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USE THIS AS REFERENCE NOT GOSPEL!!
DO YOUR OWN RESEARCH TO CONFIRM ALL OF THIS IS STILL FACT.


By: Michael Modica

If you are fortunate enough to own a classic car – or any collectible automobile – then
you want to ensure that your luck does not run out because of having inadequate
insurance coverage. Call it covering your butt – or covering your “asset” – but by all
means, call one of the major providers such as American Collectors, Haggerty, or
Parish Heacock insurance companies and let them put you in the driver’s seat in terms
of professional protection of your cherished automotive investment.

How to Kick the Tires on Classic Car Insurance

The whole idea of insurance is that it needs to do what you expect of it in an
emergency, when the rubber really hits the road. And classic car insurance is as
different from conventional auto insurance as, well, a classic car is from your run of the
mill generic vehicle.

When you buy a classic car insurance policy, you are essentially purchasing protection
for those times when - God forbid and knock on wood it doesn’t happen – disaster
strikes in the form of a fire, a collision, or an act of theft or vandalism. Just as we now
have modern airbags to save us in the event of a crash, we also have collector’s car
insurance, to protect us with adequate moneybags when calamity throws a wrench in
the works.

The time you invest in choosing the right classic car insurance coverage is well worth
the value and peace of mind that a quality collector’s insurance policy delivers for
owners of classic motor cars.

The Nuts and Bolts of Classic Car Insurance Coverage

Collector car insurance is not the same as the insurance you buy for normal coverage of
your daily transportation. Collector car insurance, or classic car insurance, is made
especially for the needs of the car collector. And while ordinary insurance does offer
some protection, no matter what you drive, it can leave you high and dry in the event of
a loss that it not effectively covered by the terms of the insurance contract.

For example, you may have a garage-kept 1970 Camaro Z28 you bought back in 1978
for the princely sum of $2,000. Dealers are offering you $15,000 for it, and you saw
another one sell at an auto show for $22,000. If you don’t have special collector car
insurance or classic car insurance, and the car is totaled, you will be lucky to get your
“original” $2,000 back for it. Don’t take that chance. Get proper classic car insurance
today!!

Stipulations or requirements normally encountered while shopping for collector
car insurance or classic car insurance:
• A decent driving record.
• At least 10 years driving experience
• No teen drivers on the policy or drivers with poor driving records
• Secure and out of the weather garage
• Proof that you have another car for daily transportation
• Collector vehicle insurance is sometimes limited by the age of your car, and if your
car is too young it may not qualify for a particular policy.
• Limited mileage. You probably don’t want to drive your creampuff car all the time,
and your insurance company doesn’t want you to either. Mileage limits have
increased recently, though, so if you can live with 250 miles a month you’re probably
okay.

Coverage with collector car insurance or classic car insurance:

Three kinds of value are important to understand when buying your policy.

1) Actual cash value:

This is what you usually get with ordinary insurance, and is based on replacement
cost minus depreciation.

2) Stated value:

The insurance company pays up to the stated value of the car, but may not
guarantee the full stated value. And deductibles of up to $1,000 usually apply.

3) Agreed value:

In most jurisdictions, those who provide collector car insurance or classic car
insurance are allowed to insure for a value that you and your insurer agree upon.
And for most autos, there is no deductible. If your $100,000 vintage Rolls get
trashed, you get a check for 100 grand, plain and simple – which is exactly why
collectors use special classic car insurance coverage.

Do a periodic review of your coverage limits, because classic car prices are rising.
What you insured your cherry classic for ten years ago may be a fraction of what it’s
worth today. And if you are restoring a vehicle, ask your agent to give you appropriate
insurance. There is no need to pay extra based on mileage statistics, if your car is up on
blocks with no engine inside it. And as the car’s value increases thanks to your hard
work of restoring it, you should raise the coverage to keep up with the added value of
the restoration.

Keep all your receipts and paperwork – for everything from parts and labor to
expenses incurred to take it to a classic car show – so that you can document the total investment your collector’s car represents. And take photos and keep them updated, for
the same reason.

And Last But Not Least: Special Savings Opportunities

As long as you meet the criteria in terms of how you use and take care of the car, you
can usually buy a policy.

Traditional insurers will either refuse coverage, offer only a replacement value based on
the nuts and bolts (minus heavy depreciation) of the car, or will charge you a prohibitive
amount for the premium. But many collectors find that special collector’s coverage
saves them money – as much as half – while insuring them for higher limits, sometime
three or four times what a traditional company gave them.

Yes, it’s possible to get collector’s insurance coverage for full market value for your car,
and save up to 50 percent off of the premium you’d pay with ordinary insurance. That
makes classic car insurance a must-have for any serious car buff.

Below is information about three of the most reputable and dependable collectors
and classic car insurance companies in the USA (All information listed below
subject to change, please contact the insurance companies listed to be sure.):

Hagerty Insurance
P.O. Box 1303
Traverse City, MI 49685-1303

Email: auto@hagerty.com
Toll Free: 800-922-4050

Qualifications:

• Similar to the others listed below, but please contact Haggerty for details.

