Classic Car Insurance

[Ron Luchene]

I know this topic has been covered in the past but based on the little research I have done in the last 24 hours it would seem that a lot of information from past posts is now dated.

My '65 Riviera has been insured with State Farm since I purchased it. I was willing to pay a higher premium because the clauses in the Hagerty and Grundy policies about vehicle use and what was covered scared me a bit. Based on my conversations with both companies it now seems that they are more relaxed about use. They object to daily driver use but I was insistent that I want to drive the vehicle to work and for errands at least a day every other week or so. I asked the question several different ways and both companies insist I am covered. Three years ago the answers were very different from both of these companies. I would love to see statitics on denied claims by Classic Car insurance companies and reasons for the denials. I know...I'm dreaming!

Grundy is cheaper but Haggerty was much more helpful on the phone and provided several reasons why I should be willing to pay more for their coverage. Are there other companies I should consider?

Please weigh in and let me know your thoughts and experiences.

Thanks - Ron

[Guest brh]

I moved my coverage to Haggerty a long time ago. At the time that I did my research, several people had nothing but positive comments. I had Country Companies who put me through the wringer just to insure the car for well under market value. Haggerty not only watches the value of the car, as well as tips, hints and other helpful comments which make me feel good. One thing that swayed me was towing, I believe my policy states all towing is to be done by flat bed, I felt that was an important feature. In short, who ever you decide, I'd recommend checking their towing policy, I didn't put all that work into my car to be damaged while towing by hook.

[buick5563]

I have Hagarty and they do have a good towing policy. My car has been towed twice on their dime, both times on a flatbed. I'm not sure about daily driver usage.

[Guest my3buicks]

I have had Hagarty for years and years, switched from Condon & Skelley. I have been totally satisfied with all aspects.

I had a claim several years ago - my brand new top on my 69 Electra was sliced open when it was at the Radiator shop 2 weeks before the Bca Nationals in Flint(1ooth Annvs. I was sick as that was the car I had planned on taking. I told Hagarty my plight - they called the shop I had the top done at, told them a check was on the way and to commence replacement of the top ASAP. I took that car to the nationals with a perfect top.

[Guest palosfv3]

Watch you annual mileage limit. Some policies only allow 2000 miles and I know of one fellow whos claim was denied because he went over the mileage limit .

[Ron Luchene]

Both Hagerty and Grundy advertise unlimited mileage. Hagerty does have a great Towing option which states "Flat Bed" towing. If you purchase their premium towing package it includes towing for every vehicle you own regardless of who insures the vehicle.

I just received a copy of the application from Hagerty. Here is their statement on Use.

USE:

1. My vehicle(s) will be used on a limited basis consistent with the operation of a collectible vehicle such as occasional pleasure drives and club / hobby

activities.

2. My vehicle(s) will not be used frequently for regular driving such as driving to and from work or school, shopping, errands, general transportation or back-up use.

Any Grundy customers out there?

[NTX5467]

When I saw the Haggerty commercial about towing, I checked their website and found that it was good for about 15 miles and to the first shop. In other words, they'd sent the flat bed truck to get the car and hopefully to the closest repair shop, but it seems that if that repair shop is outside of their mileage spec, it's your pocket that would cover the balance of the bill (past what they said they'd pay for).

BUT, it seems that every towing service (at least in this part of the world) has upgraded to a flat bed tow truck--seems that insurance is less expensive and it's just a better way to do things. Less chance of things happening to the customer's vehicle, too! It's possible that AAA has similar tow services contracted for their members.

To me, the "locked garage" spec was the issue. Some required it, others kind of danced around it. Haven't checked with my SFarm agent, though, as it seems that local agent employees only seem to be able to write things up and submit them rather than give you firm information and answers to your questions.

Don't forget about the "stated value" vs. "agreed value" issues! These can be TWO highly significant issues should you have a claim!

Just some thoughts . . . and seeing what others have to comment on the basic posted question.

Enjoy!

