Insurance quandry
Thread Starter
Racer
Joined: Sep 2011
Posts: 408
Likes: 1
From: Ormond Beach Florida
Insurance quandry
I am curious as to what insurance company most of you use to insure your classics and to what coverage extent. I am most interested in "replacement cost" numbers and how value is determined and its' relationship to policy premiums. Would also like to know if any have used to policy for pay outs because of accidents or theft and if you were satisfied. I have a number in my head for the "cost" of restoration (backed by receipts) for an '82, but am wondering if I can obtain a coverage policy to cover if an accident or thieft occurs. Thank you in advance for any replies.
Drifting
Joined: May 2005
Posts: 1,968
Likes: 44
From: East TN
I am curious as to what insurance company most of you use to insure your classics and to what coverage extent. I am most interested in "replacement cost" numbers and how value is determined and its' relationship to policy premiums. Would also like to know if any have used to policy for pay outs because of accidents or theft and if you were satisfied. I have a number in my head for the "cost" of restoration (backed by receipts) for an '82, but am wondering if I can obtain a coverage policy to cover if an accident or thieft occurs. Thank you in advance for any replies.
Instructor
Joined: Dec 2007
Posts: 184
Likes: 0
From: Crystal Lake IL
I use Hagerty and have an agreed value policy. Basically what this means is that in a total loss, I should get a check in the amount of the agreed value. Fortunately I haven't had to test it, so I can't comment beyond that.
Without an agreed value policy, you're likely looking at somewhere around blue book value in a total loss.
If your car is not a daily driver, you'll find agreed value policies are relatively affordable. Just be careful of the restrictions of the policies...for example, Hagerty requires the car be kept in a locked garage.
Without an agreed value policy, you're likely looking at somewhere around blue book value in a total loss.
If your car is not a daily driver, you'll find agreed value policies are relatively affordable. Just be careful of the restrictions of the policies...for example, Hagerty requires the car be kept in a locked garage.
Race Director
Joined: Sep 1999
Posts: 11,361
Likes: 383
From: Plano TX
If we are talking about collector car insurance they will want an "agreed value" from you.
The policy premium follows the agreed value fairly closely. You have a base premium to cover liability, and then a variable premium for the agreed value.
What should your agreed value be? Well, your restoration cost or how much you paid for the car isn't relevant. The agreed value you should ask for is the amount of money it will take to buy a comparable car at short notice.
Look at for sale ads and find cars that are close to yours. "Short notice" = not much time to haggle/work on the seller, so their asking price would be about what you'd pay for their car.
So for insurance reasons, that's the agreed value you request.
Insurance is all about getting you back to a pre-loss state. If you have a total loss, they will give you enough money to buy a car (in the current market, on short notice) as close as possible to your one.
If your car is close to stock, the online value guides will be a good reference point.
The policy premium follows the agreed value fairly closely. You have a base premium to cover liability, and then a variable premium for the agreed value.
What should your agreed value be? Well, your restoration cost or how much you paid for the car isn't relevant. The agreed value you should ask for is the amount of money it will take to buy a comparable car at short notice.
Look at for sale ads and find cars that are close to yours. "Short notice" = not much time to haggle/work on the seller, so their asking price would be about what you'd pay for their car.
So for insurance reasons, that's the agreed value you request.
Insurance is all about getting you back to a pre-loss state. If you have a total loss, they will give you enough money to buy a car (in the current market, on short notice) as close as possible to your one.
If your car is close to stock, the online value guides will be a good reference point.
Melting Slicks
Joined: May 2009
Posts: 3,079
Likes: 315
2024 C3 of the Year Finalist - Unmodified
I have a $60K agreed value collector car policy. There is a 3000 mile annual limit and locked garage condition. I also cannot leave the car unattended while pleasure driving...such as in a parking lot. Then again, the premium is less than $400 per year.
Melting Slicks
Joined: Jun 2005
Posts: 2,239
Likes: 74
From: Palatine, Peoples Republic of Illinois
St. Jude Donor '09-'10-'11-12-'13-'14-'15-'16-'17-‘18
NCM Sinkhole Donor
I have a $30K agreed value through Adam Boca at NCM with 6000 miles for $313/yr. I live in a suburb of Chicago so my rates are affected by my location.
Racer
Joined: Oct 2005
Posts: 435
Likes: 0
From: Katy The Republic of Texas
anyone done comparisons?
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Racer
Joined: Oct 2008
Posts: 475
Likes: 3
From: Windham NH
I used my regular insurance company for mine. I have no limits on when and where i drive. They use book value for a complete lose. I pay just over $300 for full coverage. I worried too much about using one of the collector insurance companies. They seemed to want to limit my use and i like the freedom to drive..
Melting Slicks
Joined: Aug 2012
Posts: 3,487
Likes: 83
From: Titusville Florida
I used my regular insurance company for mine. I have no limits on when and where i drive. They use book value for a complete lose. I pay just over $300 for full coverage. I worried too much about using one of the collector insurance companies. They seemed to want to limit my use and i like the freedom to drive..
Pro
Joined: Mar 2002
Posts: 572
Likes: 0
From: grand junction co
I have all three of my cars insured with Adam at the Corvette Museum and I could not find anyone that could come close to the rate Adam quoted me. Agreed upon value, great service and all for under 600.00 per year.