American Collectors Insurance
P.O. Box 8343
Cherry Hill, NJ 08002

Email: info@americancollectors.com
Toll Free: (800) 360-2277

Qualifications (subject to change or regional laws so check with the company for
specific up-to-date information).

• At least 15 years old
• Garage-kept • Driven on a limited, pleasure-only basis (up to 5,000 annual miles - available in most
states)

You may also qualify by:

• Having at least 10 years driving experience
• Having a good driving record
• Having at least one "regular" vehicle for every licensed driver in the household

You may request a policy application either directly from American Collectors
Insurance or through your local insurance agent (rates are the same either way).

Parish Heacock Classic Car Insurance
P.O. Box 24807
Lakeland, FL 33802-4807

Email: info@parishheacock.com
Toll free: (800) 678-5173

Qualifications (subject to change or regional laws so check with the company for
specific up-to-date information).

• Each household member of driving age must have at least 10 years driving
experience or be excluded.
• Each household member must have a regular use vehicle less than 15 years old that
is insured with liability limits equal to or higher than the limits being applied for on the
collectible vehicle.
• All licensed members of household and any other drivers of the vehicle must be
listed on the application.
• Maximum of two accidents or violations in the household, maximum of one per
licensed household member in past 3 years. No major violations permitted in past 5
years.
• A Driver Health Questionnaire must be completed for all drivers over 70 years old.
• Auto must be stored in a locked permanent garage facility when not driven.
• Auto may not be used for commuting to or from work or school, used for business
purposes or as a substitute for another auto.
• Autos not covered while on a racetrack or when being used for: racing, speed,
driver’s education, or timed events.
• Must display pride of ownership: well maintained, in restored or well-preserved
condition.
• Vehicles under restoration must be stored at residence or a restoration shop, with a
target date for completion. Agreed value coverage is not available on cars under
restoration. Eligibility subject to company review.
• Replica Vehicles and Pro Street vehicles are subject to company review.
• Trucks and Jeeps must be over 25 years old, and not be used for towing, hauling,
off-road or utility use.

GRUNDY FAQ

1) When did the antique automobile hobby begin?

In 1936, the President of Grundy Worldwide's grandfather, Samuel E. Baily, dragged a 1909 Pierce Arrow out of a Philadelphia scrap yard and subsequently totally restored the vehicle to original condition. It is still running today and has not been restored since. The Antique Automobile Club of America recognizes this as the origin of our hobby.

2) When did antique car insurance originate?

In 1947, Jim Grundy Sr. employed the theory of Agreed Value comprehensive and collision, with the same coverage that Grundy Worldwide sells today. Other insurers who recognize that Grundy's basic formula was and is the superior coverage for old cars have imitated Grundy's theory.

3) What is Agreed Value?

An Agreed Value Policy, as opposed to a Stated Value or Actual Cash Value Policy, is the only way to know in advance how much you will receive from an insurance company if your car is destroyed or stolen. With Agreed Value, you will get the amount listed on your policy, and it is also the basis of your premium.

4) Is my car covered while parked outside or left unattended?

Underwriters will want to know that you take extraordinary care of your collector car and will require that you have a garage for it when it is not in use; however, leaving a car unattended or in the driveway overnight is not the basis for denying a claim. Insurance companies and their policies are carefully regulated by 50 separate state Insurance Departments to protect you from unclear, hidden or fine-print exclusions.

5) What is the importance of a financially strong Insurance Company?

Insurance Companies are rated on their financial strength and claims paying ability in the event of a catastrophe. Best's Guide rates carriers between A++ and B-. Whenever possible, you should consider this rating before purchasing coverage. Grundy Worldwide uses A++ and A+ rated carriers for our Collector Vehicle Program.

6) How much insurance should I carry on my car?

You should always insure your car for a recent purchase price or current market value. In the event of a partial loss to an underinsured vehicle, the company could total your car. If you had it insured for less than its true value, you would suffer a financial loss. With each renewal, you should review your values to ensure you are current with market trends.

7) Is there an age limitation for the vehicle, or are some models excluded from eligibility for collector vehicle insurance?

In most states any vehicle in excellent original or restored condition, that used and maintained as a hobby vehicle, can be considered for classic car insurance by Grundy Worldwide. (Other carriers have age limitations).

8) How many miles can I drive my car each year?

Grundy offers Unlimited Mileage! -- The Grundy Family owns cars dating back to 1908, and recognizes that an attempt to monitor or audit mileage would be nearly impossible. In addition, the Grundy's personally drive thousands of miles a year through participating in organized touring events and driving simply to enjoy and maintain their cars. You can too!

9) How does Grundy Worldwide handle a claim?

Small claims can be adjusted within a few days simply by submitting an estimate and a photo of the damage with a claim report. Larger claims are reported to Grundy's home office who assigns them to an adjuster near you and then monitors your settlement to make sure it is prompt and fair.

