Insurance

[Howard Prout]

I have never been happy with the insurance policies available to me for classic cars. There seems to be two extremes. At one end there are policies that only allow the vehicles to be driven to club events, etc. - i.e. no driving to the corner store to pick up a loaf a bread, cheap but not flexible. At the other end are standard policies - unrestricted but expensive. But you can remove road coverage when not required. I became disenchanted with the insurance company I have been with for years (Allstate) for a number of reasons so I started looking for alternatives. I belong to an association of retirees that amongst other things offers house and car insurance for members. When I contacted them and asked about insuring our vintage cars, they said they could but there were probably better options. It was suggested that I should consider insuring the daily drivers with them and insure the vintage cars with a specialized broker - I was given the name of such a broker. This broker offers policies for classic and vintage vehicles. The policies allow up to 5000km (3000 miles) a year of casual driving - not to work but tooling around, etc. You have to have your vehicles appraised and it is a non-seasonal policy - no reduction of coverage when the vehicles are off the road for an extended period of time like the winter, etc. I was quoted a premium of $178 per year for a vehicle valued at $20,000. The policy includes $500 deductible collision, $100 deductible comprehensive and $7,500 coverage for spare parts! The premium for the Allstate policy with similar coverage, netted for returned credits for seasonal road coverage, is about $350 per year. Allstate doesn't cover parts under automobile policies but may do under property policies. The premium for $35K coverage is $265 per year and for $50K is $352 per year. My point is that is worthwhile doing some digging to see what options may be available to you.

[YellowRose]

Insurance

Hi Howard,

I know what you mean about insuring these old Birds. This subject has been talked about before. I did a search on insurance, and insurance policies, and came up with some entries. I tried searching for Thunderbird insurance, I think it was, and came up with a lot of other different things. I know that some of the guys have insurance coverage that does not restrict their travels to just shows or events and they were pleased with them. Did you check on any of the information Alexander put on the Home page? Like you, I am not happy with what it is costing me a year for coverage on Rose and I also use Allstate. I just have not taken the time to sit down and talk with a number of these insurance companies that specialize in covering classic cars, and I should.

[Guest]

Having never used or made a claim to my insurance company, I can say that I am happy with the JC Taylor Insurance Company that has insured my 58 Bird for the past 16 years. Granted that the coverage I have elected is most likely less then what it should be with respect to liability, uninsured and PIP, but the coverage meets state required minimums. My policy insures the 58 for $12,000 and a ’74 Yamaha 500 for a $1000 value. My annual premium is $140. This spring, when I get the 48 Dodge Panel operational, I will add that vehicle to the policy as well.

Howard had addressed use, value and mileage driven as points to consider in a policy. I found JC Taylor’s webpage FAQ link at http://www.jctaylor.com/antique/antique_FAQ.html which answers these questions;

Q.How can I use my vehicle?A.The vehicle should be used primarily for hobby events such as shows, club functions, tours, and parades. An occasional nice day drive is also acceptable. The vehicle should not be used for errands or a commute to school or work.

Q.Lately I've heard a lot about the need for "Agreed Value" coverage on collectible vehicles. What does "agreed value" mean, and does the JC Taylor policy include this coverage?A."Agreed Value" coverage is included in your JC Taylor policy, and has been for almost fifty years. Prior to issuing your policy, we will come to an agreement with you on the value of your vehicle, based on the market and condition of the vehicle in question. In the event there's a covered total loss to your vehicle, the "agreed value" is the amount you would receive.

Q. Does JC Taylor have a mileage limitation on the policy?A. There in NO mileage limitation in the JC Taylor policy (i.e. contract). We use a limit of 2500 miles per vehicle per year for underwriting (i.e reviewing) our potential business. We believe this limit is reasonable; however, customers who exceed this limit will never be denied coverage as a result.

So I drive my vehicle for occasional recreational outings, drive her to picnics and family outings, parades and maintenance related test drives with no concern. I told JCTaylor what I wanted the values to be and had no questions asked. Apparently if a vehicle is to be insured for $30K or more, then an appraisal is required. I drive my 58 about 500 miles a year, so no concern on mileage. My motorcycle mileage is also low, but never really worry about it.

Obviously I insure my vehicles to comply with State law requirements. That is of course my top priority for having insurance. However in doing so it’s nice to know that my vehicles are insured for loss and am comforted by low premiums and the ability to use the vehicles in the manner which I desire.

[Howard Prout]

The vehicle should not be used for errands or a commute to school or work.

This is the kicker for me. I want to be able to drive ""Old Betsy" wherever I want - I'm retired so going to work or school is not an issue. I drive her to the golf course about 100 times a year (12 miles each way), but even so my annual mileage is less than 3,000 miles. The policy I found matches my needs quite well. Jed is happy with his policy. Great! Each of us has different needs. My point is to shop around to find an insurance policy that meets your needs - they are there if you look hard enough.

[Guest]

<<Q.How can I use my vehicle?A.The vehicle should be used primarily for hobby events such as shows, club functions, tours, and parades. An occasional nice day drive is also acceptable. The vehicle should not be used for errands or a commute to school or work.>>

Howard, I guess it's how one may define hobby events, club functions and nice day drives. I personally can't think of a better hobby then golf and taking a nice day drive to the golf club event. I think there's much gray area open to interpretation and the only time such would come into question would be that one time a claim would be made.

