Insurance

Topic: Insurance (Read 1672 times) previous topic - next topic

Insurance

April 05, 2011, 10:58:30 pm

I know this was recently covered but I just got my renewal from Progressive...double last year's premium. I'm thinking of changing the agreed value to replacement value since I did a NADA search and found the two very close. I had an agreed value of $29,500 as that is what I paid two years ago. Is this a bad idea? Should I have an RV dealer give me an appraisal? Would an appraisal even be of help in the event something happens? I have a bad feeling about the "replacement" value as the rig may be old but she sure doesn't look it. I was paying $350 and it went to $750. I have clean record and excellent credit and I only use it a few weeks every year. I could see it if I was full-timing. I raised the deductible to $1000 and it only changed the premium by about $50. Has anyone shopped around recently? Any input appreciated.

Re: Insurance

Reply #1 – April 05, 2011, 11:22:15 pm

I do ExplorerRV insurance. We are not fulltimers and I recently changed my 'assessed value' from $94K to $70K. My premium dropped from 680 to 580. I have a 1K deductible. Good driving record and credit too.

Re: Insurance

Reply #2 – April 06, 2011, 09:08:42 am

Dwayne, Have your agent look up the ACV on your coach and use that as the insured value. In the event of a total loss all you are going to get is the ACV.

Re: Insurance

Reply #3 – April 06, 2011, 09:54:03 am

Quote from: Gary Bouland – April 06, 2011, 09:08:42 am

Dwayne, Have your agent look up the ACV on your coach and use that as the insured value. In the event of a total loss all you are going to get is the ACV.

Gary's correct - if you switch to a replacement value policy with Progressive, that's all you'll get.

If you want to ensure a minimum, you would need to stick with the Agreed-Value policy. You'd have to ask your agent or Progressive if they'd need an appraisal to do this and what their appraisal requirements are.

RV Insurance Coverages - Comprehensive and Collision

Quote

Market Value

Market Value is the most economical choice to insure your RV. If your RV is declared a total loss, this coverage pays either the lower of the actual cash value (ACV) at the time of loss or the market value displayed on the Declarations page. Market value should be reviewed periodically to ensure it accurately reflects the current value of the RV.

Agreed Value

Agreed Value protects your investment in your RV without considering depreciation for total losses. The total loss payout is the agreed value as shown on the Declarations page.

Proof of value is required for this option. For RVs purchased less than two years ago, the purchase documents are proof of value. For RVs purchased more than two years ago, an appraisal serves as proof of value.

Michelle

Re: Insurance

Reply #4 – April 06, 2011, 09:21:57 pm

Having worked for a national property/casualty insurer in their claims department for many years I would suggest one other question. If my vehicle were declared a total loss how does your claims department determine the ACV of my vehicle. I personally don't know of any that use NADA for any vehicle although I am not familiar with all insurers so who knows. Many insurers use a third party that maintains a database across the country that is supposedly more current and more local than NADA.

They will also tell you that they will take into consideration the pre-accident condition of the vehicle.

Your agent might know but I would be sure to ask if he/she is sure of how that is done. Moreover, given the value you stated and the typical costs to repair a motorhome it wouldn't take much damage to find yourself debating ACV with a claims rep.

If you purchase an agreed value policy be sure to read the loss payment clause of that policy and that you understand it. In other words, is there language in it which will allow the insurer to pay a lower amount. Let's say you get an agreed value and keep the policy and that amount for 5 years. Can they pay a lower amount? Can they, instead of paying the money, find one of similar condition and age and offer to pay that amount which could be lower.

Jim

Re: Insurance

Reply #5 – April 06, 2011, 11:34:04 pm

Quote from: Jim – April 06, 2011, 09:21:57 pm

Having worked for a national property/casualty insurer in their claims department for many years I would suggest one other question.

Awesome post, Jim. I've read many discussions over the years about RV insurance and yours offers a perspective others have not.

Our Progressive contract is up for renewal and I will definitely be looking closely at the clauses as they relate to loss payment. In our case, we had Total Replacement/Purchase Price coverage since we bought our coach at 1 year old. Now that it's 8 it's time to look (actually past time) closely at our coverage.

Karma to you!

Michelle

Re: Insurance

Reply #6 – April 07, 2011, 01:04:15 am

Quote from: Steve & Michelle – April 06, 2011, 11:34:04 pm

Our Progressive contract is up for renewal and I will definitely be looking closely at the clauses as they relate to loss payment. In our case, we had Total Replacement/Purchase Price coverage since we bought our coach at 1 year old. Now that it's 8 it's time to look (actually past time) closely at our coverage.

