GMJim

Economical Mutual.
This may just be an Ontario issue but may be country wide with this company? Just got a letter from my car insurance company (I've been a client for over 40 years accident free) that as of Dec. 31/18 they will no longer insure my 2011 ZR1 (rule#19). I remember in the late 60's and early 70's the muscle cars were subjected to insurance companies lack of brains and the auto companies advertised their horsepower lower to help sales. So now I have a 49 year accident free record (40 of those years with this company) I'm 65 years old, and they dump me! Damned insurance companies!

Letter from my broker. "Please be advised that we have been notified by Economical Mutual that they will delete your 2011 Corvette ZR1 effective Dec. 31/2018 due to the vehicle being capable of producing more than 580 horsepower. This is their private passenger rule #19."

I sold my 2010 Grandsport and bought the 2011 ZR1 in November of 2013 so my ZR1 hasn't been an issue for the last 5 years, why now?

Check your mail box.

VETFEVER

Wow

raztek

Actuarial scientists being actuarial. I am sure they will offer a "facility" insurance product for you though. Sucks big time man!

New world of data analytics. Wait till they figure out algorithms that determine people's level of price tolerance when shopping (online) Those that are willing to pay will be presented a higher price knowing that those that are price insensitive will pay while those who are price sensitive will be presented with a lower price. It's coming....

GMJim

There are a LOT of 580+ horsepower cars out there. Someone will take advantage of this gravy market, We'll see.

TGstring

I'm likely completely wrong here but I thought there was a 60 day window where they were supposed to send you your renewal and give you as much time before they changed the policy coverage like that too...

if you just got it and the change is to take effect in 6 weeks, that leads me to believe they've missed the mark by 2 weeks...which means you might still have coverage if you call them out on it.

***i'm likely wrong here but for some reason there's something that's nagging me in the back of my mind when it comes to giving you ample notice**

anyway, food for thought.

what they're doing is brutal. When the car is on the truck on the way from KY to your local dealer, they're happy to accept the premiums... but when it comes time to drive it off the trailer, they're not interested anymore.

corrado

That is REDICULOUS!! Sounds like it's time for new Insurance company for you!
Obviously your loyalty and many years of business with them means Nothing to them so don't give them any more business.

Quick story: Years ago I noticed my insurarance (State Farm) just kept going up, despite a perfect record, no tickets, etc. I was tired of hearing all my friends tell me how much cheaper their insurance was so I called my insurance rep and was honest. I asked why it was going up and stated I liked their service, was with them for 20 years and my parents much longer. I asked them for a better rate as I didn't want to switch companies but I am not made of money. They said they couldn't do anything. So I switched companies and it was MUCH cheaper.

The very next day, the State Farm Broker himself called me and tried to get me back. I politely explained that I gave them a chance to keep me as a loyal customer but they didn't want to budge.
I have no regrets.

Bottom line, this could actually be a good opportunity for you, despite the pain it will be to switch. Companies have vastly different rates so it pays to shop around. We have to speak with out consumer dollars. I am all for loyalty, but it has to be a 2 way street.

GMJim

You may be correct and I haven't really looked into that but I wouldn't want to do business with them going forward anyway. Dec. 31 is my renewal date so they've given me advance notice.

Yeah I think the loyalty days are over! I'm going to shop around and see what I come up with. I'll post back any info that's relevant. One thing I'd like to know is their rule #19 says they won't cover vehicles with over 580 horsepower whether factory OR modified. If you get insurance with this company and have an accident and they look it over and say it's been modified to over 580 HP you have no coverage, who has to prove otherwise. Probably you!

On another note I called the Insurance Bureau of Canada to ask about the ethics in doing this (above) and asked an unrelated question. Question was "In Ontario the Sikhs have been granted permission to ride their motorcycles without a helmet for religious reasons. Would insurance companies be able to charge higher premiums for accident/injury benefits or do we all have to pay more money in our premiums to cover this?" Answer "The insurance companies CAN NOT ask if a helmet is being worn or not" Sooooo you and I will cover these short falls due to head injuries, hospital cost, rehab, etc, etc.

FireRoc

That really sucks.

A quick story and somewhat related to your situation.

Many many years ago I had an insurance policy with a $50 deductible. This was a pricy policy as the $50 deductible really raised the premium rate. Over the course of a year or so I had five comprehensive claims for vandalism and glass breakage. The total cost of all five claims was about $500 . When it came renewal time the insurance company refused to renew my policy as I had an excessive claims history!!!!! I complained to the Office of the Superintendent of Insurance (not sure I got that right, but its the insurance industry watch dog). I got back a letter that was virtually word for word the same as the letter I got from the insurance company (bought and paid for!!). This was bad enough. Then I found out that because I was denied insurance no other insurance company would touch me and was going to have to go to the facilities market.

