Insurance 101

[Patrick]

It seems that from time to time questions come up regarding Collector Car Insurance. Here is brief descripton of the 3 most common types of coverage for your vehicle:

1)Actual Cash Value-ACV- pays the replacement cost LESS Depreciation. This type of coverage is used for newer vehicles.

2)STATED AMOUNT--You and the insurance company agree on an amount to insure the vehicle. Read Carefully: Stated Amount pays the LESSOR of the 1) the Stated Amount 2)the cost to repair or 3) replace with ACV. It does not guarantee maximum payout. Where this really gets dangerous is if your vehicle is stolen or totaled.

3)AGREED AMOUNT-- Collector Cars should have this type of coverage. Agreed Amount guarantees the amount that the insurance company will payout should you vehicle get stolen or totaled.

Last but not least READ YOUR POLICY!! Dont be afraid to ask your agent questions. Don't wait until a claim to find out your not covered.

[Dayton]

Not only "newer vehicles" but most older cars also fall under CSV.
For the record, State Farm does not offer "Agreed Value" policies. Their policy is "Stated Value". I'm suprised how many of the State Farm agents don't know the diff.

[Motown 454]

Hi I have a question. I am having my car done with all new sheet metal In South Carolina and I live in Ma. When I pick up the car I would like to have insurance on it incase of an accident in transit.
Do collector car insurance companies in sure cars in the project stage . I will already have alot of cash invested and can't afford to replace it if accident happens. Thank you for your time Wayne

[Morgan]

If you live in MA I can help. I represent Grundy so if you meet there requirements I can insure a car that is not yet complete. Check out my website for a quote: www.haydenwood.com (http://www.haydenwood.com) and shoot me an email when you are ready.

[vintageracer]

I ALWAYS carry comprehensive and collision coverage on any non running or project vehicle I have. This is ESPECIALLY true when it is in someone's shop for repair/work. Virutally ALL shops exempt themselves on their invoice from ANY responsibility of care of your car while in their posession doing work. If their shop burns, it's still your problem.

Comprehensive insurance (fire, theft, act of god) and collision (it falls off your trailer when hauling it home) are cheap insurance. Even IF a collector car carrier will not provide coverage because of the condition of your car, buy whatever coverage you can from your regular insurer. You can always fight with them about value if there is a loss.

It's better than trying to cover the total loss out of your own pocket!!!!

[BRIAN]

Actually when your car is in the hands of a repair shop or garage it is covered by "THEIR" insurance. That is an exclusion in just about every major Insurance Co's policy.

Some Co's depending on the damages and how they occured may extend a courtesy and pay you if they can subrogate against the Garage's carrier for the money back. They will charge you your deductible and if they are sucessful you will get it back. But I will tell you not to count on coverage as it would be a case by case basis and usually not in your favor.

I have never seen a work order that states that??? They may say they have limited liability especially in regards to personal object left in a car. That is also not covered by your Insurance but by your Homeowners or Apartment Ins.

State Farm has no business selling classic car insurance as they have no training for their staff in regards to classic cars. The claims are handled just as if it was a regular vehicle. You better have had given your agent pics and a long list of receipts and be ready for a battle with the half witt on the otherf end of the phone. Call any claims office and ask them a classic car question and I gaurantee you will cancel your policy that day.

[vintageracer]

Virtually EVERY repair shop I go into has a sign OR on their invoice stating they are not responsible for your car or accidents. "Their" insurance coverage (garage keepers liability) is just that, liability insurance. They "may" have additional insurance coverage that may extend to a customer's vehicle but do not count on it. It is hard to extend coverage and insure any item to which you do not have legal ownership. Besides most repair/restoration shops are "mom & pop" operations that are usually not very sophisticated in their main line of business, repair/restoration. Given that fact, why would you think they would have a clue as to having proper insurance coverage in place.

As cheap as insurance coverage really is it is in your best interest to properly insure you own asset, your car!

[ProTouring442]

If your car is damaged at a shop, and the shop did not in some way cause the damage to happen, your insurance is responsible.

Shiny Side Up!
Bill

[BRIAN]

Guys I worked for a major Insurance carrier for 15years.


They can post whatever they want you Insurance Co does not cover damages that occur while your car is in the posession of a repair shop or parking garage. No matter how large or small it is. Like I explained, depending on the situation they may extend coverage if they have a way to subrogate for their money back. The shop can limit their liability for personal items in the vehicle which also would not be covered by your auto insurance. Them having "Liability" insurance does not mean they are not responsible for collision or theft damages that occur to your car.

If you are signing off on some special waver which I have never heard of someone doing, then that once again would be a decision to be handle by you claim rep which would most likely be against you.


Check your policy and you will see that and a few other exclusions. I am not guessing, I was the one settling your claim and know this as fact.

[Patrick]

Brian is correct.

I insure shops for a living. You will find that shops which do carry insurance will have Garage Keepers. It will be in the form of Legal Liability or Direct Primary. To keep it simple, as long as a shop is in the Care, Custody and Control of your car they are responsible. Now, if the shop has done everything to protect your vehicle that is 'reasonable and prudent', and your vehicle gets damaged--then the Garage Keepers Legal Liability will NOT respond. The shop has to be negligent. There have been cases where a shop is test driving a vehicle and while sitting a light they are rear-ended by an uninsured motorist. You would think the shop's policy would respond, but again they were not negligent so there is no coverage.

ALSO---If you have a car and it is in the process of being restored-- you might want to find our where they keep your vehicle. If the shop keeps your vehicle outside, but in a secured lot with lighting, etc., etc...then chances are if your vehicle is stolen or vandilized, the shop's insurance will not respond if they have Garage Keepers Legal Liability. Remember the shop must be negligent.

Direct Primary responds wether the shop is negligent or not.

Sorry-- I know it is boring...but it is important.

Oh and by the way, if you OWN the shop-- your project vehicles are not covered UNLESS you actually pull a ticket and intend on paying full retail for the repairs--even then it is very dicey.

[Morgan]

I second both Patrick and Brian. I own an insurance agency that insures shops. Garage Keepers Legal Liability is just that: Legal Liability by the shop providing physical damage to your vehicle while it is in their possion (keeping). A very different coverage than General Liability which a shop owner should also have. There are smaller shops out there than may only have General Liability and therefore may create some kind of waiver for you to sign. Be careful with those types of shops.

[Dayton]

Hi Do collector car insurance companies insure cars in the project stage .

Yes
My 69 Camaro is an ongoing project. I sent Hagerty pics and told them I wanted $50k agreed value.

[Chad-1stGen]

Problem is that I like driving my car as much as possible. I drive it to work and run errands with it (depending on the errand) and no agreed upon value insurance i've heard of will cover it if I'm honest with my intended useage.

I didn't buy this car and pour a ton of money and time into it to only drive it 2K miles a year. I've already driven it 2K miles since January.

[DusterRT]

Is there a collector insurance for cars that get driven a lot? I've got state farm for my DD..but what about coverage for guys with nice weather DD's? Do you just have to pick a standard company and hope nothing happens or pick a collector company and hope if something happens while not coming/going from a show you can piece together a good story? I'm under 25 for a little more than a year, clean record other than a couple tickets in my former state of Illinois..

[CraigMBA]

Chad-

Disconnect the speedo. You've got a tach, they use it in NASCAR for a speedo....