Problem getting full insurance coverage for used SMB

jstanley · 07-24-2009, 10:19 PM

Hi,
Im buying a used 2003 4wd RB 50 E-350 SMB.
My insurance carrier (Farmers) will only insure for replacement a 2003 2wd stripped van + 10 k in upgrades.
This is only ~ 1/2 of the purchase price.
How do I get full replacement coverage?
Thanks,
John

billwilson · 07-25-2009, 01:55 AM

Quote:

Originally Posted by jstanley

Hi,
Im buying a used 2003 4wd RB 50 E-350 SMB.
My insurance carrier (Farmers) will only insure for replacement a 2003 2wd stripped van + 10 k in upgrades.
This is only ~ 1/2 of the purchase price.
How do I get full replacement coverage?
Thanks,
John

i am interested in info also

i was told by my carrier for my '84 Westy that needed and "appraisal"

THEN i could add a rider

any input??

SheepShagger · 07-25-2009, 03:00 PM

Try an agreed value policy. Farmers are a real pain with anything but a standard vehicle, so they may not do an agreed value policy.
If it's a Quigley 4x4 then that will be covered under the standard vehicle policy since it's a Ford factory option. But still won't get you to the value of a complete conversion. But it will increase your coverage to 2003 2wd stripped van + ~10k quigley 4x4 + 10 k in upgrades.

jage · 07-25-2009, 04:19 PM

Progressive has an agreed value policy for RVs. Certainly there are others (I need to start looking because I don't trust Progressive).

There are a lot of insurance posts around, but I'm not sure how well they focus on older SMBs. I bailed on my Farmer's policies two years ago because the Tucson agent was a

but I had it worked out to nearly full coverage, and the way it added up had to be more than 10K over the base vehicle.

Psomaki · 07-25-2009, 05:10 PM

John, my SMB is 10 years older than yours, so its value is much lower. Still, it's worth (and insured for) a lot more than a basic 1993 E-350. I have auto and home insurance with USAA and they seconded me to Progressive, with whom they have a negotiated relationship. USAA does not insure mobile homes or RVs. I found Progressive easy to work with and there were no price or value quibbles.

Jage, this brings me to a question - why don't you trust Progressive? USAA tends only to back good suppliers, but maybe they missed something!

SheepShagger · 07-25-2009, 08:35 PM

Quote:

Originally Posted by jage

Progressive has an agreed value policy for RVs. Certainly there are others (I need to start looking because I don't trust Progressive).

There are a lot of insurance posts around, but I'm not sure how well they focus on older SMBs. I bailed on my Farmer's policies two years ago because the Tucson agent was a

but I had it worked out to nearly full coverage, and the way it added up had to be more than 10K over the base vehicle.

I had been with Farmers for 10+ years with at least 5 vehicles at any given time, but bailed on them 4 years ago when they refused to insure an AC Cobra replica I have. Been with progressive ever since, they are a pain but no more so than most other insurance company's, at least you know what to expect, and my premiums are 40% less with progressive than Farmers. Have to admit, farmers are better than most, but all insurance companies are dirtbags.

jlrray · 07-26-2009, 12:07 AM

I used an appraised value from a certified appraisal. I used the same appraisal to get my loan to purchase the van. I also have farmers and my agent has always been willing to work with me.

Joe

jage · 07-26-2009, 04:44 PM

I've written about this elsewhere but in short the custom topper on my pickup was totalled out by hail because they have a $1000 accessory limit on standard policies. Of course it's worth (was) a lot more, so they just cut me a check because I'd maxed out on accessories (halved by the deductible, d'oh!)

I went home and added up my Jeep accessories and I was a bit more than $10,000 under-insured based on the replacement cost of parts which were capped at $1000 without paying a premium, which I now pay. Trying to get that resolved led to about seven conversations with six different agents and their supervisors, many of which revolved around whether I would have to produce receipts for coverage.

Multiple agents have tried to tell me that I did need to produce receipts for coverage- which is true for a lower bracket than I carry, but not for my type under Progressive. Still, it is a huge deal to me because I spent 10 years building this Jeep, waiting for sales, trading for parts, and parting out other Jeeps for upgrades. I've done 90% of the work myself and most of the deals are non-reproducible, the rest I haven't kept receipts anyway. I don't like having to make them quote my policy and then needing to explain it to them, but that's how it works.

However, after all these conversations and research I'm convinced that they are set up for vanilla coverage and how they make their money is everything is cut and dried on a VIN. Not good news for purveyors of highly customized rigs.

I miss the days of my Indiana Farmers agent who would not only answer all my insipid questions, but was in my corner to ensure the best possible coverage and (at least I felt like) would be in my corner in case of a problem.