In the end, I was able to get insurance through a friend of friend who called in a favour with an insurance broker.

You may want to check this out as you have now, in essence, been denied insurance coverage. Hope this game is played on you.

1BDRSK

I'll clear up a few things. Insurance companies can at anytime file for new rules based on the type of business they want to write. Most have a $ threshold that has been in place for decades, meaning they won't provide insurance on vehicles valued over a certain amount. Years ago is was $100,000, then it slowly moved up. I wouldn't be surprised if its $150,000 and over.

As far as Economical goes, they run Sonnet and since the beginning, Sonnet would not write a vehicle with more than 580 hp, so it looks like Economical is just aligning their rules to match all companies.
As far as notice, it's 30 days prior to the renewal that it legally needs to be in your hands, if they are late then they simply extend the 30 days.

As far as having to worry that you've been declined insurance, it's not the same as being cancelled for claims so this will have zero impact on your ability to obtain insurance elsewhere.

Loyalty is a thing of the past, you can see that with employers as well as insurance. I've seen people switch for $20 a year, only to come back the next year when that company raised their rates. It does pay to shop as the company you are with now may have been 'hot' a few years ago, but maybe they aren't so 'hot' now. That goes for more than price, it goes for their customer service and claims satisfaction.

Brian71

A friend of mine got dropped by his insurance company when he told them he installed a supercharger on his 2010 Camaro SS. Hagerty took him no questions asked. This may work for you depending how much you use your car.

FLEXjs

I had zero issues adding my 2017 Z06 to my policy last week. TD Meloche Monnex. Premium was even cheaper than my DD Charger SRT 392.

dankhts

insurance??

tfi racing

Interesting. Wanna bet that the executive douchebag that signed that policy into effect drives a car with just under 580 hp?

Donuts

Cman01

Are you driving your 17 Z06 as a daily? The premium is probably cheaper on the Z vs. the Charger because it's not a daily.

I drive a POS 2010 Suzuki SX4 as a DD and the premium on that is almost the same as on my Z and GT500, those 2 cars sit in the garage 4-5 days out of the week during the months I have both insured to drive. I have a perfect driving record and the coverages on the Suzuki are less than the 2 cars.

The car you drive the most will usually be the car with the higher premium over cars that sit in the garage safe and sound and driven less.

On a different note, I had looked into Hagerty and other specialty insurance for my 2 summer cars and the premiums they quoted me for each car was usually the same or higher than my current insurance with a lot more restrictions over when and how much I can drive them. For their quoted premiums I did get a guaranteed value for my cars if I end up with a total loss though, but I wasn't too thrilled with the restrictions on the driving. They were asking me questions about where I would go with those cars, how far I would travel with them and the places I go with the cars (specifically car related destinations like for shows and stuff), like WTF I pay you money for insurance in case SOMETHING happens and because I have to have insurance due to laws in our province you get to dictate where and when I drive???? F that!!!!! None of your F-ing business where to and when I drive my cars PERIOD!!!!!

Tony

cdngolfer

Try Lant Insurance brokers in Stouffville.

They said that their insurer would cover cars modified up to 100 HP over stock and lowered 1 inch for a good price.

Don't tell them if you track it though; they will run for the hills!

GMJim

I have a 69 Camaro and a 68 Chevy 1/2 ton with Lant/Haggerty. Getting insurance for a ZR1 isn't difficult. Getting a good package deal for all my cars except the cars I have with Lant is the problem. I'm sure I can find something.

HooosierDaddy

PITA , yea
End of the world, no
Just get a new policy before the current policy actually cancels (like right away)... This way it shows as a change of insurer with no lapse in coverage or a denial/cancelation in your history. All the new company needs to know is you are shopping for better rates and leave it at that!

I'd look at one of the speciality companies for ease, you can continue to shop after signing with them if you choose but it's important to maintain coverage.

dmaxx3500

sad,you canadains,can only drive your car 1-2 months a year [snow-ice] and you have to deal with this

Red Devil

​​​​​​Hi Jim, I have the same car and insurance company and have already received my renewal for next year without any issues, that being said I will be making the switch to Lant and going with a 19A which is guaranteed replacement value for just under $200 and I can take the insurance off in the winter unlike classic car insurance.