the items on the list we gave them today. I asked her to handle this. In my case, after my motorcycle accident insurance (that she had in place) paid a total of $23,670.00 on my totaled bike.( I paid $17,200.00 cash for motorcycle) $4500.00 of which was based on our stated value of each item specifically listed. so I made money thru accident.
Fast forward, with that being paid I put $25,000 cash down on Jeep. She has it insured to the hilt. obviously with that down payment there is no need for GAP insurance, but as I understand it, we were asked for a specific list of each item and it's stated value by us.
This list was then given to Geico and our quote was $90.60 for the 6 month term.
After my motorcycle accident and the way they paid in that instance, she set it up the same way.
I just can't go wrong with the way they handled my motorcycle claim.
vic
Many companies don't offer New Replacement and Gap riders. Those that do have limitations, the state you are in must allow those riders, there are limits on how old the car is (most limit it to one to two year old cars and limited mileage), limits on how it was totaled such as stolen, fire, flood. Exact costs aren't known for all the companies but some estimate the extra coverage averages 7% of your collision and comprehensive premium.
Gap riders cover the difference of the of the insurance payout and your loan balance. Each company has different rules for that coverage.
For some people it may work out but you pay the price if you never total your car which doesn't happen to most people, and according to "experts" will happen less with all the expensive safety equipment on newer cars, which is raising your collision premiums (according to my agent) because they are expensive to repair.
 

intentsrig

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I know there are multiple posts about what we need to do to include all of our mods on our insurance policies.
As a cost baseline in our new policy starting tomorrow with the items below covered for stated value it increased my policy by $15.10 a month.
2000.00 tires and wheels
700.00 winch
600.00 rear bumper
600.00 front bumper
600.00 misc lighting
1200.00 rock sliders
1000.00 interior cargo floor
4000.00 lift kit

So, kind of a no brainier to make sure we do that we can!
Who do you have for insurance?
 
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Blu bi Kong

Blu bi Kong

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God knows I have paid dearly for insurance through the years living in California. I'm just glad I was over compensated after my accident. Quite a price to have paid tho! And seem to be well covered and prepared for anything with my brand new well accessorized Jeep!
 

Dogboyslim

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Some insurance basics.

On most policies, unless endorsed, settlement is actual cash value (ACV) of the vehicle immediately prior to the accident/loss. So in this case, you buy a $40k Jeep. Roll off the lot and get it totaled, your settlement will be somewhere in the $35k range, as that's the value of a used jeep with very few miles on it. (I'm making up numbers for illustration here).

If you add additional coverage, you need to pay attention to the terms. Some carriers use Stated Value, others use Agreed Value. Agreed Value is better at the time of loss. An Agreed Value is an agreement between you and the carrier that your options are worth $X. At time of loss, you get $X for totaled equipment. Stated Value sounds the same but is different. Stated Value is in essence the company saying "I don't know how much you should pay for premium because I don't know what its worth. You tell me and I'll base your premiums on that amount." At time of loss however, the carrier will research the value and pay you the LOWEST amount between the ACV and the Stated Amount. Pay attention to which your company is using.

As for the replacement/GAP provisions, those vary by carrier so you really need to talk to your carrier, but they typically increase the payment above ACV to cover the gap between the lease/loan amount and the ACV, or they will pay to replace the vehicle with a similarly equipped same or one year newer vehicle. Again, look at the terms and understand what you are purchasing.

Best of luck all!
 
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Blu bi Kong

Blu bi Kong

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Some insurance basics.

On most policies, unless endorsed, settlement is actual cash value (ACV) of the vehicle immediately prior to the accident/loss. So in this case, you buy a $40k Jeep. Roll off the lot and get it totaled, your settlement will be somewhere in the $35k range, as that's the value of a used jeep with very few miles on it. (I'm making up numbers for illustration here).

