by Andrea L. Algar
Motorheads Performance
In my series Keep Our Rides Safe, we're taking a systematic look at steps we can take as owners of classic cars, muscle cars, antique cars, street rods, hot rods and vintage trucks in order to keep our cars safe from theft.
 |
Car Theft is just one reason
you need specialty insurance |
We've looked at security when we're at home and on the road and even though more than one
third of all car thefts occur from a home or residence, it is all too common for owners of classic cars or muscle cars to procrastinate about insurance that will not only provide needed protection, but a lot of peace of mind! Many fear high prices, poor coverage, or too many restrictions being placed on use of the vehicle.
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 available, there are in fact many other options. Purchasing a policy for a "less-than-perfect" car, or one needing a restoration is also often avoided, but you should know that 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.
Specialty automotive insurance can help you recover from all types of loses including those from theft, fire, accidents and collision and other catastrophes that can happen when we least expect it, and certainly can occur when we're least prepared for them. We may insurance, but still have a policy that leaves us unprepared and poorly covered. How?
Some people rely on homeowner insurance to cover theft losses, especially when they have a project car needing restoration or a lot of repair before being put on the road. Most people have the notion that insurance is not needed unless they drive it, but this can result in costly losses. Not only can an insurance disallow a claim, but more than likely even if they do, a claim will result in far less than the vehicle's value. Homeowners insurance is not a good substitute for insurance designed especially for classic cars or trucks!
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, and perhaps even paying a premium for the privilege! Specialty insurance policies can be less expensive
than those through your standard insurance carrier even taking into account multi-car
discounts, alarm discounts, "clean driver" discounts and loyal customer discounts. Lumping your classic car coverage with your daily driver policy through Geico, Travelers, Progressive, Allstate or any of the other dozen automobile insurance carriers will usually end up costing you in the event of a claim. Why?
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. It is usually not the best choice for classic cars, antique cars, muscle cars or vintage truck.
Some auto insurers 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.
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.
Grundy
Worldwide Insurance
www.grundy.com 800-338-4005
* Grundy, a top pick for classic car insurance in Reviews.com's research
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 or 800-397-0765
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
NCM Insurance Agency (specializing in collector insurance for Corvettes)
http://www.ncminsurance.com 877-678-7626
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 catastrophe 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.
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."
I suggest
comparison shopping. Check the agency's rating, their level of customer
service, and details of the policies offered in addition to pricing. Research
all programs before making a final decision. Guy Algar advises, "Insist that the information provided truly allows you to compare 'apples to apples', and that similar language is used to address deductibles, payout limits, covered events, how values are determined, and of course exclusions that will not be covered at all. It reminds me of a story a customer retold of a friend's experience when, following a total loss, the claim processor matter-of-factly asked why they didn't have a policy that covered all the work done to the classic car. Well, the person simply didn't know that there were other options, and it cost them thousands."
Guy Algar and I believe that for such a low cost, collectors
insurance
is a worthwhile investment. We recommend Restoration Coverage for
anyone who is having partial or full restoration services performed on their
classic car, muscle car, antique car, vintage truck, street rod or hot rod. It can help give you added protection if you're taking your car to a professional restoration shop, as well as if you are performing the restorations yourself! You
don't want to be the victim of theft, fire, or other event that could jeopardize the time, money and energy you've put into finding your prized ride.
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.
