Liability or Full Coverage Insurance?

[dieselenthusiast]

I won't mention his forum username, but a friend of mine on this forum just had his XJ stolen. It was a nice looking (modified) 2000 XJ. Anyway, it got me thinking about my XJ and the level of insurance that I have. At the moment, I have liability insurance only. I have a 2007 Liberty KJ and 2006 Ram Cummins that have full coverage, but my XJ has been more of a work/farm/ranch vehicle. With that being said, I have a fair amount of money into my XJ and it does look nice. Now I'm wondering if I should add full coverage insurance to the XJ. What do you guys/girls think or recommend on a vehicle that's 14 years old? Obviously, I would have to get insurance based on what I think my Jeep is worth, otherwise, the vehicle isn't worth much just in stock condition.

 

[Glenn B]

For my new project (2001 XJ), I got full coverage, and added in an extra 5k in insured modifications. Didn't cost all that much.

 

[USMCGunrock]

Thanks Diesel
http://www.naxja.org/forum/showthread.php?p=246023048#post246023048

It's my daily driver and I do have premium full coverage on it. Just got done talking with my insurance so now it's just a waiting game to see what will happen. I hope it gets recovered. I've put in a lot of "street" modifications on it just so it can get me to work any day. Funny thing is last nite I just got a new set of 007 injectors for it and was talking to a buddy of mine to get an upgraded alarm system to be installed this weekend. :'(

 

[kcmudbug]

I keep full coverage on mine. It's an extra $10/ month. It would take many years of the $120 extra expense to offset the cost of its replacement if something were to happen to it. Not only should theft be considered, but there are lots of uninsured drivers out there...and they like to do the hit and run...ask me how I know.

Bottom line for me is if I don't have cash on hand to replace it, I will keep full coverage on it.

 

[dieselenthusiast]

For my new project (2001 XJ), I got full coverage, and added in an extra 5k in insured modifications. Didn't cost all that much.

That's good to know. I'm calling my insurance company today to get price quotes.

 

[dieselenthusiast]

Thanks Diesel
http://www.naxja.org/forum/showthread.php?p=246023048#post246023048

It's my daily driver and I do have premium full coverage on it. Just got done talking with my insurance so now it's just a waiting game to see what will happen. I hope it gets recovered. I've put in a lot of "street" modifications on it just so it can get me to work any day. Funny thing is last nite I just got a new set of 007 injectors for it and was talking to a buddy of mine to get an upgraded alarm system to be installed this weekend. :'(

Like I said, I know how you feel. When I had my 1985 Monte Carlo SS stolen in college, I was extremely disappointed and felt extremely violated. Like everything that I have worked hard for, I took good care of that car. I was fortunate that my insurance company gave me a fair check for the loss. They found the Jeep two weeks later in some field. The police report suggested that the car was professionally stolen and taken to a well organized chop shop where it was completely torn apart. When I saw what was left of the car, I didn't recognize it.

Are Jeep's considered a high theft item??????

 

[MikeMc]

For my new project (2001 XJ), I got full coverage, and added in an extra 5k in insured modifications. Didn't cost all that much.

What company? I tried that a while ago and it was super expensive.

 

[Glenn B]

Geico.

What company? I tried that a while ago and it was super expensive.

 

[SeeingSpots]

The technical term for what you're looking for is called Agreed Value; which is basically an additional amount of coverage over-and-above what the depreciated book value is. Without it, all a claims adjuster will give you is just the ACV (Actual Cash Value) of a stock XJ without any modifications.

Agreed Value will adjust the coverage limit to factor in things like lifts, bigger tires, body mods, etc...which is why it is SO important that you keep receipts and recent pictures of your modified vehicles to show an adjuster in the event of a claim. And not all insurance carriers offer Agree Value options, so you have to call around and find out which ones do in your State.

Jim

 

[iluv83vettes]

Bottom line for me is if I don't have cash on hand to replace it, I will keep full coverage on it.

Diesel, I know you have talked about in your build thread having no debts. This would be my determining factor as well. I have full coverage on my XJ and my virago 250 motorcycle (only worth like $1500 but full coverage for the year is only like $90).

 

[dieselenthusiast]

The technical term for what you're looking for is called Agreed Value; which is basically an additional amount of coverage over-and-above what the depreciated book value is. Without it, all a claims adjuster will give you is just the ACV (Actual Cash Value) of a stock XJ without any modifications.

Agreed Value will adjust the coverage limit to factor in things like lifts, bigger tires, body mods, etc...which is why it is SO important that you keep receipts and recent pictures of your modified vehicles to show an adjuster in the event of a claim. And not all insurance carriers offer Agree Value options, so you have to call around and find out which ones do in your State.