If you add additional coverage, you need to pay attention to the terms. Some carriers use Stated Value, others use Agreed Value. Agreed Value is better at the time of loss. An Agreed Value is an agreement between you and the carrier that your options are worth $X. At time of loss, you get $X for totaled equipment. Stated Value sounds the same but is different. Stated Value is in essence the company saying "I don't know how much you should pay for premium because I don't know what its worth. You tell me and I'll base your premiums on that amount." At time of loss however, the carrier will research the value and pay you the LOWEST amount between the ACV and the Stated Amount. Pay attention to which your company is using.

As for the replacement/GAP provisions, those vary by carrier so you really need to talk to your carrier, but they typically increase the payment above ACV to cover the gap between the lease/loan amount and the ACV, or they will pay to replace the vehicle with a similarly equipped same or one year newer vehicle. Again, look at the terms and understand what you are purchasing.

Best of luck all!
I mispoke. Checking with first my wife, then Geico the accessories I listed are their insured for their actual cash value. That is why my wife had me make the itemized list including the values I wanted to insure them for. There inlies why any all of our insurance needs, quotes, terminoligy etc...is entirely up to my wife!
 
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Blu bi Kong

Blu bi Kong

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Some insurance basics.

On most policies, unless endorsed, settlement is actual cash value (ACV) of the vehicle immediately prior to the accident/loss. So in this case, you buy a $40k Jeep. Roll off the lot and get it totaled, your settlement will be somewhere in the $35k range, as that's the value of a used jeep with very few miles on it. (I'm making up numbers for illustration here).

If you add additional coverage, you need to pay attention to the terms. Some carriers use Stated Value, others use Agreed Value. Agreed Value is better at the time of loss. An Agreed Value is an agreement between you and the carrier that your options are worth $X. At time of loss, you get $X for totaled equipment. Stated Value sounds the same but is different. Stated Value is in essence the company saying "I don't know how much you should pay for premium because I don't know what its worth. You tell me and I'll base your premiums on that amount." At time of loss however, the carrier will research the value and pay you the LOWEST amount between the ACV and the Stated Amount. Pay attention to which your company is using.

As for the replacement/GAP provisions, those vary by carrier so you really need to talk to your carrier, but they typically increase the payment above ACV to cover the gap between the lease/loan amount and the ACV, or they will pay to replace the vehicle with a similarly equipped same or one year newer vehicle. Again, look at the terms and understand what you are purchasing.

Best of luck all!
I was wrong. Again! Each of the items I listed are insured for that specific amount period. No discussion whenever any claim comes in. That is why the amounts I gave were so critical.
My girl is in my corner!
 

Muller21pr

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I know there are multiple posts about what we need to do to include all of our mods on our insurance policies.
As a cost baseline in our new policy starting tomorrow with the items below covered for stated value it increased my policy by $15.10 a month.
2000.00 tires and wheels
700.00 winch
600.00 rear bumper
600.00 front bumper
600.00 misc lighting
1200.00 rock sliders
1000.00 interior cargo floor
4000.00 lift kit

So, kind of a no brainier to make sure we do that we can!
Dudes, is it normal that I didn't mention these costs when I concluded a contract with http://www.total-insurance.co.uk to get a courier insurance? Guys from that company said that it's unnecessary, because in case of any accident they will repair my car in their own auto repair shop and I won't have to pay anything. Is it okey? Frankly speaking I agreed to use their services due to cheap prices, but now I can't understand, maybe there is a catch?
 

Crawdad1028

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I have progressive with 5k of extra coverage. (Need to up that now) but they stated that in the event of a total loss they will pay the "value" of the vehicle, then gap insurance kicks in (through the credit union it is financed with) and then they will cut me a check for $5k. I need to up the coverage substantially now which will require a different type of policy according to them but up to the 5k mark it is no questions asked basically on the additional coverage.
 

four low

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Dudes, is it normal that I didn't mention these costs when I concluded a contract with http://www.total-insurance.co.uk to get a courier insurance? Guys from that company said that it's unnecessary, because in case of any accident they will repair my car in their own auto repair shop and I won't have to pay anything. Is it okey? Frankly speaking I agreed to use their services due to cheap prices, but now I can't understand, maybe there is a catch?
If they repair it in their shop, cheap prices, there might be a "catch". Used, reconditioned, non-poem parts might be stipulated, read and understand the "fine print"....
 

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