Insurance Question (1 Viewer)

[Banzai Run]

So as we all watch the prices of 100 series bloat to the moon - it raised a question for me. If you have your 100 stolen or total it, are you going to be left holding the bag after the insurance payout?

They are basically selling for double kelly blue book right now, unmodified. I thought insurance usually goes off blue book (maybe they adjust for certain recent local market transactions I really don't know)

Just curious if recent buyers are sitting on +/-$10K in potential losses here.

 

[JunkCrzr89]

There are some recent threads on this, and I’m sure many others from years past:

RIP Gudmundur 2.0 - TOTALED

I found this post below from @MongooseGA from ~15 months ago WRT insurance company 💩. The "SWIM" para below makes me smile... :rofl: This is, I would say, the norm. Ex: I was lucky in that a corporate vehicle hit my freshly build '00 LC last Summer (dump truck). I had literally just installed...

forum.ih8mud.com

100s are tough, but elk hurt

Did the insurance company change their mind? No, but they’ve also not yet notified me how much money they’ll be sending for repairs. When the inspector was here, he said I may need to try to find a couple of quality used body parts because he was going to keep the estimated repair costs below...

forum.ih8mud.com

Short answer is I think it depends on the type of coverage, the insurance company, the individual adjuster, the local market, whether or not you have receipts for all previous parts installed (labor costs are irrelevant), etc. Most insurers are going to start at or below KBB value and it generally seems entirely up to the owner to provide receipts and recent examples from the local market to try to get the valuation higher.

 

[Banzai Run]

Cool thanks for providing those threads - I didn’t think to look before as I thought the price spike was a very recent phenomenon.
Basically sounds like at best it will be a fight/headache to get properly paid out or worst case you lose some.

I guess this really begs the question - why is KBB so low still? Shouldn’t it adjust to the reality of recent price trends?

 

[JunkCrzr89]

why is KBB so low still? Shouldn’t it adjust to the reality of recent price trends?

Because Land Cruiser...and also KBB factors in multiple sources when deciding on a value; for example, wholesale auctions where 100s are selling for dirt cheap. There’s also a lengthy lag in adjustments. Are Kelley Blue Book Values Accurate and Reliable?

 

[Banzai Run]

Makes sense - you know your stuff - thanks for sharing.

 

[fro20fow]

Had this call with my insurance company:

Asked what what they would pay if my vehicle was totaled: They can’t answer.
Asked if they would cover OEM windshield if windshield breaks: They can’t answer.

Im surprised there are not more consumer advocate groups on this. Similar to health insurance I want to know what is covered in the event I need to use it. Seems very unfair to the consumer.

The rep did tell me they value the vehicle based on “ road value” and not something like “collector value”. Pretty sure our land cruisers have a pretty low road value but high enthusiast or collector value so might want to contact insurance broker that can shop around and write stated value policy or umbrella type policy to cover over and beyond your primary insurance coverage.

 

[DuckLN]

I rolled the cleanest 1999 2 door smoked gray metallic tahoe in Arkansas on 8/11/2008. I had been offered $10k for it many times and fought jake from state charm tooth and nail over the ”total loss” claim. They initially offered $7k and then after I voiced argument, did a “market survey”. Well i told the guy there are no other smoked gray metallic tahoes that are this clean to compare it to and sure enough they came back at $6,500. I continued the good fight and eventually settled for something around $8k but it wasn't easy as the vehicle had 176k odo.

I think there are enough documented sales of 100 series to identify fair value but at the time of my accident, that was no fault of mine, there weren't many 2 door tahoes left.

 

[AlpineAccess]

There are insurance companies that you can insure agreed value vs market value.

I do this with my older ski boat, and know several guys with classic cruisers who do this as well. You pay more, but oh well.

 

[suprarx7nut]

One of the keys here is to know that insurance payouts are (to my knowledge) always negotiable - even when the adjuster insists it is not.

Recent experience of mine as anecdote: Windshield replacement on my 06LX with 218k miles. I wanted a new windshield, OEM only, new trim and previous damage repaired. I argued (as politely as possible) with two different agents. Both told me very clearly, "NO" more times than I can count. It took many calls and hours on the phone, but they agreed to cover 100% of the OEM glass, OEM trim and 50% of the prep work to repair old damage. What started as a $250 glass claim paid out around $3k. All from my persistence and thoughtful annoyance on the phone.

