US Insurance- Agreed Value. What if someone else is at fault

[lotos]

So I'm preparing to switch my Elan's insurance from a standard policy at Geico to an agreed value plan to with Grundy or Hagerty, probably for $25,000. My understanding is that should the car be damaged but repairable, it's just like any other auto policy, you pay the deductible and get it fixed. But, if it's totalled out, you get whatever amount you bought (in this case, a check for $25k). So far, so good.

But, what if I am hit and I have to deal with the other party's insurance company? Aren't they just going to try and pay me "market value" (I dunno... $8,000? Who knows what crap they'd come up with) ?!? Or can you always go back to your own insurance for the higher value amount?

Anyone in the US care to comment? I'm always a defensive driver, but some people are too aggressive and reckless to avoid.

[tweetdriver63]

With normal insurance, if the other guy is at fault, you can either go directly to his insurance,or have yours pay for it and they will go after his insurance for reimbursement. I would imagine it would work pretty much the same way. Ultimately, the other guy's insurance would pay whatever they deem appropriate, then your would pay the difference. You might still get stuck with your deductible,but it would basically be like uninsured coverage for the diference.

This is all guesswork on my part, BTW.

[superbad]

Kind of unrelated, but curious: How do insurers take away the incentive for someone to write an agreed value policy for way more than their car is worth and then deliberately total it?

[tweetdriver63]

Kind of unrelated, but curious: How do insurers take away the incentive for someone to write an agreed value policy for way more than their car is worth and then deliberately total it?

I was curious about that too. I looked at one company's FAQ and among those found that they want to know about modifications (basic proof, descriptions, photos if appropriate), and that particular company would have you send them 5 pictures (more if you want): One from each side of the car, and one of the car in the garage, taken from a distance that shows the whole structure of the garage.

I've sent my insurance co an email to find out what they currently have my car's ACV at. I just told them I'm researching to make sure I have enough coverage. If you're wondering, the nada guide (which is the only one of the big 3 that lists a value for our Elans) currently says $10,000 (low retail), $12000 (average retail), and 20600 (high retail). I'm OK if my insurance co just goes by average retail, but a lot of people certainly wouldn't be.

[tigerdog]

From what I've seen of Grundy and Haggerty, they specialize only in collectable cars and as such, seem to vet the market pretty well. They will base the agreed value on the car's market value but also place a value on modifications and other work - just the opposite of standard insurers. they also vet the owner by looking at the other cars in his stable and his previous insurance record. I think the biggest protection against such fraud is the nature of the vehicles themselves. Most people looking for such a policy are hobbyists like ourselves who have a genuine love of the car. The risk of fraud is greatly outweighed by the nature of the majority of owners.

In other words, I really don't have a clue...

As to the original question, I'd suggest asking Grundy and Haggerty about this before taking out a policy. Also, carefully read the section on acceptable use. Grundy is pretty tight about use only for "club events" and the like. Of course on-track use is completely excluded. I'm thinking of looking carefully to compare Haggerty and Grundy's use policy before I renew in June. I'll let you know what I come up with.