[YENKO DEUCE REGISTRY]

I am certainly no expert when it comes to insurance, so I can quote from this tech article written by Terry Shaw, Automotive Legal Service, 215-659-4947, Box 626, Dresher, PA 19025.

Terry writes:

"Additional research revealed there are, in fact, two types of stated policies. One is a 'stated amount' policy in which the premium is based on an amount stated by the insured. Losses, however, are still based on the actual cash value (ACV)of the property at the time of loss, but not to exceed the stated amount. To pay the stated amount automatically would create a moral hazard in that policy holders could overvalue their cars, thus making a profit. This is contrary to the basic principle of indemnity which is to restore a person to the position they were in before the loss.

The other is a 'stated value' policy, which is a true 'valued' type of policy where both parties agree, in advance, as to the value of the property. In the event of a total loss, the company will pay the full face value of the policy. It turns out this is an Inland Marine type of policy generally used with works of art, boats, and other marine equipment. There are a few companies, however, that do offer it as an automobile policy. This difference may be the reason for the wide misconceptions about stated value policies. Mr. Flippen, (person in article with total loss, who thought he had a stated value policy, but actually had a stated amount policy), asked eleven different Nationwide agents how the company would settle his stated value policy. None of them corrected him by saying it was actually a stated amount policy, five of them said the company would pay the full stated amount and five of them did not know. Only one actually knew the company would not pay the stated amount in the event of a total loss. He said he chose not to sell that type of policy because the insured pays an additional premium and receives no additional protection. In fact, the insured received less protection. The standard indemnity policy pays the ACV at the time of loss with no limit on the company's liability. The stated amount policy still pays the ACV at the time of the loss, but the company's liablility is limited to the stated amount... The insured pays an additional premium for the 'privilege' of limiting the insurance company's liability."



I have found that my normal auto insurer would offer me a 'stated value' policy, and they knew it was normally for boats, art, ect... but they charged 3x the premium that the classic car insurance company's do.
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