classic car insurance

I am confused (a normal state for me). As much as I want to save money, more important is knowing my insurance compay to step to the plate and cover me for the type of activities I want to do with my car and not cancel me if I mess up.

I asked my "regular" agent (a State Farm Guy) about classic coverage. He told me that they do offer it but it is obviously writted for "garage queens". When we discussed my uses, I was clearly outside of their parameters and a "regular" policy (with limited miles and some commuting allowed) was closer to my needs. There are exclusions for speed events (must be timed) but participation does not affect me (unless I file a claim which certainly will be denied).

It seems to me that the selection of an insurer needs to address the users planned use of the vehicle. This seems to be in the following categories:

1-Parades, club events, weekend drives;
2-Commuting to work while daily driver is ill;
3-Commuting to work (while choosing to leave daily driver at home);
4-Participating in non-competitive "Speed Events" like DE;
5-Participating in comptitive events (i.e. timed or otherwise measured) like AutoX and Rally (?).

All of the classic polices (Haggerty, Sneed, etc) seem to cover #1 above. Beyond that, things get muddy really quickly. Some, it seems, will deny coverage even if you only plan participate in "banned" activities.

To the customer (me), it is hard to get a straight answer as, it is my understanding that your agent cannot bind the company to any details not clearly outlined in the policy. This is the domain of the underwriters who are not as forecoming to commit coverage in writing to the retail customer.

Perhaps some of you in the industry or who have actually filed claims can provide some illumination as to how to sort this out.

Quote:

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Originally Posted by 72targa

I'm insured by State Farm. I pay about $100 annually.

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But at what value for the car? I can't believe they'd give you an $30,000 indured valuation on the car for $100/yr. My conventional insurance company wanted to give me sticker price minus straight line depreciation! :eek: That left my car valued at about $5000, which wouldn't cover a fender bender.

Hagerty wrote me a stated value policy for $335

Included:
highest liability they offer
stated value of $60,000
no deductible

I checked all of the usual companies and most have too many restrictions. Specifically, I wasn't going to install an alarm system to get coverage, I didn't want a mileage restriction, and I wanted to be able to drive the car to work if it was a nice day and I felt like it and still be insured.

I ended up with Aon, which is a big company and I'm surprised no one has mentioned them. They have a specific collector car line. Modified from stock cars are ok. No appraisal, although I had to submit some online pictures to my local agent. About the only restriction is the car isn't your daily driver. I get an $25k agreed value policy with $250/$500k liability coverage from them for $280 a year. In the Bay Area, no less.

Even better, you can get a online quote and also submit your application online -

http://www.aon.com/us/indiv/collector_car_insurance.jsp

For the database:

I have a Hagerty premium due on my '69. They upped it to $328/year. It was $200 + last year. Maybe they had a lot of insured cars in Louisiana.

I went to the American Hobbyist website and got a quote of $211 for the same coverage. They're part of AAA and you have to be a member.

FWIW,
Sherwood

PS: I went to Aon's website per John's suggestion and received a quote of $100 for same coverage as Hagerty and AAA. Too good to be true?

I have used Parish Heacock Classic Car Insurance for about 3 years. I pay about $300 for my 71 S. They have been very easy to deal with....but, I've never had to file a claim with them. Has anyone had any experience with this insurer? -Mike

One question: How can an insurer of a classic car for say $350 a year, stated value, allow it to be driven as a commuter, to the mall, to the coast, on a fun run, etc for that rate and not lose their shirts in claims? The simple answer is they can't. That's why the impose restrictions. And knowing insurance companies, they don't like to pay if you are doing something out side of the agreed upon rules.

This was borrowed from Leland West:

* Annual Mileage: Annual mileage may not exceed option selected (2,500 or 5,000 miles). If the annual mileage limit is exceeded, your policy may be non-renewed.

* Normal Driving: No coverage while driving to and from work, school or while being modified or restored by a third party.