Jim

Jim, thanks for the info. Not that I was calling into question what you said, but you are correct in what you did say. I called my insurance agent today and added comprehensive insurance. The cost with a $1,000 dollar deductible only increased my insurance by a measly $13.00 dollars every 6 months. No brainer, right? In the meantime, my insurance lady is going to give me some prices on an "Agreed Value" based on the my requested $10,000 overall coverage.

 

[SeeingSpots]

LOL.....no worries. I'm glad you did. Never take someone's word for face value when it's involving the protection of your assets - I tell everyone that. There's a lot of bad advice out there.

Fortunately (or unfortunately) I went to school for Risk Management so if you guys ever have any insurance related questions, I'm your Huckleberry.

 

[dieselenthusiast]

Diesel, I know you have talked about in your build thread having no debts. This would be my determining factor as well. I have full coverage on my XJ and my virago 250 motorcycle (only worth like $1500 but full coverage for the year is only like $90).

Part of being debt free is making good financial decisions. It's not critical that I have full coverage on our Cherokee, however, we've been replacing the OE parts with upgraded parts and modifying the vehicle as we go. I'm somewhat in a different position today than I was when I first purchased it fours years ago. Additionally, I've not taken the time to fully educate myself on insurance, or I would have added comprehensive insurance from the very beginning. For some reason, I thought adding comprehensive insurance would significantly impact the cost. I was wrong.

 

[MikeMc]

Geico.

Thanks.

I just got off the phone with Geico and here's what they told me:

If the value of the customizations are over 50% of the value of the vehicle they will only cover 10% of the customizations.

Me:
- Vehicle = About $1500
- Customizations = $7000. I sent them a detailed spreadsheet and they said no on almost every item except the lift kit and tires/wheels. The person even asked a supervisor.

Geico, "We will not cover most of those items." Even if they did cover every item it would only be $1500 + (10% * $7500). "And a Jeep is not considered a classic car so they won't do that either."

If there's any more details how you got your Jeep covered I'd love to know since theft is my biggest concern.

 

[USMCGunrock]

That's a great thing there Diesel!

I hope what happened to me will not happen to anyone else..but this is the real world we live in. Too many asshats here.

 

[dieselenthusiast]

LOL.....no worries. I'm glad you did. Never take someone's word for face value when it's involving the protection of your assets - I tell everyone that. There's a lot of bad advice out there.

Fortunately (or unfortunately) I went to school for Risk Management so if you guys ever have any insurance related questions, I'm your Huckleberry.

Okay Huckleberry, I got a question. We do not have collision insurance on any of our vehicles. In your opinion, is that something you think we should add? In general, how much does it cost to add it?

I don't think insurance or insurance companies are bad, however, I also know the odds fall into their court. We only buy a vehicle if we can pay cash for it, otherwise, we do not buy a vehicle. Part of being a good steward of money is making good financial decisions, which I think we are learning to do and becoming better as we go. At what point do you take a higher risk?

 

[SeeingSpots]

Okay Huckleberry, I got a question. We do not have collision insurance on any of our vehicles. In your opinion, is that something you think we should add? In general, how much does it cost to add it?

I don't think insurance or insurance companies are bad, however, I also know the odds fall into their court. We only buy a vehicle if we can pay cash for it, otherwise, we do not buy a vehicle. Part of being a good steward of money is making good financial decisions, which I think we are learning to do and becoming better as we go. At what point do you take a higher risk?

Well that all depends if you're in a PIP state or not; and if New Mexico allows a Homestead protection. In Colorado, our collision limit not only covers our vehicle, but the OTHER person's vehicle as well. So an example would be, if I hit someone with my car, and it was my fault, then my Collision limit would cover both of our cars. It's not like that in every state. For instance, in Massachusetts when I worked there, they were not an "At-Fault" state which means that if two people were involved in an accident, each of their insurance would only pay for THEIR car; so it didn't really matter who was at fault.

If there is bodily injury involved, however, that would fall underneath your liability - which hopefully is $1M at a minimum.

 

[dieselenthusiast]

If there's any more details how you got your Jeep covered I'd love to know since theft is my biggest concern.

HappySlappy, I'll let you know what Progressive offers me.

 

[dieselenthusiast]

SeeingSpots, according to my insurance lady, Collision only covers what I hit. If I hit a deer, then I'm covered, but if I were to slide off the road and hit a tree, then I would not have coverage. I'm not sure what my liability is. I'll call and find out though. Thanks!

 

[MT Mike]

SeeingSpots - given your past experience in the business, what insurance company (companies?) would you recommend doing business with?