Classic car insurance w/o garage

[Peter J.Heizmann]

I have never seen a flashing red arrow or flashing red light for a left turn on red here in Maine or New England. I've also never seen a sign stating that it is okay to complete a left turn on red when traffic clears. Our intersections have a red light at which you stop until you get a green arrow or a plain green light. A green arrow means traffic coming the other way has a red light; a green light means that you can turn left when traffic coming the other way has cleared.

Maybe a flashing red is a southern thing?

John,

Classic car insurance w/out a garage.

[John_Maine]

John, He is from Michigan.... so it is not a "southern thing". A flashing red light in NC means the same thing as a stop sign. I have never heard of a left turn on red here, but at a flashing red light, after stopping and making sure it is safe to proceed, you can go.

I agree. I was thinking of an intersection with a left turn lane as well as a straight ahead lane. If it's a simple 4 way intersection (or any intersection) with a flashing red, then yes, you can turn left (or right or go straight) when it is clear to proceed after stopping.

I thought I read that he was from Virginia that's why I mentioned "southern thing."

Edited March 15, 2011 by John_Maine (see edit history)

[rocketraider]

Nope. The Vajenyan went to Michigan and encountered left-on-red.

Peter, I daresay people who take a collector car to a show in a state with different laws like this example could end up having an insurance claim, so it kinda relates to OT. E.G. , a Michigan driver in Virginia who made a left turn on red (illegal in VA) and got into a crash would be found at fault and end up shouldering the insurance liability.

Also, if MI and VA have a reciprocal agreement in effect, even an illegal left turn with only a ticket written might show up on MI driving record and result in higher insurance premiums. A collector policy might even cancel depending on if ticket was unsafe movement, illegal turn, or reckless driving.

Bottom line it pays to learn another state's road laws and insurance stuff if you're taking your old car to show or tour there.

[Guest Chubb Car Guy Jim]

All -

I've stayed on the sidelines so that folks wouldn't mistake my comments as being an advertisement. This discussion is now old enough that I can throw in my two cents w/out being tagged an advertorial.

Skibum starts the discussion by defining his need: he wants liability coverage for his truck. As such, he's priced out both a standard private passenger policy and a collector policy (which comes will full coverage).

Here's the deal - insurance companies charge low rates for classic cars because they aren't used much and are treated like babies by their owners, which makes is profitable for us even at rates 1/3 what you would pay for a regular car.

However, there is a big difference between a classic car enthusiast and someone who is looking for cheap rates (no offense skibum). Which, in turn, is why the various collector specialists insist on garaged vehicles for their programs.

Garages are indeed better protection for your classic car. Yes, they may collapse or catch fire, and yes, "locks only keep the honest people out". But the reality of leaving a classic car ungaraged is worse. Not only are you broadcasting to everyone that you have something worth stealing, the car is also exposed to other causes of loss - hail, falling tree limbs, angry ex-girlfriends, etc.

My two cents.

[Guest DinoBob]

I am one of those for whom a garage is just not an option at present- my family obligations and finances just are not going to permit it. The insurance issue was a very big factor in whether or not I could own a classic. I was not looking for cheap insurance for a driver- that is another issue - so mileage restrictions were not a make or break, within reason. But storage was.

State Farm offered me a full coverage, stated value policy for my '60 Buick. $300 or so per year. No garage required. Car had to be stock, they wanted an in person looksee, and I am not supposed to use it as a daily driver. That worked for me. Current stated value is$3500 which will increase as work progresses. I hope this helps someone in a similar position.

Excuse any misspellings. Posted from my Droid.

[Shop Rat]

Have you put an ad on the Commercial Forum for the insurance company that your represent? I for one had never heard of that company.

It never hurts to have someone in a business tell others why they do what they do.

[Guest Kingoftheroad]

I am one of those for whom a garage is just not an option at present- my family obligations and finances just are not going to permit it. The insurance issue was a very big factor in whether or not I could own a classic. I was not looking for cheap insurance for a driver- that is another issue - so mileage restrictions were not a make or break, within reason. But storage was.

State Farm offered me a full coverage, stated value policy for my '60 Buick. $300 or so per year. No garage required. Car had to be stock, they wanted an in person looksee, and I am not supposed to use it as a daily driver. That worked for me. Current stated value is$3500 which will increase as work progresses. I hope this helps someone in a similar position.

Excuse any misspellings. Posted from my Droid.

Long time ago, I used State Farm for my classics (and I was happy with that) till a fellow Buick owner clued me in on classic car insurance companies.

[Guest Chubb Car Guy Jim]

Dino -

Sorry to sound like an insurance geek (sad, but true), a "stated value" is not the same as "agreed value".

A stated value policy will pay you either the Actual Cash Value (current market value), or the stated value on the policy, whichever is lower .

A stated value policy protects the insurance company by setting a cap on what they'll pay. It gives the ccompany the option to tell you during a claim that since the car isn't worth as much as you thought, so they have the option to pay an amount lower than the stated value.

Long story short, stated value introduces haggling to the claims negotiation, while agreed value is the exact amount you'll get at the time of a covered loss.

Having said all that, it sounds like State Farm is meeting you needs - just want to make sure you know what you're buying.

[Guest DinoBob]

Appreciated. I read a whole thread on that once and someone clued me in on the very real difference. While I would prefer agreed value my options are very limited without permanent shelter. Thank you though- for years I had no idea there was a difference.

[Guest Klayfish]

Dino -

Sorry to sound like an insurance geek (sad, but true), a "stated value" is not the same as "agreed value".

A stated value policy will pay you either the Actual Cash Value (current market value), or the stated value on the policy, whichever is lower .

A stated value policy protects the insurance company by setting a cap on what they'll pay. It gives the ccompany the option to tell you during a claim that since the car isn't worth as much as you thought, so they have the option to pay an amount lower than the stated value.

Long story short, stated value introduces haggling to the claims negotiation, while agreed value is the exact amount you'll get at the time of a covered loss.

Having said all that, it sounds like State Farm is meeting you needs - just want to make sure you know what you're buying.

Jim,

Good to see another insurance "geek". I work in the business as well. Currently am a claims "consultant", but have been in claims my whole career. Adjuster, appraiser, SIU and manager. Used to work for a company that had an underwriting company that wrote collector car (Great American). I'm even a Bucks County native too, hometown is Yardley. Now live in Montgomery/Berks County.

Great explanation of agreed vs. stated value. Very few people understand the difference. You're also spot on about how collector car insurance works and why it's so cheap. The concept is that these cars are "garage queens" and only driven casually for a summer cruise or a parade. The liability risk is much lower. And you're right about the risks involved with leaving these cars outside, much worse than the slight risk the house will collapse. Lots of people want in on the low rates...I investigated several claims when I was in SIU with collector policies.

Edited June 22, 2011 by Klayfish (see edit history)