Karma to you!

Michelle

Thanks Michelle,

I started our RV insurance with Progressive as well but they got too expensive. We had total loss/replacement cost however, that reverted to ACV in our case as of 2011. Ours is a Florida policy and perhaps it is different from yours. Policy language can be different depending on the state due to state statutes.

I am now insured with GMAC. The replacement cost provision is good for the first 5 years and after that it is insured for what I paid for it and that coverage only applies if I replace it. If I don't replace it they pay ACV.

I know that policy language is more often than not a pain to read and hard to understand. Despite years of reading these contracts claims reps in our company often had to discuss the facts of an accident with co-workers when trying to determine how some coverages applied.

Jim

Re: Insurance

Reply #7 – April 07, 2011, 08:45:19 am

Quote

Having worked for a national property/casualty insurer in their claims department for many years I would suggest one other question. If my vehicle were declared a total loss how does your claims department determine the ACV of my vehicle. I personally don't know of any that use NADA for any vehicle although I am not familiar with all insurers so who knows. Many insurers use a third party that maintains a database across the country that is supposedly more current and more local than NADA.

Jims Comments are right on. And I mean no disrespect to Jims qualifications as a claims man.
Having totaled a 85 ORED my experience was that the 3rd party adjusters are less than helpful. WE ( I ) determined the ACV by a process of negotiation, the ADJUSTER ( ? ) I'm being kind, had no clue and was not even able to find someone who would repair it or make an estimate, FT declined to provide repair estimates without moving the coach 800 miles to NAC. CLAIMS Manager ( really a clerk ) acted as if she had never handled a Total loss. In the end I submitted documents to show the worth of the unit based on NADA, KELLEY and other sources and repair estimates from a reputable body shop and other sources and offered to purchase a unit of like kind and quality if they would agree to payment. We then arrived at a number acceptable to both of us. In the end I was satisfied even tho they were incompetent and I had to do the legwork. As a final gesture ( no not that gesture ), I told them that I would retain salvage and in their ignorance they agreed.
Your experience may be different but point is that ( I believe ) that few claims managers/adjusters have handled enough volume of totals that they really have any expertise.
In the end you can always hire your own ADJUSTER to work for you not the carrier.
Sorry for the rambling.

Re: Insurance

Reply #8 – April 07, 2011, 04:11:33 pm

Gary,

You did exactly the right thing. It is sad that you had to do that but producing evidence to support your value did the trick. Unfortunately, a lot of insurers out there have little experience in handling RV's despite what they may tell you. So, the claims rep while probably very experienced in dealing with your toad is in the dark on the RV. Moreover, insurance companies like many other businesses are cutting employees and thus making it hard to impossible to deliver good customer service.

Finally, claims adjusting burns workers out and there can be lots of turnover especially at the lowest level and thus you are dealing with less experienced people.

Jim

Re: Insurance

Reply #9 – April 08, 2011, 02:34:35 pm

Quote from: Jim – April 07, 2011, 01:04:15 am

I started our RV insurance with Progressive as well but they got too expensive. We had total loss/replacement cost however, that reverted to ACV in our case as of 2011. Ours is a Florida policy and perhaps it is different from yours. Policy language can be different depending on the state due to state statutes.

I am now insured with GMAC. The replacement cost provision is good for the first 5 years and after that it is insured for what I paid for it and that coverage only applies if I replace it. If I don't replace it they pay ACV.

Jim,

Once again, thank you for the advice to look at the policy verbage.

Ours being Total Loss Replacement/Purchase Price coverage, it *is* on the high side. So I looked at our policy renewal paperwork today and was pleasantly surprised to find that for vehicles older than the fourth preceding model year, the coverage pays the original purchase price of the totaled vehicle whether or not we replace it. (owners of newer vehicles aren't so lucky - if it's less than 5 years old, you have to replace or you only get ACV)

Or maybe instead of us thanking you, it should be Progressive, since I'll be renewing

We did have a fairly large comprehensive claim last year, and they settled it very quickly and to our satisfaction.

Michelle

Re: Insurance

Reply #10 – April 09, 2011, 08:34:08 am

Quote from: Steve & Michelle – April 08, 2011, 02:34:35 pm

Jim,

Once again, thank you for the advice to look at the policy verbage.

Ours being Total Loss Replacement/Purchase Price coverage, it *is* on the high side. So I looked at our policy renewal paperwork today and was pleasantly surprised to find that for vehicles older than the fourth preceding model year, the coverage pays the original purchase price of the totaled vehicle whether or not we replace it. (owners of newer vehicles aren't so lucky - if it's less than 5 years old, you have to replace or you only get ACV)

Or maybe instead of us thanking you, it should be Progressive, since I'll be renewing We did have a fairly large comprehensive claim last year, and they settled it very quickly and to our satisfaction.

