Hagerty
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Joined: Apr 2007
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From: Louisiana
Hagerty
I know there are a number of members here that insure their S2000 through Hagerty and I had a question about an email I've been getting from them. I originally insured my car for $30k after buying. About a year later with prices on the rise and not really putting miles on it, I upped the coverage to $35k. Now, not even another year later, Hagerty is now sending emails that my car may be undervalued and they are recommending moving coverage to $41k. Is this a sales tactic? I'll be honest, it feels like one but I am a skeptic. I know my car is now worth more than $35k but I'm not sure it's reached the $40k+. Anyone else get these emails?
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Joined: May 2014
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I know there are a number of members here that insure their S2000 through Hagerty and I had a question about an email I've been getting from them. I originally insured my car for $30k after buying. About a year later with prices on the rise and not really putting miles on it, I upped the coverage to $35k. Now, not even another year later, Hagerty is now sending emails that my car may be undervalued and they are recommending moving coverage to $41k. Is this a sales tactic? I'll be honest, it feels like one but I am a skeptic. I know my car is now worth more than $35k but I'm not sure it's reached the $40k+. Anyone else get these emails?
Joined: Aug 2012
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I'm sure their recommendation is meant to leave cushion so they don't have to nag you every couple months to increase a little more.
They realize their customer base will be upset if total loss arises and AV ends up not being enough, while not mind a small increase in premium.
They realize their customer base will be upset if total loss arises and AV ends up not being enough, while not mind a small increase in premium.
Joined: May 2015
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I don't have AV even though I probably should. If your car is sub 30k miles with a paint matched hardtop, it's arguably a $40k+ replacement value.
Hagerty's business value is in serving the enthusiast market. The purpose of the AV policy is so that, without haggling or hassle, you could replace your car. Hagerty has likely seen that, as values increase and people don't update their value, they have people arguing for a higher replacement value if/when something happens. That's a lose/lose for them. They have 2 bad options:
1. They pay out 40k to satisfy the customer but the premiums the customer has paid for the last 3 years have been based off the 35k number. Across a large number of cases, they theoretically lose money.
2. They stick to the Agreed Value, like they should, and have a dissatisfied customer who was not reimbursed the full value of their car.
I bet they have this automated at this point that they'll receive notifications to check on X policy's valuation if the current AV is x% or x # off the value their modeling shows. Or it could be based on X model car appreciating over a certain time window and check all policy valuations from that model.
Hagerty's business value is in serving the enthusiast market. The purpose of the AV policy is so that, without haggling or hassle, you could replace your car. Hagerty has likely seen that, as values increase and people don't update their value, they have people arguing for a higher replacement value if/when something happens. That's a lose/lose for them. They have 2 bad options:
1. They pay out 40k to satisfy the customer but the premiums the customer has paid for the last 3 years have been based off the 35k number. Across a large number of cases, they theoretically lose money.
2. They stick to the Agreed Value, like they should, and have a dissatisfied customer who was not reimbursed the full value of their car.
I bet they have this automated at this point that they'll receive notifications to check on X policy's valuation if the current AV is x% or x # off the value their modeling shows. Or it could be based on X model car appreciating over a certain time window and check all policy valuations from that model.
Thread Starter
Joined: Apr 2007
Posts: 897
Likes: 211
From: Louisiana
I don't have AV even though I probably should. If your car is sub 30k miles with a paint matched hardtop, it's arguably a $40k+ replacement value.
Hagerty's business value is in serving the enthusiast market. The purpose of the AV policy is so that, without haggling or hassle, you could replace your car. Hagerty has likely seen that, as values increase and people don't update their value, they have people arguing for a higher replacement value if/when something happens. That's a lose/lose for them. They have 2 bad options:
1. They pay out 40k to satisfy the customer but the premiums the customer has paid for the last 3 years have been based off the 35k number. Across a large number of cases, they theoretically lose money.
2. They stick to the Agreed Value, like they should, and have a dissatisfied customer who was not reimbursed the full value of their car.
I bet they have this automated at this point that they'll receive notifications to check on X policy's valuation if the current AV is x% or x # off the value their modeling shows. Or it could be based on X model car appreciating over a certain time window and check all policy valuations from that model.
Hagerty's business value is in serving the enthusiast market. The purpose of the AV policy is so that, without haggling or hassle, you could replace your car. Hagerty has likely seen that, as values increase and people don't update their value, they have people arguing for a higher replacement value if/when something happens. That's a lose/lose for them. They have 2 bad options:
1. They pay out 40k to satisfy the customer but the premiums the customer has paid for the last 3 years have been based off the 35k number. Across a large number of cases, they theoretically lose money.
2. They stick to the Agreed Value, like they should, and have a dissatisfied customer who was not reimbursed the full value of their car.
I bet they have this automated at this point that they'll receive notifications to check on X policy's valuation if the current AV is x% or x # off the value their modeling shows. Or it could be based on X model car appreciating over a certain time window and check all policy valuations from that model.
Went ahead and bumped up the AV. Annual premium went up by ~$13.60/month. Worth it in my eye.
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