Jill Bookman is a licensed agent and the Director of Marketing
for American Collectors Insurance, a leading national specialty provider of
collector vehicle insurance. If you have other questions that are not covered
in our list of frequently asked questions, please email Jill your questions today.
Let American Collectors Insurance give you an
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Q.
I am going to purchase a 1933 Ford 3 Window Coupe in the week after
Christmas for the sum of $39,000. The car is in the Midwest and I live in
California. The car will be transported by Horseless Carriage. Should I
insure it at the time I buy it and before transport? I have an excellent
driving record; can you give me a ballpark estimate of what a full coverage
insurance package might run?
A.
Congratulations on your new purchase! In reference to your transporting
question, I would recommend contacting the transporting company to see about
an insurance provision while the vehicle is in transport (it should be part
of their service agreement) . American Collectors Insurance requires the
collector vehicle to be in your care, custody and control before coverage
can be made effective.
Assuming that your vehicle is modified, full coverage for the year would run
approximately $620.00. This is based upon an agreed value of $40,000 with a
$500 deductible for comprehensive & collision coverage. This number could
vary slightly depending on your desired limits of liability and deductibles.
If this vehicle is an original, non-modified 1933 Ford, please advise and I
will provide you with another quote.
Q.
I might be getting a 1969 GTO soon. What type of insurance would I need to
get? What would be the cost. I live in NJ and I will be using it on
occasion and fixing it up. Or should I just put liability coverage only on
the GTO?
A.
If you insure the vehicle for just liability, then the car itself won't be
protected. If that doesn't bother you, then that's the way to go (since
collector vehicle insurers won't sell liability as a single coverage,
anyway). If, on the other hand, you are concerned with something happening
to the car & being properly compensated for your loss, then collector
vehicle insurance is something you should consider. Note, there are
restrictions that accompany a collector vehicle policy; namely, usage is
limited to occasional pleasure driving and hobby activities, and the vehicle
must be garage-kept when not in use. Collector vehicle insurance is fairly
inexpensive compared to most standard auto insurance rates. For example,
you don't say how much you will be paying for the GTO, but let's say it's
currently worth $10,000. At that value, you would pay approx. $60/year for
comprehensive & collision coverage (and that's with a zero deductible in
most states), plus another $40 or so for liability, med pay and
uninsured/underinsured motorist coverage (depending on what limits you
select). So, total annual premium would be in the neighborhood of $100.
Hope this helps!
Q.
Hi. My husband and I just bought a 53 chevy coupe. Is it possible to make
it more of a daily driver than just the average 1500 miles/year? Do you
know of the best way to do that, insurance and inspection wise?
A.
All the collector vehicle insurance programs that I'm familiar with do not
allow insured vehicles to be used as daily drivers; the low collector rates
simply can't afford that type of exposure. Our program, for example, allows
a maximum of 2,500 miles/year (hobby activities/pleasure driving only). If
your '53 Chevy will be used as a daily driver and you're concerned about the
car's collector value being protected, I would suggest that you (or your
agent) contact some carriers that offer "stated amount" insurance (which
obligates the insurer to pay up to the full vehicle value stated on the
policy in the event of total loss). This coverage will likely cost more
than collector insurance, but your usage will not be restricted. Good luck!
Q.
Dear Jill - I have a 33 ford that has been appraised at $54,000. We have it
insured for $45,000( that is what I have invested) and it cost us $1100 a
year with $500 deductible. We have all our vehicles insured through
Allstate. Is there a cheaper or better way to go? We also keep it insured
all year long. We keep it stored from Nov. till April. If we dropped the
insurance while it is stored would it be covered? Who would be responsible
for it?
A.
You should definitely contact your insurance agent and tell him/her that you
want "comprehensive" physical damage coverage on the '55 Bel Air. That way
the car is covered for damage or loss resulting from theft, fire, etc. You
can add collision & liability coverage to the policy when your restoration
is complete and the vehicle is ready for the road. Since you say the
vehicle will be a daily driver, you will not be able to qualify for
collector insurance, which restricts usage of the vehicle. Your other two
vehicles may qualify for collector insurance; you are welcome to write back
to me describing the vehicles and their intended use.