Michelle

Michelle. I had a small comprehensive claim with Progressive last year also. Curious as to whether your premium went up after a claim?

Re: Insurance

Reply #11 – April 09, 2011, 10:25:46 am

Quote from: Horace B. Cupp Jr. – April 09, 2011, 08:34:08 am

Michelle. I had a small comprehensive claim with Progressive last year also. Curious as to whether your premium went up after a claim?

Horace,

Our premium did not increase with the first renewal after the claim (the claim was last March, the renewal was in May). The only thing that happened was our "disappearing deductible" reset.

This year I'm seeing an increase in the comprehensive portion of the coverage, but all other coverage costs went down. Since I'm hearing rates are generally up for this year's renewals I don't believe it's related to a claim over a year ago.

Michelle

Re: Insurance

Reply #12 – April 09, 2011, 10:37:27 am

Regarding insurance. What does the ACV stand for?

Re: Insurance

Reply #13 – April 09, 2011, 11:01:04 am

Actual Cash Value. and that is all I understand. How, why or wherethefor I don't know

Re: Insurance

Reply #14 – April 09, 2011, 12:29:54 pm

ACV stands for Actual Cash Value. This is determined by the carrier at time of loss by reference to various trade industries sales guides. Usually new car guides and auction values. It references the value of the item on the date of loss relative to the market prices and conditions as of that date. ( Yeah, I never did really understand it either ). In other words in April of 1928 the ACV for a Model A was probably 800 bucks. In April 2011 that same vehicle would probably have and ACV of many thousands. Or a 95 U280 was worth 300K as it sat on the showroom floor in 1995, twenty minutes later as the new owner drove it off the ACV was probably 20 percent less and so on.

Re: Insurance

Reply #15 – April 11, 2011, 05:46:49 pm

Gary's explanation is spot on. To add to his :ACV is a legal term meaning the value of an object determined by what an uninterested buyer would have to pay for the object being offered by an uninterested seller.

Re: Insurance

Reply #16 – April 11, 2011, 06:21:02 pm

Can anyone tell me if my RV insurance annual fee at $839.00 with $1k Deductable and ACV of $189K is within reason ? Is part of our overall package and I am curious.
Thanks

Re: Insurance

Reply #17 – April 11, 2011, 07:00:59 pm

Dave,

Within reason? You must have a lot insured with that company. Now, tell us who you are with so when my renewal comes do I can call them. Thanks

Re: Insurance

Reply #18 – April 11, 2011, 07:08:32 pm

Quote from: Jeff Savournin – April 11, 2011, 07:00:59 pm

Dave,

Within reason? You must have a lot insured with that company. Now, tell us who you are with so when my renewal comes do I can call them. Thanks

Jeff,

Dave does not full-time. Our rate increased once we began full-timing.

Re: Insurance

Reply #19 – April 11, 2011, 08:09:02 pm

Yes Cincinnati Insurance loves us

Re: Insurance

Reply #20 – April 11, 2011, 08:21:40 pm

Quote from: Dave M – April 11, 2011, 06:21:02 pm

Can anyone tell me if my RV insurance annual fee at $839.00 with $1k Deductable and ACV of $189K is within reason ?

It depends on the state/city you're insured in, but in the Dallas/Ft. Worth area, our purchase price coverage of not quite 2x your ACV with the same deductible is more than 2x the premium you're paying. From our point of view, it's well within reason.

Michelle

Re: Insurance

Reply #21 – April 12, 2011, 09:52:29 am

Dave, I'm a retired State Farm agent and I can't get the premium on my '98 that low in rural North Florida.

Re: Insurance

Reply #22 – April 13, 2011, 02:03:49 pm

Just got a $834 quote from Good Sams, GMAC, for a 1993 U225. We are still shopping insurance.

Re: Insurance

Reply #23 – April 13, 2011, 02:57:44 pm

Dave, that is about what we are paying on our U300, $1000 dedcutible. The U225 was considerably less. We are with State Farm. When I called GMAC through Good Sam' s they were almost three times as much as State Farm.

A lot of folks are with Geico and Progressive as well.

Re: Insurance

Reply #24 – April 13, 2011, 03:23:52 pm

I must guess our price has something to do with out large commercial policy, I have no idea, I just started to take an interest in what the DW has been doing for our different policy's when I came across the RV coverage. Guess we got lucky for once.

Affiliate Notice