NTX5467

[Lapham3]

I have used State Farm for daily drivers for almost 40 years, but they were not competetive for me with 'limited use' and 'special interest' cars when they entered the "Collector Car" market a few years ago. I have 5 older Buicks-Pontiacs and 4 newer various with Classic Auto Insurance of Indianapolis-have used them for about 15 years with most accepted at agreed value and the rest moved from stated to agreed after some years of 'history' with them-premiums have consistantly been $600-700/year-even as I moved from 'middle age' to a bit older- Dan Mpls. Mn.

[Guest sintid58]

I have used J C Taylor since 1992 and had excellent service from them. They have told me that as long as I don't make a major habit of driving it daily they don't have a problem. I have increased the value of my cars as I work on them and they are not hard to deal with as far as where the car is stored. I am in the process of adding a 64 GMC modified pickup to my policy and even though the policy is different I will be getting a discount and they added it to my existing policy until I receive the modified packet in the mail and get it back to them. I have had 2 claims and no problems or even questions about them they just paid them. I beleive they may be a little higher than some and the only problem I really have with their policy is that you have to be at least 26 years old to drive the cars and that leaves my 19 year old son out after he has helped me work on the cars.

[Guest dcdpgh]

I'm relatively new to this game (past 5 years or so), so many of these questions and discussion points are still fresh in my mind from my research. I am running with Hagerty, although I do not buy the road side assistance from them. Here were my conclusions:

Cost - I have State Farm for my daily drivers, and while they do offer agreed value collectible vehicle policies that save money over a "traditional" car policy, they could not match Hagerty's pricing for comparable coverage.

Towing - I purchased Hagerty's "Plus" package at first, enticed by the flatbed service guarentee - but the coverage range is very low as stated below with the entry level Plus coverage. I considered upgrading to their Premium Plus to get more coverage and add my daily cars, but realized I could get the same (or better) enhanced coverge range for all my vehicles by upgrading my AAA membership to the AAA Plus level. It was cheaper to upgrade my AAA level then to upgrade my Hagerty roadside coverage. And - AAA will provide flatbed service if you request it. I have friends who have made this coverage switch to AAA for their colectible car towing needs, and have never had an issue with AAA balking at flatbed service for their old car. I have not (fortunately) had reason to test this claim fo myself.

Customer service - I have had nothing short of prompt, pleasant experiences in communicating with Hagerty. Luckily I have not had reason to file a claim, but I have read here and on other forums that Hagerty has a good reputation when it comes to settling claims.

For what its worth.

[MartyWorld]

Will anyone insure a classic vehicle for daily driver use?

Marty

[Guest Kingoftheroad]

Will anyone insure a classic vehicle for daily driver use?

Marty

Not to my knowledge.

As far as I know, you can't buy "Classic Car Insurance" that covers daily driving..

You can buy regular car insurance to cover your classic during daily use....

[NTX5467]

One of the reasons that "classic car insurance" is less expensive than "normal" car insurance is the fact that the insured vehicle will NOT see the "perils" of daily driving on a regular basis. Therefore, with less exposure to possible damage, the rates are less. Less exposure to normal daily traffic. Less exposure to damage while parked (one reason for the "locked garage" spec some policies have. Therefore, claims should be lower. Plus, as these are treasured vehicles of special interest to their owners, they are probably driven in a more-sane manner than other vehicles the insured might own.

In one respect, all insurance is "stated value" insurance, even the "normal" insurance, as the rates are "per $1000.00 of vehicle value" (value determined by their figures or specified by the owner, if the vehicles are older than a certain age). In the event of a loss, the adjuster makes the damage estimate and things progress from there . . . whether "stated value" or "regular". ONLY in the "agreed value" policy will the total loss payout approach the value put upon it by the insured . . . as it's THAT the value that rates have been paid on. I suspect that in the case of "agreed value", it might be harder to buy-back the salvage/remains of the vehicle that the insurance company just paid a claim on -- but this could be a variable deal.

Just some thoughts . . .

NTX5467

[Ron Luchene]

I went ahead and signed up with Hagerty this afternoon. My existing policy with State Farm is up next week and I didn't want to risk a lapse in coverage.

I'm sure Grundy is a good company but I made several calls to both Grundy and Hagerty in the last couple of days, asking identical questions and the level of customer service from Grundy just didn't rise to that provided by Hagerty. Hagerty was nearly 50% higher on the premium but I believe their customer service is worth the extra dollars.

