Your (USA) 1M is likely under-insured (unless you have "replacement value" coverage)

[gar777]

If you have a standard auto policy (in the USA), like GEICO, then, if your prized 1M is totaled, they will pay you the insurance industry "actual cash value." They determine this value using NADA and KBB values, rather than the amount you would have to pay to replace your beloved 1M.

This approach works fine for ordinary cars, like Honda Accords or 135i's or even M3s. For these cars, in general, there is a readily-available supply of replacement cars within a 100 mile radius and lots on the market at any time so the "book" values are close to what you could buy a replacement car for. In other words, if you total a 2012 Accord V6 auto with 20K, you should get roughly enough to buy another 2012 Accord V6 auto with 20K.

However. for limited production cars, like the 1M, the book values are lower than market and the result is that you would get much less than you could buy a similar replacement car for.

I recently bought my 1M and insured it with my existing carrier, GEICO. I paid around US$55K for the car. If it gets wrecked, GEICO will value it like an ordinary car. GEICO's primary source for value is NADA, which says it's worth $46-49K. They also use KBB, which says $53K. So, let's call it $50K.

I could not replace this car for that. In essence, I am self-insured for ~$5K. That is a very large deductible (in addition to the $500 deductible on my policy).

To get replacement value, I think I would need a policy which provides for replacement or at lease for an "agreed value" in the event the car is totaled. While these policies are fairly common for "classic" cars (generally at least 15, 20 or 25 years old), they are not common for "modern collectibles."

Even if there was a company offering a "modern collectibles" policy in the USA, my understanding is that this type of policy would include restrictions on mileage, how the car is used (like maybe no commuting to work), etc.

Does anyone have a modern collectibles policy which insures their 1M for full "replacement value" or for an "agreed value"? If so, who is the carrier? I would like to look into this further.

[1&done]

Could question, I will follow up on this w/ a good friend who is in the biz. I am in the same boat as you

[M3 Adjuster]

Most Insurance companies pay ACTUAL CASH VALUE (ACV).

in order to find the actual cash value of the vehicle they will do a market search and find the price of the vehicle based on market values.

I am a long time e30m3 owner. That vehicle is difficult to find examples for sale. I do recommend owners of that vehicle to get a stated value or agreed value policy.

Keep in mind that SOME agreed value policies still have an Actual cash value settlement value.

Right how and the next several years it likely will not be hard to find 1Ms for sale in order to determine a value. So a regular auto policy will suffice.

Need an example? I have a friend that totaled his 1M. He was paid 60k as ACV from his insurance company for a loaded 1M that was 54k originally. His car had 19k miles when it was totalled.

For those that feel better with an agreed value policy, go right ahead. But to be perfectly honest it's not necessary right now when there are many examples available for sale to use as " comparables" in order to establish a value.

Btw, for those owners of black 1M, they may want to request that their evaluations only include that color as black was produced on about 20 percent of production models and is easily more rare than Valencia orange or white.


Several years ago I handled a total loss on a Ford GT ( the new one). The owner's vehicle was black and red and silver were the most common. After being offered a value that would pay for a red car he turned it down and stated that
He wanted to purchase another one in black. So the search was narrowed to only vehicles that are black, and the ACV jumped 14 from 139k to 153K.

I would expect similar changes in value based on color alone to occur on other vehicles like the Porsche gt3RS, and pretty much all Ferrari models.

[Dackelone]

Originally Posted by M3 Adjuster

Most Insurance companies pay ACTUAL CASH VALUE (ACV)...

^^Good stuff buddy!

[Mahlzeit]

Wow thanks Adjuster, and OP for bringing this to light.

I'm smarter now. Thanks.

[LeifW]

Originally Posted by M3 Adjuster

Most Insurance companies pay ACTUAL CASH VALUE (ACV).

in order to find the actual cash value of the vehicle they will do a market search and find the price of the vehicle based on market values.

I am a long time e30m3 owner. That vehicle is difficult to find examples for sale. I do recommend owners of that vehicle to get a stated value or agreed value policy.

Keep in mind that SOME agreed value policies still have an Actual cash value settlement value.

