News for August 2009

Where do club members get discounts for classic car insurance?

If you’re interested in classic, vintage, or antique cars, you might also be interested in participating in a club. After all, it’s only natural to want to get together with others who can equally appreciate the beauty, quality, and value of your collector vehicle of choice, whether it’s a high-powered Lotus Elan, or a nostalgic Mini.

Membership in a classic vehicle collectors’ or enthusiasts’ club can have a number of advantages. Some specialty classic car insurance providers, for example, have discounts and other benefits on offer to members of certain clubs. These types of providers also offer a vastly superior type of insurance policy compared to conventional insurance companies. With a policy intended specifically for classic vehicles, your vehicle, whether it’s a classic auto from the past, a limited-production or otherwise rare or exotic auto from up to the present day, a vintage tractor, commercial or military vehicle, or even a custom street rod, hot rod, kit car or high-quality replica, can be covered in a greater variety of situations (shows, shipping, restoration, and more), and, what’s more, your vehicle will be covered at a substantially lower premium, and a proper, accurate valuation.

Among these companies is Leland-West Insurance Brokers, who offer special plans for Porsche owners though the Porsche Club of America and plans for Mercedes-Benz 300 SL Coupe and Roadster owners who belong to the Gull Wing Group International. Also, Hagerty Insurance, which operates in the US, Canada and the UK, offers a special liability program for clubs, under which all members of your club will be covered. Some specialty classic car insurance providers may also offer discounts to members of AAA and other such organizations.

A number of UK-based classic car insurance firms also offer club discounts. Members of the Jaguar Enthusiasts’ Club can get a discount through Footman James & Co Ltd. (Footman James also offers discounts for members of other enthusiasts’ clubs.) The Alfa Romeo Owners Club UK offers its own special insurance policy through Chris Knott Insurance. Adrian Flux offers a club members’ discount which can go as high as 15% annually. Lancaster and its affiliates also offer a variety of club discounts.

The best way to find out if your club and vehicle are eligible for specific discounts is to take a look at the websites of specialty classic vehicle insurance providers in your area. While you’re there, you can get a quote, so you can see just how much more affordable specialty insurance is compared to a standard insurance policy, and how much greater and more appropriate the coverage on offer is. Even if you’re not in a club, the savings with a classic auto specialist will be great enough to significantly outweigh any possible discount that a conventional provider can offer anyway.

Edited: August 7th, 2009

Where can high risk people get classic car insurance?

From an auto insurance provider’s perspective, there are a number of factors which determine whether or not you or your vehicle could be considered “high risk.” These factors pertain both to the vehicle itself, and the registered drivers of said vehicle.

As far as the driver goes, there are several common considerations. The first is age. Young drivers and senior citizens are generally considered to be a higher risk – younger drivers because of a lack of experience, and seniors because of health concerns. (However, there are insurers who specialize in auto insurance premiums tailored to drivers 50 and up.) Another factor that insurers take into consideration is your driving record. If you’ve had an accident in the past, depending on the jurisdiction in which you’re registered, you can be penalized. If you’ve had a recent, serious accident, you might have trouble getting any kind of coverage at a reasonable rate. Basically, the longer you’ve gone without an accident, the better, when it comes to your potential insurance premium. Other personal factors that may be taken into consideration include disability and location.

For the vehicle itself, there are also a few basic factors that will go a long way toward determining what sort of coverage you are likely to get. If the vehicle is a common target for theft, that is considered to add a high degree of risk to the vehicle. For classic cars, the most common theft targets include: Corvettes, particularly those from the “golden days” of 1966 to 1982; ‘60s-era Mustangs; ‘60s Impalas; Camaros from 1968-69; vintage Harley-Davidson motorcycles; late ‘60s-early ‘70s Chevelles; ‘70s Monte Carlos; ’55-65 Cadillac DeVilles; classic Chevy pickups; classic Thunderbirds; ‘70s Continentals; and late ‘70s Mercedes-Benz 450s. In other words, widely-recognized classic American vehicles, as well as select foreign models, are considered by standard insurers to be theft threats. Additionally, if your location sees an above-average number of thefts, this can be held against you.

The safety record of the vehicle is also taken into consideration. This is especially pertinent for classic cars, as they generally don’t have the same sort of safety features as modern vehicles; if there’s an accident, you’re more likely to be seriously injured if you’re in an older vehicle. Furthermore, the driving habits of people who own certain cars means that they’re considered to be more of a risk. This is thought to apply especially to older vehicles with a lot of horsepower, such as classic muscle cars.

Drivers and vehicles that meet these “risk” criteria are generally subject to higher premiums, or even complete denial of coverage. The only surefire way to find out if you, with your own vehicle and circumstances, will be insured is to get a quote from an insurance provider. If you’re looking for insurance for a classic, vintage or antique vehicle, be sure to get a quote from a specialty classic car insurance provider. These companies will be more sympathetic to your situation; they understand vehicles like muscle cars, and they’ll give you a policy tailored specifically to your classic vehicle, resulting in a much lower premium, even if this is a vehicle considered by standard insurers to be a greater risk.

