I was told today that the market value of a 2004 MINI Cooper S, via Chubb Auto Insurance (typically very good) was $20,979.

My car is a loaded '04 MCS, which is significantly more than that value. MSRP is $26,049.

The local newspaper has 2002 MINI Cooper S's selling for $24k.

I wonder what the specific verbage is on this. I wonder whether the insurance company is only obligated to cover the BASE MSRP or the MSRP with an equivalently configured car with options. Obviously, $20,979 is a ridiclous number for a loaded '04 MCS.

I'm sure my attorney could get the real market value for the car in the event of a claim, but it's not clear that I want to deal with this.

Oh yes, and Chubb offers "agreed value" policies for yet more money than their already ridiclous premiums....Perhaps this is the way they attempt to sucker people into getting agreed value policies....Seems illegal.

Regards, Mark

 

That's too low. Go to http://www.edmunds.com and perform a Edmunds TMV used car value appraisal. based on your zip code, model, equipment and condition, their systems tells you the exact current value of your car based on your regional location.

 

Yes, I provided them with the Edmunds TMV. They don't seem to understand.

 

Get an insurance quote thru either AIG, State farm, Allstate or Progressive.

get at least 2 other quotes for basis comparison. To me it sounds fishy that Chubb is low balling you with the current market value of the car...Beware!

 

A response:

Mark

The market value was provided to using ISO symbol and vin number on the vehicle in question. Since this is a new vehicle and we have the vin number on this vehicle we put the vin number in the data base and ISO has given us a the value of $20,979 on the vehicle. Please remember that I have never stated this number is the absolutely the highest number that would be paid out if a you a total loss on your vehicle. It's a starting point and claims settlement can either go up or down depending on various factors including depreciation and what it would cost to replace you vehicle. That is why we always recommend that you keep all information pertinent to your vehicle.

ISO had given us the value for your vehicle based on the vin number. I would suggest you contact ISO to see why the value of your vehicle is $20,979.

Below is the Market Value definition used by Chubb

"Market Value" means the average retail value. The most current "NADA Book"
at the time the policy is issued (rounded to the nearest $100) is used as a guide. Market value does not include optional equipment that is not already considered in the book's option package code.

Please let me know if I can be of further assistance.

Personal Lines Manager
Chubb Personal Insurance

 

Mark, thanks for your quick reply.

 

usually the coverage provided by most personal auto insurance policies offer coverage for all permanently installed items on the car. Of course certain, items like upgraded stereo systems, unusual paint jobs, etc. fall into that gray area. where insurance to cover substantial upgrade or increase in value of the vehicle is required. In addition, they usually ask that vehicle be inspected by someone to document that the vehicle is worth the "agreed upon" value. However, in most instances items that you've gotten directly from the dealer are normally just covered under what's normally provided on a generic autopolicy.

personally, I'd tell Chubb;

1) that you bought coverage for the vehicle as you received it from the dealer.
2) that you provided all the information asked by their insurance representative when you purchased the coverage or added the vehicle to your policy.
3) that you were forth coming with all and any information that you had about the vehicle.
4) that all documentation and information that you had received from Chubb indicated to you that you were adequately insured in the event of a total loss.
5) that at no time, did any Chubb representative counsel you to get more coverage.

Then I'd ask them to;

1) show you where in the policy it clearly states that you needed to buy extra coverage.
2) what the name of their supervisor is.
3) what address you can use of theirs to copy them on a complaint letter that you plan to file with your state insurance dept.

anyhow, that's just me. hope things work out for you. good luck! I know that insurance companies can be a pain...

 

>>Oh yes, and Chubb offers "agreed value" policies for yet more money than their already ridiclous premiums....Perhaps this is the way they attempt to sucker people into getting agreed value policies....Seems illegal.
>>

I'm not saying that they are doing this. But, I'm kinda agreeing with you on this one. These policies tend to be more expensive per dollar of coverage. In addition, merely because they "agreed" on a "value" for the vehicle at the time the coverage was purchased, that is no guarantee that you'll actually get the "agreed value" at the time of a total loss. Why? Because coverage is usually only the "cash value" of the vehicle and not the "replacement value" of the vehicle. When a total loss occurs I'd bet money that even if you bought their "agreed value" coverage that they'd true to convince you that you vehicle had depreciated over time and that it was now worth less than what the initially "agreed value" was....