Total losses are similar. You don't have to accept ANY payout. The adjusters have metrics based on how quickly they can resolve claims. Long claims aren't good for them. If you don't like their offer, reject it, show them evidence and hold out. Weeks, months, a year. Whatever it takes. (Of course that only works if you can afford to let them keep that money for that period of time)

There are insurance companies that you can insure agreed value vs market value.

I do this with my older ski boat, and know several guys with classic cruisers who do this as well. You pay more, but oh well.

Yup. I've got agreed value on my Supra. I got it maybe 6 years ago when values were bottomed out. I had it insured for ~$12k when common book value was $2k. Hagerty now shows it at $7-13k.

TLDR: Book values are inaccurate and insurance is highly negotiable. If you're really concerned, seek an agreed value policy.

 

[Banzai Run]

Ok - good to know on the agreed value thing, I was not aware of that. I have not had an auto insurance claim in around 20 years so had no idea what to expect.

So why was OEM windshield glass so important on the LX? I am surprised they agreed to that on a vehicle with 200k+ miles - good for you on your persistence.

 

[3_puppies]

when the wife smacked a deer with the LX a few years ago we found out in our policy that OEM parts only for wreck repairs. no aftermarket stuff on ours.

 

[suprarx7nut]

Ok - good to know on the agreed value thing, I was not aware of that. I have not had an auto insurance claim in around 20 years so had no idea what to expect.

So why was OEM windshield glass so important on the LX? I am surprised they agreed to that on a vehicle with 200k+ miles - good for you on your persistence.

I wanted OEM only because any minor improvement in product quality was worth it for me (even if I was paying $500 out of pocket). I think there are significant quality control differences between the common aftermarket $100-200 piece of glass and the OEM glass which is, nearly without exception to any manufacturer, $500-1000. Glass thickness, toughness, flatness, optical quality, etc... can all vary. It's also a critical component of the safety of the vehicle so a 5% variation in thickness or in the bond quality of the urethane due to a sub-par ceramic bond area was worth it.

when the wife smacked a deer with the LX a few years ago we found out in our policy that OEM parts only for wreck repairs. no aftermarket stuff on ours.

My AllState poilcy has boilerplate verbiage that the repair for ANY body part SHALL be OEM if preferred by the customer. I was thrilled to see that and Allstate did not push back on it.

9/10 would recommend Allstate to anyone else.

 

[AlpineAccess]

One of the keys here is to know that insurance payouts are (to my knowledge) always negotiable - even when the adjuster insists it is not.

Recent experience of mine as anecdote: Windshield replacement on my 06LX with 218k miles. I wanted a new windshield, OEM only, new trim and previous damage repaired. I argued (as politely as possible) with two different agents. Both told me very clearly, "NO" more times than I can count. It took many calls and hours on the phone, but they agreed to cover 100% of the OEM glass, OEM trim and 50% of the prep work to repair old damage. What started as a $250 glass claim paid out around $3k. All from my persistence and thoughtful annoyance on the phone.

Total losses are similar. You don't have to accept ANY payout. The adjusters have metrics based on how quickly they can resolve claims. Long claims aren't good for them. If you don't like their offer, reject it, show them evidence and hold out. Weeks, months, a year. Whatever it takes. (Of course that only works if you can afford to let them keep that money for that period of time)



Yup. I've got agreed value on my Supra. I got it maybe 6 years ago when values were bottomed out. I had it insured for ~$12k when common book value was $2k. Hagerty now shows it at $7-13k.

TLDR: Book values are inaccurate and insurance is highly negotiable. If you're really concerned, seek an agreed value policy.

A supra at 2k! Ahhhhh why was I not paying attention.

 

[suprarx7nut]

A supra at 2k! Ahhhhh why was I not paying attention.

To be clear, it's a 91 (so not the "Fast and Furious" variety), but it is turbo and it is manual. Popped up on a forum 1,000 miles away and I trailered it back as "inoperable" per CA regs.

Passed CO smog first try, naturally.

 

[AlpineAccess]

To be clear, it's a 91 (so not the "Fast and Furious" variety), but it is turbo and it is manual. Popped up on a forum 1,000 miles away and I trailered it back as "inoperable" per CA regs.

Passed CO smog first try, naturally.

Yep, that's the gen I like. Nice!