A full year of full coverage through American Collectors would cost you
approx. $785. This is an "approximate" quote because you don't mention what
state you're in, but our rates don't vary that much state-to-state. This
quote includes $45,000 of Agreed Value coverage on the vehicle (meaning the
full insured value of the vehicle is guaranteed in the event of total loss)
with a $500 deductible, $100,000 liability, med pay and min. statutory
required uninsured/underinsured motorist coverage.
If you remain with Allstate and want to drop coverage because the car's in
storage for the winter, drop everything BUT the comprehensive coverage
(sometimes called "other than collision"). That way your vehicle will
remain covered and the Company will be responsible for paying any claims due
to a comprehensive loss (e.g., fire, theft, etc.). Just DON'T forget that
you dropped the other coverages and then decide to take a spin in the car on
one of those rare nice winter days - because if you do have an incident and
there is no coverage, the Company will definitely NOT pay your claim.
Q.
I have 3 collector vehicles plus my 94 Acura which I use for all my normal
driving. My collector vehicles are being submitted to you for coverage. This
will leave only the Acura on the Travelers policy and I will lose my
multi-car discount. Can I have all of them covered by you and also have one
on the Travelers policy (with liability only) so that I still get the
multi-car discount on the Acura? They are all garaged and not driven.
A.
If you like, we would be willing to consider insuring the collector vehicles
for physical damage only (comprehensive & collision coverage) and you could
leave the liability coverage with Travelers on all the cars. You do not
have to purchase "full coverage" with us, if it is to your cost advantage to
do otherwise. Please reply or call us toll-free if you have any other
questions. Thank you.
Q.
I have a ground up fully restored 1965/69 Triumph GT6 Convertible. This car
is insured in the state of Virginia by Allstate Insurance. I have spent
over $25,000 in the restoration and would like to secure additional
insurance on the vehicle for a stated value of $25,000. I purchased this
car new in 1965. My objective is to make sure that should the car be
damaged I can restore it to its present condition. Could you provide
assistance or suggestions.
A.
If you use your Triumph within the guidelines of a collector policy (keep it
garaged and drive it no more than 2,500 miles/year) then I would advise
obtaining insurance through a collector vehicle insurance market.
American Collectors Insurance has provided collector vehicle insurance in VA
for many years, and we offer a policy that would protect your investment in
the Triumph (although we do not have "Agreed Value" wording in our Virginia
policy, "total loss" claims are settled based upon the limit of liability
shown on the declarations page). I think you will also find that our rates
compare quite favorably (your annual premium with ACI for full coverage
would be in the neighborhood of $200/year, a little higher or lower
depending on what limits you select).
If you would like to obtain a quote on your Triumph, please contact our
customer service department at 1-800-360-2277 or visit us on the web at
www.AmericanCollectors.com for an instant, online quote.
Q.
Jill, I have a 1970 Pro-Street Split Bumper Camaro. It has a 496 cubic inch
"Aluminum Head", "Blown" Big Block, (BDS 871), Fuel Injected, a Ford 9 inch
rear with a 4 Link suspension kit, automatic transmission, 4 wheel disc
brakes and custom paint. I would like to insure it for approximately
$25 -$30,000 for pleasure purposes only.
I currently trailer it to and from shows, but would like to register it
so I can drive it to the shows. I need a quote and an insurance company that
will cover such a car. I live in Maryland and am approximately 40 years old.
I have received quotes from other insurance companies at shows, but when I
send them photo's I receive a reply that their current underwriters
policies do not allow them to provide coverage at this time. Can you help me out?
I don't need just a quote, I need the coverage too.
Thanx, Jeff
A.
Hi Jeff,
American Collectors insures both original ("stock") and modified
vehicles as "new" as 1987 (except in Massachusetts where vehicles must be at least
25 years old). From what you're telling me, although your Camaro is highly
modified, you are not using it for any timed or racing events. If that
is the case, we would certainly consider insuring your vehicle through our
market. Insurance companies are often hesitant to provide coverage for
cars that are geared for racing because many auto policies (ours included)
specifically exclude racing and timed events. But as long as you are
using your collector vehicle for car shows and occasional pleasure drives
only, it sounds like we can help.
