Insurance question

[ace944gs]

Hey all- getting ready to do an e350 4x4 conversion, and eventually will add a topper (pop top or hard, tbd), and a modular interior build that allows the van to be a people hauler on weekdays and l easily convert to a camper on weekends.

I'll be building this out over time, but obviously at the end of it all it's going to make a 15-20k base van a lot more expensive.

My question is about insurance. I've got State Farm for the daily drivers, and when I called them they indicated I'd only have to insure the van as an unbuilt vehicle (so, it's cheap since it's really low cost to replace). If the van gets totaled, and I've got receipts for the rest of the build (4x4, sleeping set up, electric, etc), they'd cover that since it was added onto the vehicle.

The agent gave the example of window tint or new wheels/tires on a regular car- technically that would be factored into a total loss payout as long as I have receipts, even though I'm not paying for it as a premium on the policy.

Does this sound right to others who have built their own rigs? Insurance companies are not charitable organizations...and this arrangement seems like a way to enter into a long argument with State Farm only to be disappointed in the payout.

what have others done? I'm not wed to State Farm...but would be great to stay with them if possible since I get all the long time customer/ good driver discounts...

thanks in advance!

 

[Farfrumwork]

I also have State Farm. We bought a 2017 4x4 Sprinter cargo van new, then added a SMB penthouse and LOTS of other stuff to make our camper.

When we talked to our agent he said we could insure it for more of a market value, rather than a cargo van + parts. We took lots of pictures, keep the main receipts, and then assigned a market value (more than the van + parts cost. ~2x the van cost alone). This way, if the van is totaled or stolen we can go buy another (built-out) van if we wanted.

It added ~$400/yr to the insurance cost for the van (but that premium increase also included higher limits as we added an overarching umbrella policy, which requires higher limits on all your vehicles. State Farm has our home and all our cars policies)

 

[motovan_mn]

If the van gets totaled, and I've got receipts for the rest of the build (4x4, sleeping set up, electric, etc), they'd cover that since it was added onto the vehicle.

The agent gave the example of window tint or new wheels/tires on a regular car- technically that would be factored into a total loss payout as long as I have receipts, even though I'm not paying for it as a premium on the policy.

Does this sound right to others who have built their own rigs?

I have state farm and that is what my agent told me as well. However, when I pressed him on it, he told me IF they had to pay out for a total loss, they would be very unhappy about it. When I kept pressing him about it, they finally admitted they can modify the value of my van, thus raising my premiums.

The fact that it is all so wishy washy didn't leave a great taste in my mouth. I shopped around but most insurance companies didn't want to do a stated value policy, so we stuck with state farm for now.

 

[rruff]

Sounds like you persuaded them to charge you more for no good reason...

If the agents are telling everyone that you are insured for full value, then that must be their policy. Instead of going through the trouble of valuing your rig individually, they lump everyone together. You were getting a good deal.

 

[ace944gs]

Sounds like you persuaded them to charge you more for no good reason...

If the agents are telling everyone that you are insured for full value, then that must be their policy. Instead of going through the trouble of valuing your rig individually, they lump everyone together. You were getting a good deal.

Agreed, but this is exactly what seems sketchy... curious if other agencies are better and more direct?

I know people who are still arguing with State Farm from wildfires burning down their whole house, 3 years later. These vans are luxury toys, and I don't want to sign up for a headache over a 50% or even 100% increase in premium.

but, I agree with not volunteering to give more money away haha!

curious what othersare doing...might call some of the van builders and report back here...

 

[Sheep Shagger]

My question is about insurance. I've got State Farm for the daily drivers, and when I called them they indicated I'd only have to insure the van as an unbuilt vehicle (so, it's cheap since it's really low cost to replace). If the van gets totaled, and I've got receipts for the rest of the build (4x4, sleeping set up, electric, etc), they'd cover that since it was added onto the vehicle.

Ask if there is a limit to this. Most / all policy's have limit to how much value in aftermarket accessories are covered (which is what they are suggesting here with the receipts). It's usually $1~3k which is not going to come close to your build.

If you are paying premiums against (what the insurance company has listed as a $20k vehicle) and expect to be paid out at $40+k, it's simply not going to happen. If you can classify / register as RV, then you will get super cheap insurance, other than that, make sure it's some form of stated value policy if you want to get full market value on a 4x4 conversion van.
The only slight wiggle room here is on a Quigley conversion, since that was (or could have been) ordered from the factory as 4x4, but that still wouldn't cover any of the other upgrades.

 

[moorejames]

What's usually needed is a "stated amount" or "agreed value" policy. Basically, you and the insurance company agree up front on what your rig is worth and that's what it is insured for, and what your premium is based on.

Lot of companies don't/won't write these types of policies, and most agents don't like the extra work involved, but they are out there and available.