Right how and the next several years it likely will not be hard to find 1Ms for sale in order to determine a value. So a regular auto policy will suffice.

Need an example? I have a friend that totaled his 1M. He was paid 60k as ACV from his insurance company for a loaded 1M that was 54k originally. His car had 19k miles when it was totalled.

For those that feel better with an agreed value policy, go right ahead. But to be perfectly honest it's not necessary right now when there are many examples available for sale to use as " comparables" in order to establish a value.

Btw, for those owners of black 1M, they may want to request that their evaluations only include that color as black was produced on about 20 percent of production models and is easily more rare than Valencia orange or white.


Several years ago I handled a total loss on a Ford GT ( the new one). The owner's vehicle was black and red and silver were the most common. After being offered a value that would pay for a red car he turned it down and stated that
He wanted to purchase another one in black. So the search was narrowed to only vehicles that are black, and the ACV jumped 14 from 139k to 153K.

I would expect similar changes in value based on color alone to occur on other vehicles like the Porsche gt3RS, and pretty much all Ferrari models.

Great post! Very informative.

Thanks
Leif W.

[Dee Pee]

I spoke with a nice rep for USAA named Michael out of their Scottsdale office about this. He said that USAA's adjusters don't go by KBB etc. alone in their assessment. They also look at market value and other factors.

Bottom line: it's ACV of the car minus the deductible with them.

They're the only company I've had for auto and homeowners. When my 01 M roadster got smashed and my loft got flooded the treatment I received was exemplary.

A lot of guys here either have USAA or are eligible for it so if you're with them, you're squared away.

[tapout2taxes]

There is no set value determined and the end number can be negotiated like everything else. My brother totaled his car and was able to negotiate a high value based on the resale it was getting plus pictures he had showing the condition he kept the car and he was even able to get them to reimburse him for some of the maintenance he did within a year of the accident (I believe it was tires obviously not like an oil change). This was all with Mercury. I did something similar when my car was totaled because an idiot drove into my wheel well. They came with a figure and I showed them why their figure didn't make sense. Of course each company will be different but my experience is the KBB number is just one factor in their determination but the market is usually another factor too.

Just FYI as well, when I graduated college I was seriously considering getting a 69 Camaro and getting insurance for it to be a DD was going to be a challenge and would have required them sending out someone to inspect the car and they wanted limited mileage.

[gar777]

OP here. Thanks for all the replies and helpful info! I'm still looking into this and will add to the discussion if I find anything useful.

For now, it's nice to be part of the community and to finally own a 1M! Black one, btw (didn't know they were rarest when I bought it)

There! I just finished post #2. Feels good . . .

[ItsHectic]

I insure my cars well above market value, my car is insured for enough that if it gets stolen I could buy a new M235i with the money.

In my last car I negotiated to have the stereo system insured for theft and added to the previously negotiated value in the case of vehicle theft.

I should probably do that for the mods on my current car.

[Redadair]

M3 Adjuster, I also own an e30 M3 and I am wondering who you insure yours with? Is it insured for a set value. If so does it include mileage restrictions etc.

Thanks bud

[m3kerry]

Thanks for the write up mark

[E30 Racer]

Originally Posted by Redadair

M3 Adjuster, I also own an e30 M3 and I am wondering who you insure yours with? Is it insured for a set value. If so does it include mileage restrictions etc.

Thanks bud

My low mileage E30 (5.1k) has collectors insurance with an agreed value policy. It's inexpensive at about $350/year for $30k coverage, but restrictive (can't use it as a DD even temporarily). Perhaps this is an option for those of you who don't drive your cars often enough to justify conventional insurance?

[Redadair]

^ Thank you for the comments. This may be the way I end up going. I don't DD my M3 and I don't see me driving even 2K miles a year on the car.

[Poofyo101]

I have 4 e30 M3s. They are insured through hagerty collectors car insurance.

[Redadair]

^ Details of restrictions from Hagerty? Mileage use etc

[LOVEM]

Originally Posted by Poofyo101

I have 4 e30 M3s. They are insured through hagerty collectors car insurance.

MIND selling one ?