Please call us if you'd like to obtain a rate quote and policy
application (or you can obtain these online at www.AmericanCollectors.com). Note
that "modified vehicle" applications must include 4 color photos of your
vehicle (2 exterior, 1 interior & 1 engine). Thanks for your interest in
American Collectors Insurance!
Q.
Hi Jill, I have a 1957 Chevrolet 2-door Bel-Air hardtop that is undergoing
restoration. The body is now back on the frame and we expect to paint
it within the next month. I currently have it insured based on what the
car looked like before this restoration. Should I wait to discuss insurance
rates/coverage with you after I get my car completed or can we begin to
discuss these now? Mark H., Missouri
A.
Hi Mark, It sounds as though you have just about wrapped up a frame-off
restoration, so we can definitely discuss insurance coverage now. I'm sure you want
your investment protected! American Collectors provides comprehensive coverage for vehicles that
are in various stages of restoration, as long as all of the parts are in the
owner's care, custody and control (and not scattered about at various
vendor shops). Coverage in most states (including yours) is "Agreed Value,"
meaning that the full insured value of your vehicle is guaranteed in the
event of total loss. Comprehensive coverage (sometimes defined as "other than collision")
covers loss or damage to your vehicle resulting from fire, theft, vandalism,
windstorm, glass breakage, etc. Once the restoration is complete and
you are ready to drive the Bel Air, you'll want to add liability, medical,
uninsured motorist coverage and collision to your policy. To obtain a quote for
"comprehensive only," visit our website at
www.AmericanCollectors.com or call our customer service department at 1
(800) 360-2277.
Q.
Jill, we are having a '34 Coupe built professionally buy a reliable restorer. Nothing has been
spared. When completed it will look just like an original, although it will be powered by a 350
small block Chevrolet and have automatic transmission, Air, PS, PB, Electric Windows etc. My
question is, where do you get the best insurance coverage for a kit car? Thanks, Shirley
A.
Hi Shirley - Sounds like we're talking about a professionally built street rod, here, not really a
kit car. Sometimes it can be tricky to insure a kit car because it is difficult for an agent to
assess the ability (or inability) of the "home mechanic." However, in your case where the car has
been professionally built, you'll want to get quotes for street rod insurance. There are several
national agencies (American Collectors included) that offer very competitive street rod rates.
Q.
Jill, where does a person get adequate coverage on a collector car valued at $25,000 and driven daily
6000 miles a year? Frank
A.
Hi Frank - Since your classic car is a daily driver, you're not going to qualify for "collector" car insurance,
which limits driving to pleasure and hobby use only. My suggestion would be to contact (or have your agent contact)
a "regular" car insurer that offers "stated amount" insurance. A stated amount policy states the value of the vehicle
on the declarations page of the policy, and in the event of total loss, the insurer is obliged to pay up to the amount
stated. Thoroughly document your vehicle & keep good records in the event you ever do have a claim. You're going to
pay more for this kind of insurance, but the only way to pay less would be to agree to restrict your usage & use a
different vehicle for everyday.
Q.
Jill, I have a 1964 Corvair Convertible, which I use only on weekend cruises in the summer/fall, if at all. The
problem is that I live in New York City (Manhattan) and do not have, nor need, another "regular" car. I take the
subway/bus/cabs/my feet everywhere, including work. I can't seem to find a collectible car insurance to cover this
and regular car insurance companies don't seem to have coverage or charge more than the value of the car. Do you have
any suggestions short of selling the car? Thanks, Jason R.
A.
Hi Jason - Don't sell the car! However, in your present situation, I don't think you're going to have much luck with
collector car insurers. They generally require as many "regular use" vehicles as there are licensed drivers in the household.
The underwriting logic is that otherwise, the collector vehicle is in jeopardy of being used as a "regular" car, and the low
"collector" rates just don't support that kind of exposure. I know this may not apply to your situation, but classic car agencies
also have contract arrangements with their underwriters that prohibit them from accepting risks which are outside of specified
underwriting rules. As I see it you have 2 options: 1) buy another car & move to Jersey (hey, it's not so bad here!), or 2)
contact a "regular" car insurer that offers "stated amount" insurance (e.g., State Farm). You will pay more through a regular insurer,
but at least the value of the car will be protected up to the stated amount.