 

>>A response:
>>
>>Mark
>>
>>The market value was provided to using ISO symbol and vin number on the vehicle in question. Since this is a new vehicle and we have the vin number on this vehicle we put the vin number in the data base and ISO has given us a the value of $20,979 on the vehicle. Please remember that I have never stated this number is the absolutely the highest number that would be paid out if a you a total loss on your vehicle. It's a starting point and claims settlement can either go up or down depending on various factors including depreciation and what it would cost to replace you vehicle. That is why we always recommend that you keep all information pertinent to your vehicle.
>>
>>ISO had given us the value for your vehicle based on the vin number. I would suggest you contact ISO to see why the value of your vehicle is $20,979.
>>
>>Below is the Market Value definition used by Chubb
>>
>>"Market Value" means the average retail value. The most current "NADA Book"
>>at the time the policy is issued (rounded to the nearest $100) is used as a guide. Market value does not include optional equipment that is not already considered in the book's option package code.
>>
>>Please let me know if I can be of further assistance.
>>
>>Personal Lines Manager
>>Chubb Personal Insurance

actually, this is a really good and fair description of the coverage that most policies provide. so that's pretty cool. just keep your receipts and if possible any documentation that shows all of the options that you added to your car and you should be fine.

 

But remember Mark, you paid less than MSRP for the car. Whether it's Chubb, Allstate, or Mercury, they're not going to give you more for the car if it's a total loss than what you paid for it, regardless of the MSRP. If there's ever any question, they'll go to the invoice from the dealer.......................unless you pay for the "agreed value" policy.

You can get insurance with companies like Haggerty and list it as an "exotic" to get the agreed value, but there are mileage limitations.ike 2,500 miles a year which if it's your daily driver, you can forget that.

I'd find an insurer other than Chubb. Mercury charges us $250 for 6 month's coverage for each of our MCS's...and they are both daily drivers. The value is ACV or market value

Hey, just drive the car and quit worrying about a total loss---or don't you have it yet?

Charlie

 

I was just offered $26K for my totaled 2002 MCS from State Farm. And we haven't even started negotioating. The MSRP was $25K and change

It had pkgs 1, 2, 3 , Aero Kit, NAV, leather 18,000 miles

Forget Chubb...

_________________


http://www.miniswag.com - An MCO sponsor

 

After further communication with a Chubb representative, I suspect this was more of a case of an incompetent agent rather than Chubbs fault. Perhaps she was using this as a way to attempt to get an agreed value policy, which does not depreciate with them...In fact, you can set it up to appreciate for certain items.

For those unfamiliar with Chubb, they are an ultra premium insurance company that does offer lots of services that are difficult to find elsewhere....You wouldn't believe some of them. You pay for it, significantly.

Time to switch agents. This was her second chance and she blew it.

Thanks for the responses.

Now back to the regularly scheduled program.

Regards, Mark

-------------------------------------------------------------------------------------------

Mark

The market value shown on the policy is determined by using the "average retail price" given to us via NADA. This value is solely used to determine a value of the vehicle for premium purposes. We determine and charge you an auto premium based on this number. This number has nothing to do with the claims settlement on this vehicle. I refer you back top the definition of market value in your policy contact on page O-1. Average retail price will be different in other cities and states and we need an nationwide average so we can charge a premium for this kind of vehicle across the country.

"Market Value". If the vehicle is insured at market value, the amount of coverage is the average retail value of the vehicle.

At the time of claims settlement then everything that you have so eloquently sent me would be taken into consideration including options, average retail in the area, depreciation, and replacement cost. As an stated in an earlier e-mail to you it is possible that the claims settlement could be higher or lower than "average retail value. When all factors involved are taken into account you could actually have a settlement above $26,000. However their is no guarantee what the number will be until their is a loss. If you want to guarantee $26,000 we offer guaranteed replacement cost on the vehicle as mentioned earlier.

Hopefully this answers you question. Average retail cost is used for premium purposes not claims settlements.

Personal Lines Manager
Chubb Personal Insurance