Team Owner
Joined: Jan 2006
Posts: 37,637
Likes: 3,118
From: Crossville TN
If the actual worth of your car is much greater than the Black Book value of it (average wholesale for that model year car), you definitely want to insure it with a company that provides "Agreed Value" coverage. Many 'regular' insurance companies have weasel-words that lead you to believe they have agreed value coverage, without using those words. But, if you suffer a total loss, you likely won't get full coverage to that value with those companies.
Hagerty and other "collector car" insurers provide "Agreed Value" coverage at reasonable cost--providing you only use the car for purposes listed in the policy, for the miles/year covered, and that you store it inside (garage, closed building, etc) when not being used.
You can likely set an Agreed Value that is significantly higher than your car's actual worth; but you will be paying a proportionally higher premium in order to get that level of coverage. My suggestion is to keep the agreed value to no more than 20% higher than what it would take to completely replace that vehicle to a "same condition" replacement. Otherwise, you are just throwing money away at your insurance premiums.
Hagerty and other "collector car" insurers provide "Agreed Value" coverage at reasonable cost--providing you only use the car for purposes listed in the policy, for the miles/year covered, and that you store it inside (garage, closed building, etc) when not being used.
You can likely set an Agreed Value that is significantly higher than your car's actual worth; but you will be paying a proportionally higher premium in order to get that level of coverage. My suggestion is to keep the agreed value to no more than 20% higher than what it would take to completely replace that vehicle to a "same condition" replacement. Otherwise, you are just throwing money away at your insurance premiums.
Melting Slicks
Joined: Jun 2005
Posts: 2,239
Likes: 74
From: Palatine, Peoples Republic of Illinois
St. Jude Donor '09-'10-'11-12-'13-'14-'15-'16-'17-‘18
NCM Sinkhole Donor
Stated value is much different from agreed value. Stated value is simply what you think it's worth. The insurance company probably won't agree.
Drifting
Joined: Apr 2007
Posts: 1,970
Likes: 45
From: Cameron Park CA
Be careful with "regular" insurance for an older Corvette, or any collector car. My friend rear ended a car with his '68 Rivera - totally his fault. Insured by Hagerty. They paid to completely fix his car, no questions asked, and took care of the other car. The Buick needed some hard to find parts, and Hagerty helped him locate the parts. NO DEDUCTIBLE.
I have Hagerty, no real mileage limits. Require a locked garage. Must have proof of a registered/insured vehicle for every driver in household - not counting the one they insure.
Pete
Melting Slicks
Joined: Aug 2012
Posts: 3,487
Likes: 83
From: Titusville Florida
Be careful with "regular" insurance for an older Corvette, or any collector car. My friend rear ended a car with his '68 Rivera - totally his fault. Insured by Hagerty. They paid to completely fix his car, no questions asked, and took care of the other car. The Buick needed some hard to find parts, and Hagerty helped him locate the parts. NO DEDUCTIBLE.
I have Hagerty, no real mileage limits. Require a locked garage. Must have proof of a registered/insured vehicle for every driver in household - not counting the one they insure.
Pete
Racer
Joined: Jul 2013
Posts: 385
Likes: 3
From: Leesburg VA
Hagerty refused to cover me after many questions about expected use. I had just bought a 1974 coupe and told them I planned to drive it to work on sunny Fridays and on the weekends for pleasure with my wife. I told them I did not plan on attending car shows, etc. I stated that I would probably drive about 100 miles a week max. They refused to cover me because they said I was going to drive it too much. Yes, I do have a locked garage and am 55 years old.
I bought the car to drive it, not so it can sit in my garage. Hagerty can take a flying leap as far as I'm concerned. I insured with my regular carrier.
John
I bought the car to drive it, not so it can sit in my garage. Hagerty can take a flying leap as far as I'm concerned. I insured with my regular carrier.
John
Melting Slicks
Joined: Aug 2012
Posts: 3,487
Likes: 83
From: Titusville Florida
Hagerty refused to cover me after many questions about expected use. I had just bought a 1974 coupe and told them I planned to drive it to work on sunny Fridays and on the weekends for pleasure with my wife. I told them I did not plan on attending car shows, etc. I stated that I would probably drive about 100 miles a week max. They refused to cover me because they said I was going to drive it too much. Yes, I do have a locked garage and am 55 years old.
I bought the car to drive it, not so it can sit in my garage. Hagerty can take a flying leap as far as I'm concerned. I insured with my regular carrier.
John
I bought the car to drive it, not so it can sit in my garage. Hagerty can take a flying leap as far as I'm concerned. I insured with my regular carrier.
John
), what the hell good are our cars if we can't drive them when we want. While I do enjoy working on my car, making her better/newer, I enjoy driving her more and like to drive to work, to the store or just for a joy ride. With these "collector car" insurance company they pretty much want you to leave it in your locked garage (and I too have a locked garage), and polish it, what the hell good is that - for ME, it serves no purpose!
Instructor
Joined: Jun 2008
Posts: 233
Likes: 9
From: Marietta Ga
I'm using Grundy which is actually the Phildelphia Insurance Company. $29,000 agreed value for about $260yr. in the metro Atlanta area. Locked garage, no mileage limits. Problem with some of this is that unless you need them, you're not really sure how good they will be unless a claim is made. I have no idea how that will go.