Q.
Jill, I have 6 Classic Cars currently from 1955 to 1972 but most (4) are from the 1960s. I am 55 years old. It has been decades since I
was involved in a wreck. Furthermore, my driving record would be difficult to beat. I have had my car insurance for many decades with State
Farm and my "Classic" cars are also covered by State Farm at a fairly decent rate. Mine are currently only "drivers" so I don't see the
need for anything other than for "liability" (and the Georgia-required 'no-fault' coverage). When I get what I "really" desire (a SS with A/C!),
it will be covered fully. While I have only ever sold ONE of my Classics, I do desire to continue to purchase as well as sell and perhaps even
exchange. Each time I purchase another Classic, TWO trips are usually required to State Farm (which has moved and is about 20 minutes from me now).
I usually get the "binder" first thing so I can get the tag (and sometimes drive them home). For some unknown reason, State Farm "requires" a picture
(even without full coverage!). I once put off going for over a week and was sent a "regular" policy and bill for the additional premium!!!!!
Needless to say, I got right over there!!! It would be SO nice to find an Insurance Company that would simply let me "CALL" in the VIN# and perhaps
then FAX me a binder. Would this be possible with your company? Also let me know about prices. Thanks, Ed Brown
A.
Hi Ed - Even if your classic cars are currently in less than "show quality" condition, you should consider pursuing full coverage through a classic car insurer.
I'm pretty sure you'd pay less for full coverage through a specialty insurer than for "liability only" through a regular insurer. Of course, a specialty insurer
is going to require you to garage the vehicles and use the cars for pleasure/hobby only, so if that doesn't work for you, then keep the cars where they are! As
to adding cars to your policy with minimal fuss, I can only speak for American Collectors Insurance. Our policy provides automatic, 30-day coverage for vehicles
that are added to a collection during the policy term (values up to $25,000). Within that 30-day window, policyholders need to inform us of their purchase. We
endorse the policy and send a bill with a request for photos (which should support the requested vehicle value). If you'd like to get a quote from American Collectors,
please call 1 (800) 360-2277.
Q.
Why is collector car insurance so inexpensive relative to the cost of
standard auto insurance?
A.
Generally speaking, since collector vehicles are driven on a limited
basis & spend most of their time (let's face it) in the garage, the risk of loss
to collector vehicles is much lower than the risk posed to insurers by
regularly-driven vehicles. Therefore, specialty insurance providers - such
as American Collectors Insurance - are able to offer collector vehicle
rates that are much, much lower than standard auto insurance rates.
Q.
I am getting ready to purchase my first hot rod. All the insurance
companies I've talked to require that the vehicle be housed
in a garage. Unfortunately where I live I only have a carport. I live in a
gated community that is patroled by security 24 hrs a day. Are you aware of
any insurance companies that do not require a garage? Mike J.
A.
Hi Mike - American Collectors' garage requirement is not only to protect the
collector car against theft (which it appears your current situation will
do) but also against Mother Nature. I'm afraid a carport won't "cut the
mustard" with the collector programs I'm familiar with (although you could
ask your agent to do some homework for you). If you have access to a fully
enclosed, locked garage elsewhere and would be willing to keep your hot rod
stored there, that may be a way to get around your carport problem. FYI,
collector vehicle insurance is generally very affordable because of the
requirements & restrictions placed on using & storing the vehicle. Good
luck!
Q.
I am in the process of buying a 1927 Ford Model T. It will be shipped
from Maine to me in California. It has the serial number that it came with,
not a VIN number. Can I get it insured without a VIN Number? Bruce
A.
Dear Bruce - Actually "serial number" and "vehicle identification number"
(VIN) are the same thing. With the really old cars (like the one you're
buying), the number is usually very short (about 7 digits). You'll need
this number to register the vehicle in California (which you must do if you
intend on driving it on any public road). If this car will not be driven,
you can insure the car itself (comprehensive insurance covers fire & theft)
without registering it.
Q.
How do I go about insuring an "under construction" street rod. As you can
imagine, the parts and pieces represent a substantial investment, but as
"labor" is added to the equation, the value increases. I like to think this
happens on a weekly basis, but realistically, monthly is more like it. How
is a situation like this handled, if it's handled at all. And what's recommended
in terms of coverage, seeing as how the vehicle isn't currently driveable?
