Need some advice on this… I’ve got a 2006 Subaru Forester XT, which is basically a WRX in a Forester body. My insurance is with Amica, but they say my car is only worth around $4,000. That’s way off—I paid $8,500 for it from a friend, and in my area, they’re selling for way more than that.
Tried explaining this to my insurance rep, but they just dismissed me. Is there any way to get them to adjust the value? Or should I be looking at a different company that actually understands what my car is worth?
I daily drive it, and I’ve seen plenty of cars like mine get totaled over minor damage. I just don’t want to pay out of pocket for repairs while also paying for insurance that won’t actually help me when I need it. Any advice?
Unfortunately, the actual cash value is $4,000 no matter what you paid for it. If you want coverage based on the price you paid, you’ll need an insurance company that offers an ‘Agreed Value’ policy (look that up). If you find one that will cover daily driving and not just collector use, let me know because I’m in the same boat.
I bought a 2003 Crown Victoria with 50K miles for $7,200, which is a steal in the Crown Vic community, but insurance values it at $3,000. I tried finding a company that would do agreed value for a daily driver and had no luck. Ended up putting it on a collector policy, but now I can’t drive it regularly.
Most of these are dealer prices, so actual selling prices may be 10-15% lower, but even then, you should be able to prove your car is worth more if it ever gets totaled.
Unfortunately, cars like ours aren’t seen as valuable outside of their fan base. As they age, insurance will keep dropping the value, even if the market doesn’t. It’s annoying, but that’s just how they do it.
@TEXIANA
Thanks for the info. I brought it up when I was on the phone dealing with my wife’s policy. The guy kind of brushed me off but threw out the $4K number.
I get that these cars have an enthusiast market, but it’s still frustrating that insurance just ignores it.
@Fintan
Insurance companies don’t care what you could get another one for. They look at what the car is technically worth based on their data, which isn’t always accurate. People overpay for cars all the time—it doesn’t mean insurance will value them higher.
@Dorian
But how do they decide what it’s worth if they haven’t even seen my car? Wouldn’t they need to consider mileage and what similar cars are actually selling for?
Fintan said: @Dorian
But how do they decide what it’s worth if they haven’t even seen my car? Wouldn’t they need to consider mileage and what similar cars are actually selling for?
That’s a good question. I’m not familiar with Amica’s exact process, but usually, valuations for totaled cars factor in the vehicle’s condition. The problem is, your insurance rep isn’t physically inspecting the car. They’re probably just using some standard database.
So yeah, I don’t know their exact method and don’t want to mislead you.
@Dorian
I might try talking to a local agent who can actually look at the car in person. Only issue is, it’s modified, so they might raise my rates instead of giving me better coverage.
@Fintan
Yeah, more coverage usually means higher rates. If the valuation goes up, your premium might increase too, but probably not by a crazy amount. At least that way, you’d actually be covered if something happens.
It might be worth having an independent appraiser check it out, but make sure Amica will even consider it before you spend the money. Some companies accept third-party appraisals, but some don’t. Check your policy or call them and ask first.
@Dorian
Insurance valuations are based on standard calculations, not what someone thinks a car is worth. The price a buyer and seller agree on is separate from how insurance looks at it.
Your car is technically worth zero until someone buys it for a price. What you paid doesn’t change the formula they use.
Dorian said: @TEXIANA
What someone pays for a car doesn’t change its actual value. The insurance value is based on data, not what a buyer is willing to shell out.
Dorian said: @TEXIANA
What someone pays for a car doesn’t change its actual value. The insurance value is based on data, not what a buyer is willing to shell out.
Alright, you win.
Lol nah, just sharing what I know. We’re all just trying to figure this stuff out.