Motorheads Performance
After the recent article I wrote on the theft of a Pro-street Camaro from the parking lot of a hotel during the Goodguys National Show in Ohio, a lot of comments clucked about how awful it was, how far too frequently it happens, and what little chance the poor owner had of recovering the beautiful little car. I'm sure if we all put ourselves in his shoes, or imagining a car fire like the one in the video below, we would truly be devastated. It reminded me that I had written an article on the benefits to classic car insurance, and I thought that this would be a great time to reprint it! So, here's the original article, adding a few thoughts in hopes you see the value in the comparatively small cost of these unique policies, do your homework in finding what is best for you, and actually take the third and final step to purchase it....now!
Thankfully this is not a Motorheads Performance Customer Project!
Classic Car Insurance Buys Affordable Protection & Peace of Mind
Taking the steps to purchase a policy for an old classic car, muscle car or street rod which may be far from "show room perfect" is usually avoided. Many fear high prices, poor coverage, or too many restrictions being placed on use. Some enthusiasts think that these types of insurance are available only for vintage autos that only drive once a year in parades, and while this is an option, there are in fact many other options out there and they're not as expensive as you might imagine. Standard auto premiums can cost up to 500% more than specialty insurance policies. And, you can usually find a policy which is just right for your particular needs.
Many people select a policy from their traditional auto insurance carrier, not realizing that this can be robbing them of valuable coverage not offered by standard auto insurance. Specialty insurance policies are also less expensive than those through your standard insurance carrier (even policies with multi-car discounts). Standard auto insurance typically pays "Actual Cash Value" (ACV), also called "depreciated book" or "replacement cost minus depreciation." The older a car is under this type of policy, the less value it has - regardless of the premium you pay. Some offer a "Stated Value" policy. These are better than an ACV policy because they allow you to "state" a value greater than its depreciated "book" value. But, the Stated Value policy still depreciates vehicles. The best collector policy is called "Agreed Value" - meaning the full insured value of the vehicle is guaranteed - no depreciation and no hassling with an adjuster trying to prove your vehicle's value.
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| Try explaining this one to your insurance company! |
One example is a policy offered by Grundy Worldwide Insurance called Collector Car Insurance. This insurance is very affordable, and YOU have control over much of the cost because you actually work with Grundy to arrive at an "Agreed Value" when your policy is written. If an accident or theft occurs, you receive the agreed upon value - no questions asked! A car with $20,000 in restoration costs could be insured for about $120 per year. There are no restrictions on the number of miles you can drive, or how often you drive, as long as it is not your daily driver. (See other insurance options below for daily drivers.)
Another policy for collector cars offers coverage while your vehicle is in the process of being restored. What's unique about Restoration Coverage is that the policy value can increase as the restoration continues. So, as the value of your car (and the money you have invested into it) grows, so does the amount of coverage on your policy. We think this is a terrific "peace of mind" policy, and embraces the gift of classic car restoration - to get out on the road and enjoy your ride!
For more information on insurance for your classic car or street rod, try contacting the following insurance companies who specialize in these policies.
www.grundy.com 800-338-4005
Hagerty Classic Insurance
www.hagerty.com 231-941-7477
J.C. Taylor Insurance
www.jctaylor.com 800-345-8290
Heacock Insurance Group
www.heacock.com 800-677-5171
Leland-West Insurance
www.lelandwest.com 800-237-4722
American Collectors Insurance
www.americancollectorsins.com 800-360-2277
Classic Auto Insurance
www.classicins.com 800-360-2277
Rally Insurance
www.rallyinsurance.com 800-801-1823
Condon & Skelly
www.condonskelly.com/ 800-257-9496
Northeast Classic Auto Insurance
www.classiccarinsurance.com 800-866-6440
"Chrome" by American National
http://www.anpac.com/ 800-333-2860
American Hobbist
http://www.americanhobbist.com/ 800-395-4835
Collector Car Insurance Agency
http://www.collectorcarins.com/ 800-787-7637
Sneed Insurance
http://www.sneedinsurance.com/ 800-619-7827
Motorsports Insurance Services
http://www.motorsports-insurance.com/ 310-301-0333
Other options exist as well, including policies for Daily Drivers which are usually far less than going through a traditional auto insurance company. Some companies do require that you own another vehicle for "daily use", but you do not need to have it insured through them. Some put restrictions on mileage while others do not (especially if you have another vehicle as your daily driver). And, just as some place mileage restrictions, some restrict what type of driving you do (i.e. parades or shows only), and age restrictions (most will not insurance drivers under 25 years of age...others 30!). Many companies offer all-in-one policies which insure all of your vehicles at significant savings.
A note to anyone who owns a street-strip car is to take the time to find an insurer who will issue a policy for that use. If you don't "come clean" up-front, and your car catches fire at the drag strip, many insurers will not pay out on a claim unless you had a rider for racing. It doesn't hurt to be honest about how you use your vehicle, and it's a lot better than having a zero payout when catastrophie strikes. You put yourself in a position of higher risk, so take the time to protect yourself. There are insurance plans for just about every type of enthusiast out there.
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| Day at the Drag Strip... gone BAD |
Appraisals are usually never necessary, although most require photos of your vehicle to help determine value. Some insurers may dig a little deeper into the mechanical and aesthetic modifications made to your car, its horsepower, suspension system, paint, etc, but this usually helps to give you a higher Agreed Value if desired. Guy Algar states, "Don't forget to contact your insurer once the restoration is complete so that new values can be determined and you can increase your coverages if needed, or if you started off with Restoration Coverage and want to change to a different type of policy. We advise you to keep all of your restoration records including the detailed lists of the work performed, photos, and receipts for all your parts and labor, as this will help greatly when establishing the new value of your vehicle."
ABOUT THE AUTHOR:
Andrea L. Algar is co-owner of a classic car performance and restoration design shop in Leesville, Texas. Motorheads Performance specializes in repairs, maintenance, performance upgrades and restorative work on cars and trucks from the 1920’s through 1970’s. Her husband Guy L. Algar is a Mechanical Engineer with over 25 years experience. He holds 5 ASE Certifications from the National Institute for Automotive Service Excellence and has been working on old cars and trucks for over 37 years. Together they share their passion for old cars and trucks with other enthusiasts from around the country.