A.
A vehicle which is not operable/fully assembled may be insured for "comprehensive"
coverage only, which will protect your investment in the event of fire, theft, etc.
American Collectors' policy offers "Agreed Value" coverage in most states meaning
that the full insured amount of your collector vehicle is guaranteed in the event of
total loss.
All the components of your project should be in your "care, custody & control"
(i.e., in your garage and not scattered about at different vendor shops). You do
not describe your street rod but the question of collector vehicle value is never
a black & white issue anyway; it can be very subjective (e.g., type of vehicle,
condition, location, etc.). You should try to determine a value that would fairly
indemnify you for a "total loss" to the car in its present state. You can request value
increases as your "construction project" progresses; once the car is operable, you'll
want to add liability coverage, etc. to register & drive it.
Q.
I get a multi-vehicle discount by insuring my collector vehicle with my
everyday cars. Why do I need collector vehicle insurance?
A.
Even "discounted" standard auto rates are much higher than collector
rates particularly if you own an antique (i.e., a vehicle that is at least 25
years old). Cost savings aside, the benefit of collector vehicle
insurance is this: standard auto insurance provides ACV (Actual Cash Value)
physical damage coverage, which the industry defines as "replacement
cost minus depreciation." American Collectors Insurance provides Agreed
Value physical damage coverage, which GUARANTEES the FULL INSURED VALUE of
your collector vehicle in the event of total loss, with NO DEPRECIATION.
In other words, if you have a '65 Mustang worth $12,000 and the car is
destroyed in a fire, a standard auto insurer will pay Blue Book value
(read: next to nothing) for your "old Ford." An American Collectors
policy, on the other hand, will pay (at least) $12,000 as in most states
there is $0 deductible for non-modified vehicles.
Additionally, American Collectors protects vehicle value (at no extra
charge) with "Inflation Guard," which automatically increases your
vehicle's value by 2% every three months. So if the loss described
above occurred in the 3rd quarter, you would actually receive a check for
$12,720.
Q.
What are the limitations of collector vehicle insurance coverage -
what's the "catch?
A.
To keep "collector" rates low, American Collectors places certain usage
restrictions on insured vehicles, such as: cannot be used for everyday
driving; cannot be driven more than 2,500 miles per year; must be
garage-kept. Very few collectors find these limitations to be a
hindrance; in fact, most claim it would be difficult to put 2,500 miles/year on
their collector vehicles and OF COURSE they keep their babies in a garage!
Q.
I heard that if I leave my collector vehicle "unattended" and have a
loss, my claim won't get paid!
A.
Speaking for American Collectors - No way! Your claim would be paid.
The circumstances of the claim, however, and your adherence to our usage
requirements, would be reviewed. If you left your collector car
unattended for 6 hours in a busy mall parking lot while you were doing your
Christmas shopping, for example, we would conclude that you were abusing the
program (using your collector vehicle for "regular" use) and non-renew your
policy. On the other hand, if the claim occurred when you stopped for a burger
on your way home from a weekend drive or a car show...well, that's what you have
insurance for, isn't it?!
Q.
Do I need to get my car appraised or get "QQ" [historic] plates to
qualify for American Collectors Insurance?
A.
No. The only situation where we might request an appraisal or bill of
sale is for a very high value and/or extremely rare vehicle. Our market can
accommodate any vehicle that's at least 15 years old (in Massachusetts
cars must be at least 25 years old) and used strictly on a "collector" basis
(i.e., driven less than 2500 miles/year for pleasure driving, car shows
& other hobby-related activities). You'll need to have a good idea of the
value of your vehicle because that will in large measure determine your
annual premium. We will question values that seem too high/low before
binding coverage.
Jill Bookman is a licensed Pennsylvania insurance agent. Responses are
based upon her knowledge of the national collector vehicle insurance market
and the rules & regulations governing insurance in the state of
Pennsylvania. Any advice given in response to an "Ask Jill" or "Ask the
Expert" question should be construed as general advice only and should be
confirmed by a licensed agent residing in your state.