* Racing & Track Events: No coverage while using the covered auto for racing, gymkhanas, driving school, instructional course or other track events.

* Business Use: No coverage while the covered auto is used for any business or commercial use.

* Coverage Suspension: All policy coverages are annual and may not be suspended in whole or part.

* Parking: The auto must ordinarily be parked overnight in a completely enclosed, locked garage accessible only to you or members of your immediate household. Should you change the covered auto's regular garage, coverage at the new garage is only afforded after it has been submitted for review and express written approval has been given for its use. Should the covered auto be left at another location for sale or at any public parking lot or garage, no coverage is afforded. This also applies to cars that are being restored or customized.

For the Sports Purpose MInded: * Alterations: Any modification of the covered auto except to restore it to its original condition is generally not acceptable. Full details of any changes must be submitted along with the completed application.

So I ask again, how do they keep their rates so affordable for collector cars? That's why I changed to my insurer for full coverage with no restrictions at stated value. Yes, I pay more, but I don't worry about the potential of getting screwed or having to lie to save my butt.

Rick,
Of the websites I recently visited:

All were "Agreed Value" (not the same as a regular policy)
- Most have a mileage limit/year. Some, you had a choice of mileage limit; 1000/2500/5000 miles. One had no limit.
- All had a category for modified cars as well as stock. Most don't insure kit cars or replica cars.
- All had the same general driving restrictions (pleasure only, no business use, not as backup transportation, no racing, etc.)
- Some had a limited DE coverage

Insurance companies have acturarial (sp) departments who do nothing but study the odds for anything that can be insured, then structure their polcies accordingly. They calculate that classic car owners take better care of their cars than the general public, hence a lower risk.

Sherwood

Thanks Sherwood,

Maybe I am not reading Leland West's site correctly, but it does say, "describes our program's special features (like Agreed Value)" "Each policy includes Liability, Uninsured or Underinsured Motorists (unless you reject it), Medical Payments (or No Fault in states where appropriate) and Comprehensive and Collision on an Agreed Amount basis." Mabe this is just a Leland West 'exclusive'.

Haggerty says:
# Usage. Hagerty covers vehicles that are used on an occasional basis -- e.g. club functions, exhibitions, organized meets, tours and limited pleasure driving.

Haggerty on the surface doesn't look nearly as restrictive as LW, but what if I want to drive it to work on a nice day, or for a night out, or to run an errand? Does all that come under 'pleasure driving'? It sounds like a stretch to me, reading between the lines.

Anyone had a claim for one of those 'iffy' conditions with Haggerty who can share their experience?

Thanks,
Rick

AFAIK, most of the big names have the same limitations, be it Leland West, grundy, Hagerty, Parish heacock etc... They are cheap but you need to have a modern daily driver and impose severe restrictions on your "classic" driving. Most painful: you can't ever drive it to work, EVER....

If you're like me and like old cars (356 and 911), it sounds great because you get a full year coverage for $200 or so, and each additional car is only like $100 extra - you pay liability only once... However if you read the fine print, it seems that if they wish to, they can nail you in 10 different ways. Over the phone they all claim it's OK to drive to the mechanic or to the ice cream store, but in reality, read the contract... I am not so comfortable with them anymore (I have Hagerty and they "seem" great), because I tend to want to drive my oldie wherever, whenever, just less often and lower mileage than my daily driver. Sneed has been mentioned on other boards and they actually allow "occasional drives to work to show the car to your friends" ! That sounds more friendly but they cost 30% more than Hagerty for me, and don't do the "one liability" thing...

And regular insurers don't really have a cheaper agreed value low miles policy for old cars, so that you could drive whenever, wherever you want... They warned me a regular policy would value my 911 as $3500 and 356 even less !!!

If anybody's got a solution, I am all ears ! I'd love to be able to drive my 73 to work, say once a week, and the 356 a couple times a month. Gonan give Sneed a shot, we'll see...