10) Is Grundy Worldwide licensed in my state?

Grundy Worldwide's carriers are licensed to sell collector vehicle insurance in all 50 states, including Massachusetts, South Carolina, Alaska and Hawaii. If you are from one of these states, you know how hard Grundy Worldwide has worked to support your insurance needs.

11) Can Grundy Worldwide help if I take my car out of the country?

Yes. Grundy Worldwide's carriers offer a host of coverages including Ocean and Air Transit, Foreign Liability and Physical Damage Coverage extensions in most foreign countries. If you are planning a trip overseas, contact Grundy Worldwide's underwriting department at least 2 weeks in advance to obtain the necessary coverage you will require.

HAGERTY FAQ

http://www.youtube.com/watch?v=hSvuv6YcJpk
Heacock Classic Collector Car Insurance
Classic car insurance rates are lowered to reflect the restricted usage and increased care that collector cars typically receive. We carefully underwrite each account for acceptability into this preferred, low cost program.

Driver Eligibility

* Each household member of driving age must have at least 10 years driving experience or be excluded.
* Each household member must have a regular use vehicle less than 15 years old that is insured with liability limits equal to or higher than the limits being applied for on the collectible vehicle.
* All licensed members of household and any other drivers of the vehicle must be listed on the application.
* Maximum of two accidents or violations in the household, maximum of one per licensed household member in past 3 years. No major violations permitted in past 5 years.
* A Driver Health Questionnaire must be completed for all drivers over 70 years old.

Vehicle Usage

* Autos we insure must be stored in a locked permanent garaging facility when not in use.
* Autos we insure may not be used for commuting to or from work or school, used for business purposes or as a substitute for another auto.
* Autos we insure are not covered while on a racetrack or when being used for: racing, speed, driver education, or timed events.

Vehicle Condition and Valuation

* Must display pride of ownership: well maintained, in restored or well-preserved condition.
* Vehicles under restoration must be stored at residence or a restoration shop, with a target date for completion. Agreed value coverage is not available on cars under restoration. Eligibility subject to company review.
* Replica Vehicles and Pro Street vehicles are subject to company review.

To Apply for Coverage, Simply Provide the Following

* A completed and signed application.
* Recent color photos of each vehicle to be insured.
* A copy of your family auto insurance declaration page.
* Payment for the annual premium. Visa and MasterCard payments are acceptable with authorization form. (Payment by Credit Card is not available in NC.)

After we receive your submission, it is logged into a tracking system and reviewed for acceptability. You will receive a status (accept, decline, or more information is required) via fax or e-mail usually within 24 hours of receipt. (This does not include mail time.) Incomplete applications will be held pending information for 14 days. At that point we will close our file.
Great article. Thanks, Joe.

Sheesh, it appears Parish Heacock wants to insure only trailer queens.

Another classic insurer I've heard good things about is Grundy.

Does anyone have suggestions for insuring a project car? For example, if I pony up $10,000 for a project car, then strip it down to a rolling chassis and drop at my local body shop for a few panel replacements, what type of insurance should it have, if any? I'm thinking it would be a good idea to keep at least some kind of liability policy on any car in my name. But I admit, I don't know. Huh
Hagerty has it ! I just got it on my car today. You don't even have to send pics !
1-800-922-4050
Because I just got a 1997 Mercedes SL500 I wanted to check my options before signing on with any insurance company. You can always tell when Im researching something because that info usually ends up here! Laughing

Anyway I learned after my wife wrecked the BMW that there is a huge difference between Market Value and Agreed Value. From now on whenever possible I'm going with Agreed Value. Grundy is good with this, providing there's some special circumstance with the vehicle.

Grundy has offered me 384.00 per year unlimited car show and event mileage with an Agreed Value of 25000.00 with no deductible.

My regular insurance (The Hartford) cant even touch this coverage and wants to charge me more than double! Loser
Good information!

I have State Farm Classic Car insurance on a 1971 Ford Maverick (my teenage son's car), as well as on my 1971 F-250. I cannot tell you how they will pony up if there is a claim. I will look into Hagerty because I too would like to insure my 73 Mach 1 that is the project of these post.
(05-10-2011, 12:51 PM)Mach 1 Club Wrote: [ -> ]Because I just got a 1997 Mercedes SL500 I wanted to check my options before signing on with any insurance company. You can always tell when Im researching something because that info usually ends up here! Laughing

Anyway I learned after my wife wrecked the BMW that there is a huge difference between Market Value and Agreed Value. From now on whenever possible I'm going with Agreed Value. Grundy is good with this, providing there's some special circumstance with the vehicle.

Grundy has offered me 384.00 per year unlimited car show and event mileage with an Agreed Value of 25000.00 with no deductible.

My regular insurance (The Hartford) cant even touch this coverage and wants to charge me more than double! Loser

I'm glad to hear Grundy was able to take care of you. I'll be sure to look them up if I ever, finally, get a project car. I saw a Grundy rep on "My Classic Car" awhile back. I didn't realize they had been around such a long time.