Insured Value for Higher End Sandcar

I had State Farm for my old car, which was severely damaged (total loss) in a house fire. Through that whole ordeal, I learned a lot about dealing with insurance companies. When it came to the car, State Farm really lowballed me at first. In the first two rounds of offers, they used outdated and non-comparable listings to justify their valuation. I even provided them with current listings of identical cars that were actually for sale at the time, but they kept coming back with old ads that didn’t match the condition or specs of my vehicle. Eventually, they brought in a third-party appraiser, and I finally got close to what the car was worth, but it was a rollercoaster. Keep in mind, when I got coverage, I told them it was worth 100k.

One of the most important things I learned is to understand the difference between Actual Cash Value (ACV) and Replacement Cost Value (RCV). This determines how your insurance company pays out for a covered loss:
  • ACV: Pays the depreciated value of the item—what it's worth today, not what you paid for it.
  • RCV: Pays the full amount it would cost to replace the item with a new one of similar kind and quality.
Make sure you know which type of coverage you have. It can make a huge difference when you're dealing with a claim. I heard Hagerty Insurance is super good with classic cars and etc. That's who I'll be using next for my new car.
 
HBLOWEN said:
I had State Farm for my old car, which was severely damaged (total loss) in a house fire. Through that whole ordeal, I learned a lot about dealing with insurance companies. When it came to the car, State Farm really lowballed me at first. In the first two rounds of offers, they used outdated and non-comparable listings to justify their valuation. I even provided them with current listings of identical cars that were actually for sale at the time, but they kept coming back with old ads that didn’t match the condition or specs of my vehicle. Eventually, they brought in a third-party appraiser, and I finally got close to what the car was worth, but it was a rollercoaster. Keep in mind, when I got coverage, I told them it was worth 100k.

One of the most important things I learned is to understand the difference between Actual Cash Value (ACV) and Replacement Cost Value (RCV). This determines how your insurance company pays out for a covered loss:
  • ACV: Pays the depreciated value of the item—what it's worth today, not what you paid for it.
  • RCV: Pays the full amount it would cost to replace the item with a new one of similar kind and quality.
Make sure you know which type of coverage you have. It can make a huge difference when you're dealing with a claim. I heard Hagerty Insurance is super good with classic cars and etc. That's who I'll be using next for my new car.
Click to expand...

All good info and thanks for sharing. I’m aware of the difference between ACV and RCV. But given State Farm is literally the only coverage I can find, beggars can’t be choosers.
 
Same story. My policy was canceled by Allstate after 14 years. I contacted all the insurers mentioned here and quite a few more. In California, State Farm was the only company that I found that would insure for over $50K. Unfortunately, according to my broker, State Farm increased their off road policy premiums 100% in January 2025. What I learned through the process is that it is extremely beneficial to use a broker that knows what a sand car is and how they are used. Doing so reduced my premium by 25%.
 
HBLOWEN said:
I had State Farm for my old car, which was severely damaged (total loss) in a house fire. Through that whole ordeal, I learned a lot about dealing with insurance companies. When it came to the car, State Farm really lowballed me at first. In the first two rounds of offers, they used outdated and non-comparable listings to justify their valuation. I even provided them with current listings of identical cars that were actually for sale at the time, but they kept coming back with old ads that didn’t match the condition or specs of my vehicle. Eventually, they brought in a third-party appraiser, and I finally got close to what the car was worth, but it was a rollercoaster. Keep in mind, when I got coverage, I told them it was worth 100k.

One of the most important things I learned is to understand the difference between Actual Cash Value (ACV) and Replacement Cost Value (RCV). This determines how your insurance company pays out for a covered loss:
  • ACV: Pays the depreciated value of the item—what it's worth today, not what you paid for it.
  • RCV: Pays the full amount it would cost to replace the item with a new one of similar kind and quality.
Make sure you know which type of coverage you have. It can make a huge difference when you're dealing with a claim. I heard Hagerty Insurance is super good with classic cars and etc. That's who I'll be using next for my new car.
Click to expand...
Hopefully you can insure through Hagerty. I was informed by them that unless it is a street legal fiberglass bodied ( manx style) car they would not offer coverage. Same story with Grundy.
 
Dockmaster, my buddy just picked up his new Funco last month. He has it Insured through State Farm for 300k and he said his premium is $2500 a year. Let me know if you would like his Agents contact info.
 
Hondajimz said:
Dockmaster, my buddy just picked up his new Funco last month. He has it Insured through State Farm for 300k and he said his premium is $2500 a year. Let me know if you would like his Agents contact info.
Click to expand...
Yes, please. The State Farm agent I'm using got me a quote of $5400 for $275k.
 
Sandkist said:
Hopefully you can insure through Hagerty. I was informed by them that unless it is a street legal fiberglass bodied ( manx style) car they would not offer coverage. Same story with Grundy.
Click to expand...
I tried Hagerty and they would not insure mine. I have an existing policy with them for two classic cars as well but no dice on the sand car.
 
Hondajimz said:
Dockmaster, my buddy just picked up his new Funco last month. He has it Insured through State Farm for 300k and he said his premium is $2500 a year. Let me know if you would like his Agents contact info.
Click to expand...
What state does your buddy live in?
 
You must log in or register to reply here.
Back
Top