I have collector car insurance already, so I'm fine, right?
So you're heading out on your next rally. Maybe you are all set to cruise in the Targa California, or you are setting your sites for south of the border on the Targa Baja California. Great! We'll see you there in our favorite Porsche. It was a blast last year- check out this video!
Almost every classic car enthusiast has made sure they have coverage for their collector car.
But it might not be enough.
If you already have specialty car insurance on your beautiful classic car, the next step is to make sure that you don't have one of the three most common gaps in coverage. So here they are:
1. Mileage or Use Restrictions
Not all collector and classic car policies are created equal. There's a reason for this, and it's not all bad. Because we collectors all have unique and individual lifestyles, and because we all have different things we do with our "babies," we all need different kinds of coverage. And we are usually willing to be specific with our insurance company about exactly what we need coverage for- and what we don't. We don't want to pay for coverage we don't need, right?
But what about when our usage needs change? Do we remember to call our agent?
If you have not looked at your policy in a while- maybe it's been years- you should. And it doesn't hurt to have someone who knows collector cars and insurance to look at it with you (shameless plug for St. Clair Insurance Agency). Specialty policies can be confusing- don't review your policy alone. Call me.
Let's just mention a few of the things we can check:
2. Inadequate UM/UIM coverage
You are driving on a Sunday afternoon. The skies are clear and the road is smooth. Suddenly, a clown in a sedan who isn't paying attention rolls through a stop sign. You are paying attention- you see him. But he still clips the front panel of your newly restored classic car. It's not a horrible crash, but the cost to repair it is still pretty high.
Then you find out he is under-insured (or worse, uninsured).
Do you know how your claim will be handled? Does your "regular" policy step in and cover the loss? Or is it your collector car insurance policy that's called on to get things paid for? And if so- is it enough to cover the claim? We all know how expensive it is to repair our vintage cars.
This is an area that many car collectors overlook. Check it out, and make sure you have this possible gap in coverage protected.
3. The agreed-value isn't enough to replace your car
"Agreed-value" policies can be your best friends. Many car collectors have them. They help avoid confusion and arguing with the insurance company at claim time.
So you went out and got an appraisal three years ago for your vintage car. You and the insurance company agreed to insure it for that amount. So far, so good.
But that was three years ago.
Do you know what your car is worth today? Do you know how much it would take to repair or replace it? Has it gone up in value? You probably know if it has- but your insurance policy may not reflect that. If it doesn't, come claim time, you may be in serious trouble. The insurance company could be in a position to "total" your car, write you a check for far less than it is worth today, fix it themselves, and resell it and make a profit. All because you had it under-insured.
Don't let that happen. Review your policy with me as soon as you can!
I love my cars as much as you do. I'm the proud owner of '78 Porsche. I can't imagine how I'd feel if I found out after an accident that I didn't have the right kind of coverage.
Call me at (951) 284-0400, or visit my website. I can help.