Edited: August 7th, 2009

How does agreed valuation work for classic car insurance policies?

There are many factors which go into determining what sort of coverage and premiums you get when insuring any type of item. Valuation of the item being insured is one of these critical factors. Generally speaking, especially with conventional forms of insurance, the higher an item’s value is in monetary terms, the higher its attendant premiums will be.

For auto insurance purposes, there are three basic ways of determining the value of a vehicle. The first is known as “actual value.” Actual value uses the “book” value of the vehicle, which, of course, depreciates markedly over time – from the instant it’s purchased, in fact. With an actual value policy, you’re never entirely aware of the level of coverage you’re getting, as that information is essentially only given to you definitively in the event that you experience a total loss. Furthermore, it’s almost certain to be much less than you had anticipated, especially if it’s a classic vehicle; agreed value does not take into account the special attributes of a classic vehicle, only its age and its original price.

The second common method is known as “stated value.” Under the stated value system, you are able to state a value for your vehicle. This value also depreciates, though, and in the even of a total loss, these policies generally pay only “up to” the stated value, meaning that, again, you’re not likely to get anything close to the true value of the vehicle.

The third method, “agreed value,” is a must-have for any classic vehicle insurance policy. With agreed value, you, the owner, determine the value of the vehicle, and it stays at that level in perpetuity – no depreciation. (An appraisal may be requested by the insurance provider if you are looking for coverage for a vehicle worth over $100,000 in some cases.) In fact, in many cases, the value of the vehicle appreciates annually, which is only appropriate; age is actually an asset for classic cars, after all. Therefore, with agreed value, should anything happen, you will receive the true, expected value from your insurer.

Agreed valuation policies for classic, vintage and antique vehicles generally entail some understandable restrictions. With most of these types of policies, mileage is restricted to a certain quantity, although not always – Grundy Worldwide, for example, advertises “no mileage restrictions.” Flexible mileage plans are often available, which allow you to receive a policy and premium attuned to the exact amount of mileage you expect. Most of these policies also stipulate that, when not in use, your classic vehicle is kept in an enclosed garage. You’ll also generally need proof of a regular-use vehicle under a standard auto insurance policy, which is the insurance providers’ way of making sure that your classic vehicle is being treated as such.

Agreed valuation is almost exclusively provided by classic car insurance specialists, so it’s worth considering one of these companies if you’re not already using them. They’ll insure your classic car at a much lower cost, while providing much more appropriate coverage, including a proper system of valuation.

Edited: August 7th, 2009

Do female owners get better classic car insurance premium rates?

For the most part, female drivers get a bit of a break on their insurance premium rates compared to their male counterparts. This is because, statistically speaking, female drivers are less likely to be involved in accidents. Additionally, when they do get into accidents, female drivers’ accidents are usually less serious compared to those experienced by male drivers. Female drivers also drive more slowly, and for less mileage, compared to male drivers.

All of this means that, from an insurance company’s perspective, compared to male drivers, female drivers are likely to incur less damage, fewer liabilities, and therefore have less potential cost to insurers, and less likelihood of a claim. Therefore, competitive insurance companies are able to offer female drivers somewhat lower premiums.

This effect can carry over to insurance for a classic car as well. However, even if you’re a female driver, over the age of 25, with a pristine driving record, living in a jurisdiction with relatively low insurance costs, you might still be paying much more for your insurance than you need to. This is the case if you’ve got your classic car insured under a conventional insurance policy.

Why is this? Well, conventional auto insurance policies have their own conceptions about older vehicles. They’d say that classic, vintage and antique vehicles are worth less, as their value has been depreciating since the time they were manufactured. They think these vehicles are more dangerous, to their driver and others on the road, because of their less efficient braking and safety systems. They’re also more likely to break down. These preconceptions, of course, are the result of the assumption that these vehicles will be on the road just as much as any other.

Specialty classic vehicle insurance, on the other hand, treats your classic car like it really is a classic: it’s worth more as time goes by; it’s on the road less; and it’s being used in different situations, and almost certainly not for things like highway driving and the like.

Therefore, if you’re a female classic car owner, the savings you get in comparison to a male driver on a conventional auto insurance policy are miniscule compared to the money you can save by going with a specialty classic vehicle insurance policy. What’s more, this type of policy will cover your classic vehicle in situations such as shows, shipping, overseas travel, restoration, and more. You might even be covered for damage or theft to your spare parts, accessories and memorabilia.

By getting a quote from a classic vehicle insurance specialist, you’ll see immediately how much less you could be paying. Female, male, old, or young; if you have a classic, vintage or antique automobile, the best way to make sure that your vehicle is covered appropriately and affordably is to go with specialty classic car insurance.

Edited: August 7th, 2009

Can young drivers get classic car insurance?

