Insurance over book value?

[BMSubie]

Hi All,

I am new to BMW's and the forum. I will be taking ownership of a 1997 E36 M3 on Monday. As we know, the book value and market value for these cars do not align. In the event the car gets totaled in the future, I do not want to take a big loss.

Are there any insurance companies that allow you to cover the car for say $12k, rather than the book value of half that?

Thanks

[BimmerBreaker]

I hope you didnt just pay $12k for an E36 M3... jesus...

Collector car insurance companies like Hagerty may insure it for it's full value but you will need proof the car is worth that much (may be unobtainable for an E36...). You will also be limited on the miles/year you can drive if you go through a collector insurance company.

What made this E36 M3 worth so much? Is it an LTW? Did you mean E46?

[BMSubie]

No, I didn't but it has a number of mods that would make the cost of rebuilding it to current spec $12k+

[Amir@AvusAutosport]

It depends on your insurance company. I have a few cars that have multiple times their value in modifications and they're all insured for well above blue book. I have progressive and basically told them what's been done to the cars and I pay a premium based on those values.

[BMSubie]

^Thanks, that's what I was looking for.

[BimmerBreaker]

You can insure modifications to a car, but you should consider if you want to or not.

If your car does get totalled, you have the option to buy it back. You dont think you would just be able to buy it back and take off the upgraded parts to swap to a replacement E36 or to sell to recoup the money?

If you end up never totalling the car, the difference in premiums will never be made worth it. If you dont pay for the difference in premiums by insuring the mods, and it gets totalled, you can buy the car back as stated above to recoup your money. So this would make me ask... why would you insure the mods instead of just making note to buy the car back if anyhting happens?

Just my .02

[thejlevie]

No, I didn't but it has a number of mods that would make the cost of rebuilding it to current spec $12k+

Book values never can consider mods to the car. But in a case where the value of the car is in question proof of mods done in the form of receipts for parts and labor can raise the book value.

[ross1]

"Book" value is typically generous. Asking prices, especially here, seldom reflect actual sale amounts. I'll sell you every car I own at "book" value.
Modifications diminish value to most people.
If your car is special buy special insurance and pay a special price.

- - - Updated - - -

It depends on your insurance company. I have a few cars that have multiple times their value in modifications and they're all insured for well above blue book. I have progressive and basically told them what's been done to the cars and I pay a premium based on those values.

I believe this is "declared" value. In the event of a loss you'd still need to prove up value. You could be disappointed.
I suspect the OP is looking for "Agreed" value which is just what it says. Car totaled? They write a check for the previously agreed value. I'm pretty sure you need a specialized policy for that. I stand to be corrected but this is my recollection from when I was in the market for such coverage.

[Matt Cramer]

No, I didn't but it has a number of mods that would make the cost of rebuilding it to current spec $12k+

In this case, it sounds like what you want is called an agreed value policy. You'll want documentation on the cost of the mods, etc, to prove you're not insuring it for more than what it cost you, and not all insurance companies will write this sort of policy. There's a good explanation of that here:

http://www.lelandwest.com/stated-val...-insurance.cfm

But the short version is that if you tell an insurance agency you want an agreed value policy, they'll know exactly what you mean.

[CVJETICANIN]

I have a boosted 98 M3 that has tons of aftermarket work done to it. I have it insured throught State Farm with an agreed upon value. They needed copies of the receipts and pictures of the vehicle. Depending on the amount agreeed on will determine your preminum amount.

[BMSubie]

Thanks for the info. I'll call State Farm.

[BMSubie]

FYI...I called State Farm and they do not do declared value insurance for post 1970 cars.

[Matt Cramer]

Try an independent agent; they will have access to several different companies.

[Das Omen]

I am learning a lot about insurance in general in here. Haha
I'm insurance company illiterate basically. All I know is I have progressive and pay $78 a month for my car.

[BMSubie]

Car got pretty banged up in a hail storm last week. Waiting for an insurance quote. Good thing it's only a $100 deductible. Probably a good $2000 of trim and body damage. The small dents became more apparent once I polished and waxed the car this weekend