Insurance on car while its being restored

[Munster]

Hagarty insurance.. Called them and they asked what amount I wanted to insure it for, they wrote me a Binder and i sent pics and copies of my current insurance. The policy is for building and not driving it. And for a $30,000 policy it is only $124 a year. No hassels. easy.

[Mathius]

I agree that you should call your agent and ask. I have nationwide, and they have a policy program where you can put the car on 'storage' and that covers it against theft or damage.

But understand that on an older vehicle, insurance and value are very particularly. If you don't provide pictures of the vehicle, odometer numbers, modifications, etc. then they don't know what you've done to the vehicle and you can bet you won't be compensated for that type of thing if something happens. Most insurance companies will have some type of program for this.

I know for a fact, that my insurance company will give me liability on my '76 malibu with no questions asked. They will allow me to put it on storage and cover it to a certain dollar amount. But if I want to get full coverage on it, then I have to take it to them and allow it to be appraised, and have pictures taken and a list of what I've done to it.

These things might be a hassle, might even cost money, but when my car is done, I will want to make sure it is taken care of.

Mathius

[wmhjr]

I agree that you should call your agent and ask. I have nationwide, and they have a policy program where you can put the car on 'storage' and that covers it against theft or damage.

But understand that on an older vehicle, insurance and value are very particularly. If you don't provide pictures of the vehicle, odometer numbers, modifications, etc. then they don't know what you've done to the vehicle and you can bet you won't be compensated for that type of thing if something happens. Most insurance companies will have some type of program for this.

I know for a fact, that my insurance company will give me liability on my '76 malibu with no questions asked. They will allow me to put it on storage and cover it to a certain dollar amount. But if I want to get full coverage on it, then I have to take it to them and allow it to be appraised, and have pictures taken and a list of what I've done to it.

These things might be a hassle, might even cost money, but when my car is done, I will want to make sure it is taken care of.

Mathius

Just a further warning - especially if you're dumping lots of time, effort and money in a project....

Unless it is an "Agreed Value" policy, it does not matter if you send photos, receipts, renderings, affadavits, or sworn statements to your insurance company. It also does not matter if they send somebody out to appraise it. In the event of an actual loss, they can/will determine how much they will actually pay out based on their process. You might get lucky and get compensated in the right amount. You might not. It is EXTREMELY rare to find a normal insurance company such as state farm, nationwide, geico, etc who will provide an agreed value policy.

On a project like mine, or for example one like Munster, I would never consider anything other than a specialty company such as Hagerty or Grundy. The few dollars you might save up front will look very stupid if the worst happens, and your car is stolen. That's the real test. When the car is stolen and it can't even be appraised. With specialty companies that focus on classics and customs like Hagerty or Grundy, it's no fuss. If you've got a "regular" company, I wouldn't want to be in your shoes.

[nitrovette]

Ive been using american collector insurance for years,i asked them if i could insure the 70 chevelle while i had it apart they said yes send pics of the car and value of all the parts that are with it.I havent gotten any farther on car so i havent done it but in a few months i will.

[Mathius]

Just a further warning - especially if you're dumping lots of time, effort and money in a project....

Unless it is an "Agreed Value" policy, it does not matter if you send photos, receipts, renderings, affadavits, or sworn statements to your insurance company. It also does not matter if they send somebody out to appraise it. In the event of an actual loss, they can/will determine how much they will actually pay out based on their process. You might get lucky and get compensated in the right amount. You might not. It is EXTREMELY rare to find a normal insurance company such as state farm, nationwide, geico, etc who will provide an agreed value policy.

On a project like mine, or for example one like Munster, I would never consider anything other than a specialty company such as Hagerty or Grundy. The few dollars you might save up front will look very stupid if the worst happens, and your car is stolen. That's the real test. When the car is stolen and it can't even be appraised. With specialty companies that focus on classics and customs like Hagerty or Grundy, it's no fuss. If you've got a "regular" company, I wouldn't want to be in your shoes.

What you're saying is true, and makes sense, but I would be willing to bet even the "normal" insurance companies have policies to suite what you're asking about. Insurance has become one of the most competitive businesses in this economic climate.

Mathius

[justasquid]

Im a chucklehead sometimes. I have a good friend that works for Hagerty insurance. I emailed him and he said he would have one of the sales reps call me.. I'll let you know how it plays out. He did say it was pretty simple, just a few photos and then an agreed price..

I called my insurance complany, which is state farm. I was told in order to get insurance on it, I would have to have it appraised then they would go from there. My local office really wasn't much help as they also said after the appraisal, they still were not sure what they could insure.

[wmhjr]

What you're saying is true, and makes sense, but I would be willing to bet even the "normal" insurance companies have policies to suite what you're asking about. Insurance has become one of the most competitive businesses in this economic climate.

Mathius

They do not as a rule have them. If you make that bet, you'll lose. Believe me if you want or check for yourself. Just make sure that you're very very specific and question everything they tell you.

You're right that it's become very competitive. As a result, the majority of the insurance folks you'll talk to at the major players will be largely uninformed and uneducated as to the differences in these policies. As an example, it took about 3 hours to finally get Geico to admit that they do not offer an "Agreed Value" policy. They for a long time kept insisting that a "Stated Value" policy was the same thing. It took a couple levels of escalation to get them honest. Problem was, the first couple people were clueless. You need to specifically ask them for the claims process in the event of theft.

I'm not sure why the big carriers don't get involved in this stuff. It seems as if it's a no-brainer. Most of the cars insured under these types of policies are incredibly well maintained and taken care of, and that the owners are very very careful with the vehicles. While values may be high, risk is lower. But, they don't. There may be a few exceptions, but I spent a good deal of time both for my Pontiac project and for the custom bike I built last year.