Auto insurance premiums, especially for older vehicles, can be high for anybody. That being said, young drivers almost always pay significantly higher insurance premiums than more experienced drivers and even older, new drivers. This is because young drivers are statistically more likely to be involved in accidents, and their accidents are more likely to be more serious in nature.

The implications of this are twofold. If you’re a young driver, statistically speaking, you’re more likely to injure yourself while driving. Perhaps more importantly, you’re more likely to be found liable for injuring someone else, which can result in significant liability costs, which in turn make insurance providers a little bit nervous, to say the least. Young drivers are also more likely to have their vehicles stolen or vandalized. These realities are also especially true for young, male drivers. For all of these reasons, young drivers are forced to pay proportionately more expensive premiums.

There is one basic thing young drivers can all do in order to help get themselves more reasonable premiums, and that’s to take an accredited driving instruction course. After that, insurance companies will offer lower premiums, to the point where you’ll end up saving a lot of money in the long run, even taking into account the cost of taking the course in the first place. However, even with lessons factored in, the cost of insurance is still quite a bit greater for young drivers compared to older ones.

If you’re a young driver involved in the classic car hobby, the issue of insurance premiums is especially important. Not only are young drivers likely to be tagged with prohibitively high premiums, but older vehicles are also subject to higher insurance costs, and the combination of the two is almost certain to price the hobby out of reach for a young driver. In this case, though, there’s another way to reduce your premiums to a much more acceptable level, and that’s by getting a specialty classic car insurance policy though a company that deals specifically with this area of auto insurance.

Young Driver Restrictions

Among these providers, some do have restrictions on the experience level of drivers they’ll cover. For example, with Hagerty, you’ll need at least 5 years of driving experience in certain states. With American Collectors, you’ll need at least 5 years of experience no matter where you are, and with Leland-West, you’ll need at least 9 years of driving experience.

In general, the only way to find out whether you and your vehicle are eligible for coverage or not is to go to the various providers’ websites and get a quote. This is a more than worthwhile action anyway; you’ll see just how much you can save on insurance for your classic, vintage, or antique automobile through a specialty insurer, not to mention how much more extensive the coverage is. If you’re a young driver, this is especially important, as the difference between conventional insurance and specialty classic vehicle insurance can mean the difference between keeping your classic vehicle and having to give up the hobby – or at least wait a really long time.

Edited: August 5th, 2009

Which companies offer classic car insurance?

Many auto insurance providers will cover your classic vehicle, but they’ll generally cover it as though it were a regular-use car, expecting a lot of mileage, only covering it in regular-use situations, and valuing it the same way they value any other vehicle: the older it is, the less it’s worth.

However, there are plenty of companies that provide insurance policies tailored to classic vehicles, with much lower premiums, agreed value coverage, and coverage in the variety of situations that apply to classic, vintage, and antique automobiles. This is an introduction to a few of them.

American Collectors Insurance has over 30 years of experience covering collector vehicles. They offer flexible usage plans, aiming to give you the best possible value for your car at the mileage level at which you prefer to use it. Additionally, American Collectors will cover spare parts for your classic vehicle at up to $500 a year. They also offer an inflation guard which increases the value of your vehicle by up to 8% in a year, 30-day new purchase coverage at up to $25,000, and an optional TLC (Towing and Labor for Collectors) package which offers coverage for a wide variety of situations, including towing and roadside assistance, locksmith fees, and more.

CHROME Specialty Vehicle Insurance is part of ANPAC, one of the largest families of insurance providers in the United States. Their policy features for classic vehicle coverage include their “Multi-CHROME Discount,” a volume discount that increases with each additional car you have covered. This discount can go as high as 85%. They cover vehicles used at up to 10,000 miles per year, and offer $1000 in spare parts coverage, 24/7 claims services, and a “common cause of loss deductible,” which means that you pay only one deductible even if multiple items are damaged in the same incident.

Grundy Worldwide will cover your hobby vehicle without any model, year, or mileage limitations. They offer liability limits of up to $1,000,000; an inflation guard of 4% per year; spare parts coverage of up to $500; “Trip Interruption” coverage, up to $600 for expenses incurred as a result of an accident or breakdown such as lodging; and medical coverage for injuries occurring at auto shows.

Hagerty Insurance has offices in the US, Canada, and the UK. Their service features include: an in-house claims department; new purchase coverage of up to $50,000; a business-use endorsement, allowing you to use your classic vehicle for business purposes without having to worry about whether you’ll be covered in the event of an accident or not; foreign touring coverage; coverage for motorcycle safety equipment; memorabilia coverage; a single liability charge; and various information resources and classic car hobbyist community features.

Leland-West Insurance Brokers are backed by the A+-rated American Modern Insurance Group. They offer new purchase coverage at up to $100,000, as well as $750 in accessory theft coverage, windshield repair or replacement coverage, and multi-vehicle discounts.

Edited: August 5th, 2009