Does Hagerty keep their valuation prices inflated?

[Mark Wilson]

I've temporarily put off the idea of selling Annie to fund the business expansion as the opportunity is being pushed out a few months. But, the insurance renewal is coming up soon, so I'm researching to get an update on value. The Hagerty valuation tool shows my 73 S Targa with 70K miles, which I estimate to be between a #2 ($163K) and #3 ($120K) condition at roughly $140K. It then adds 10% premium for factory air and 10% for a 5 speed(WTH). That puts the value at roughly $168K. First off, I think the 10% adder for a 5 speed is ridiculous and an extra 10% for factory air which also seems inflated.

Discounting those adders, even the $140K seems above the market right now. My question - does it seem Hagerty is behind the curve in their values? Is it possible this is done on purpose to keep premiums up? thx

[Stretch32]

I always thought the valuation tools were somewhat low although this may be for # 3 and #4 cars. If you look at their definitions of each category then actually go shopping for said car in their price estimate you'll be sorely disappointed. Good luck finding a fairly rust free driver early 911T for $45K or a solid driver 356C for low $50's. They may be optimistic in the category 1 and 2 cars but I think their value on "drivers" is way off current asking prices I've seen. Maybe cars are just selling much cheaper than it appears?

Stretch

[mobius911]

I think they try to call the values fairly. Back 2 or 3 years ago when the market was on a tear they were consistently low, so I don't think there's some hidden agenda to set prices above market. That being said, valuing these cars is tough and I'm sure their numbers aren't perfect.

The bumps for options might have made sense when these were $25,000 cars, but I agree those adjustments are nuts now.

[silverc4s]

Always found Hagerty valuations to be accurate. You must be objective in placing the car in the correct category according to their descriptions. Or pick the condition of your car and subtract one level ��

[Mark Wilson]

Always found Hagerty valuations to be accurate. You must be objective in placing the car in the correct category according to their descriptions. Or pick the condition of your car and subtract one level ��

I think I fairly evaluated Annie at a 2.5, but still think Hagerty has her value ~10% to high. Maybe I'm splitting hairs...

[NorthernThrux]

I think they are fair. After all, they have to pay out at those values if there is a loss, so inflated values aren't in their best interest. I have had a number of offers over the year on my early car and they have always tracked the Condition 1 prices. Most recent offer was considerably higher, but that may be because the car is closer to completion and actually looks like something one could drive.

Ravi

[csbush]

Isn't it essentially agreed upon value insurance, so the values are just a guide? If you total the car, they are going to come down and argue with you that it was a 2.5 when you had it insured as a 1?

[silverc4s]

Isn't it essentially agreed upon value insurance, so the values are just a guide? If you total the car, they are going to come down and argue with you that it was a 2.5 when you had it insured as a 1?

No. The agreed value is what you have the car insured for and pay premiums based on.

Edit: at time of insurance, Hagerty may ask for photos of your car, or even an appraisal, before finalizing policy.

You may increase or decrease the value yourself, with the same proofs being possible.

[NorthernThrux]

No. The agreed value is what you have the car insured for and pay premiums based on.

Edit: at time of insurance, Hagerty may ask for photos of your car, or even an appraisal, before finalizing policy.

You may increase or decrease the value yourself, with the same proofs being possible.

Every year I have had to send them pics of the restoration progress, and they've been helpful with setting the valuations, which are consistent with what I see from other sales in my area, including RM Auctions, which is a local company.

Ravi

[silverc4s]

Isn't it essentially agreed upon value insurance, so the values are just a guide? If you total the car, they are going to come down and argue with you that it was a 2.5 when you had it insured as a 1?

I think this is closer to the definition of Stated Value Insurance. Never us d it personally, so not certain.