In addition, both companies acknowledge their product is somewhat fluid and continues to be enhanced each year. While this forum and others provide great insight, the specifics about policy features stated in this thread will soon be dated. Take the time to investigate on your own when the time comes to make a buying decision.

Thanks for the replies!

Ron

[MartyWorld]

After spending time and money on our classics, it would be nice to drive them

on a fairly regular basis.

Therefore, I am considering driving my Riviera daily.

To have all of that money tied up and just sitting in the garage to use less than

a couple of thousand miles a year just seems wasteful.

When the vehicle is started and driven daily it runs better and the gaskets

and seals last longer.

Thoughts?

Marty

[Ben Bruce aka First Born]

I AGREE, TOTALLY.

Ben

[NTX5467]

Another consideration is how it might be registered in your respective states. If it's registered as an "antique" that also puts restrictions upon how the vehicle can be used, which also puts it out of the "daily driver" situation really quick.

I believe that it's recognized that a vehicle which sees some constant use is better off than one that sits all of the time, especiallly with ethanol'd fuels in the tank. But if you want the perceived benefits of collector car insurance and reduced-rate state vehicle registrations, you'll need to follow "their rules" as best you can.

Regards,

NTX5467

[buick5563]

Last three posts sum it up.

[Thriller]

Last three posts sum it up.

Aye. I currently have regular plates (not really any options here) and regular insurance. I wouldn't want to deal with whether or not I should have been driving on a particular day to a particular location if it should happen to be involved in a collision. Insurance is about insuring against loss and most of these policies won't pay out - they are about peace of mind in that should the unexpected occur, it won't cost so much money that it causes hardship.

[Ron Luchene]

Derek - I agree. If this car were my daily driver I wouldn't even have considered moving to Haggerty or any other classic car insurer. Having said that, while researching this topic I never came across a single post where Haggerty or Grundy refused to pay the claim. There were a few postings where folks indicated they had to fight for 30 days but in all cases folks stated the claim was paid. Most stated thier claim was paid without question.

Another factor for me was that I carry an Umbrella policy with State Farm. Many of the classic car insurers will not provide coverage for the higher liability limits especially for uninsured or under insured motorists. Haggerty offers $250,000/$500,000/$100,000 in both cases which was the minimum required to keep my umbrella policy in force. Had I not found a company that insured at the higher limits I would have maintained my insurance for my '65 Riviera with State Farm.

In the end both forms of insurance have pros and cons. I hope I just pay premiums and never have to collect!

[Guest Kingoftheroad]

I've heard nothing but good things about Hagerty & a few other classic car insurers. Folks who lost their classics said, they just called and / or mailed the claim in on their loss & the company took care of them without hassle.... I haven't really heard any negative comments about this subject..

[Guest COMPACTBC]

Ron, Grundy offers $1,000,000 liability coverage.

[Guest Chubb Car Guy Jim]

Ron -

I work for a company that competes with Hagerty and Grundy on classic car insurance. If you're not going to buy coverage from my employer (Classic Car Insurance Online | Chubb Collector Car Insurance), then you made the right choice to go with Hagerty.

Most of the top collector car specialist insurance companies have relaxed the usage restrictions in the past few years, meaning you can occasionally take the car to work or on and errand without worrying that you're not covered.

re: stated value vs. Agreed Value. Without getting in to too much insurance speak, let me summarize this way - a stated value benefits only the insurance company, not the consumer. While they sound similar, Agreed Value means you know exactly how much you'll get paid for a total loss, and removes any haggling. Hope this helps -

Jim

[Ron Luchene]

Thanks Jim. I did go with Hagerty but will likely shop around again next year to insure I continue to get the most value for dollars spent. You are 100% correct about how usage restrictions have been relaxed. I imagine insurance companies will continue to enhance their product to differentiate themselves from those they compete with.

Ron

[Guest DinoBob]

I do not have a garage- most companies would not touch me. State Farm did. I pay about $300 a year for my '60 Buick, far more than other companies, but they did not require a garage.