In the 15 years I have had my JC Taylor policy, I have never made a claim, nor have they ever asked anything specific to mileage, events or driving habits. As I had previously stated, my priorities for insurance may be different then yours or other bird owners. My first priority is to have valid insurance in order to comply with MN State insurance laws.

Best success to you in your search for satisfactory coverage.

[JohnG]

Let me pose a hypothetical question for you guys to ponder (insurance is largely about dealing with hypotheticals):

someone runs into the front of your TBird, low speed, but wrecks your newly rechromed bumper which cost you about $1000 not including labor and shipping.

Is your insurance company going to cover getting you another bumper and having it replated?

Can you get back to exactly where you were, in terms of condition, prior to getting hit?

[Guest]

I pay $143 a year for $20,000 coverage with $500 ded(I believe). I can 5,000 miles a year, although I realistically barely hit 500 a year. They have no rescrictions, and they even went as far as saying that if I drove it to work and it damaged that they would most likely cover it, but if they found out that I drove it to work everyday, they would drop me.

I like this B/C they recognize the true hobbiest or enthusiest respects the car and its historic value, so they give a little more freedom and trust.

Just my 2 cents

[Dan Leavens]

To chime in on the insurance thread, I think all of you have very valid points. I was in the same boat not happy with the premiums until about 5 years ago, when I approached an insurance broker. Of course it helps, when he also has the collector cars, daily driver, house etc. to reduce the premiums.I have them appraised every two (2) years, when additional work is done to them and have a full set of current digital pictures for each one. I too put less than 2000 miles per year per vehicle and also want to take them golfing, to see the grandkids or just for a cruise. I tailored my policies to include these issues and and have them insured to the " full replacement value " The key is to make sure you have a somewhat current appraisal by an accredited appraiser, on file with your insurance provider.As mentioned will they replace a $1000.00 front bumper if required?

[Guest]

J C Taylor. The next car I get is Free. $240 a year

[Guest]

Let me pose a hypothetical question for you guys to ponder (insurance is largely about dealing with hypotheticals):

someone runs into the front of your TBird, low speed, but wrecks your newly rechromed bumper which cost you about $1000 not including labor and shipping.

Is your insurance company going to cover getting you another bumper and having it replated?

Can you get back to exactly where you were, in terms of condition, prior to getting hit?

John, in answer to your bumper question I believe the JC Taylor policy would cover your expense completely up to the total insured value, less your deductible.

The JC Taylor policy under Part D-LOSS OR DAMAGE TO COVERED AUTO and under Additional Conditions; A. Limit of Liability it does state as follows;

We will pay the amount shown for each scheduled auto which is agreed to be the value of “your covered auto” in case of total loss. We will pay for all other losses, the lesser of:

• the actual cash value of the property at the time of loss or damage; or
• the amount necessary to repair or replace the property; or
• the amount of insurance

[dgs]

I use JC Taylor and emailed them a couple of years ago about usage and got this response:

In a sense, you can drive the vehicle however you wish; the policy coverage will apply. However, the T-Bird should be used primarily for hobby purposes. There is nothing wrong with a nice day drive. As for taking the car out to dinner or to work, that should be done rarely. The problem in these cases is not the mileage, but the fact that the vehicle will sit in a parking lot once it reaches the destination. If you took your vehicle to work and it was damaged, the policy would pay. However, if in the process of adjusting the claim we discovered you were driving the vehicle to work once a week, we would probably cancel your policy. "Daily life" usage is just not what the policy is designed for. With such low premiums, we have to regulate the usage to mitigate the risk. Just be smart about your usage and respect the nature of our product. Other than that, enjoy the T-Bird! Please let me know if you have any other questions. Thanks.

He did say that his remarks do not supersede the actual policy language, but I took this as drive it how you want, but don't use it in the place of your regular car for commuting, shopping, etc.

[SandyBoy]

GRUNDY CLASSIC CAR INSURANCE IS WHAT YOU WANT !

Horsham, Pa. I have been with them for 15 years, and they are rated #1 in the field.

Grundy.com (I think) Check it out.

[bird 60]

Classic Car Insurance

Hi Guys,

I go through Shannans Classic Car Insurance of Australia.

My Premium is $298, per year. My Bird is Insured for $70,000.

I have full comprehensive insurance.

I can drive my BIRD when-ever I want where-ever I want but for only 90 Days on a Log Book System that has to be filled Daily only when it's driven.

The most that I have used my Log Book in a full year is around 40-60 Days covering about 2,000 miles, but there's no restriction as to what Miles I do.

One might think 90 Days isn't a lot, but when you consider 52 Weeks to the Year x by 2, Saturday & Sunday = 104 Weekend Days.

It works out only 14 weekend Days that I can't drive, but then again It's not driven in Winter or when it's Wet.

The reason why I mention Weekends is because that's when the majority of the Classics are used, nothing to stop me from using it during the week or after work if I wanted to.

Chris....From the Land of OZ.