Does anyone know how guys with collections insure their cars? Surely a collector with a dozen or more active cars wouldn’t use a standard insurance policy for all those cars? Are there policies out there that allow you to turn insurance on and off on certain cars? For example, could a collector with 25 cars be able to insure only 5 cars at a time, and rotate the coverage to follow the cars being used at the time? I have a very small collection using standard insurance, and the premiums are killing me, especially since I’m the only driver.
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Insurance question for collectors
- Thread starter rv3flyr
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Contact an insurance broker. Note "broker", not "agent" -- agents work for insurance companies; brokers work for you.
And even though they work for you, you don't pay them; they work on commissions paid by the insurance companies.
And even though they work for you, you don't pay them; they work on commissions paid by the insurance companies.
My insurance company has coverage for what they call “exhibition autos,” which can’t be used for driving to work or school and are limited to maybe 4000 miles per year. Full coverage, cost based on stated car value.
Who do you use?
Cincinnati Financial | Insurance | Business | Personal | Life
The Cincinnati Insurance Companies strive to be Everything Insurance Should Be® by offering insurance solutions for businesses and individuals through local independent agents. With a wide range of products and services, you are sure to find answers to your insurance needs.
www.cinfin.com
The name makes them sound like a regional company, but I think they offer coverage nationally.
Great. Thanks!
I think Cincinnati Insurance company to be a fine company - good people there.
That said, think you should also check Hagerty. They write pretty much what you are needing, except the rotation aspect might be a sticking point for them/you. I've had five NSXs (now four) with them and they have been superb.
That said, think you should also check Hagerty. They write pretty much what you are needing, except the rotation aspect might be a sticking point for them/you. I've had five NSXs (now four) with them and they have been superb.
Thanks!
That sorta happens automatically, with any insurer. They understand that you can only drive one car at a time. So the premium for your liability coverage doesn't really change no matter how many cars are on the policy, and the premium for stuff like collision coverage is based on the number of miles you drive each car -- so it tends to not go up much as you add more cars.
My NSX is a daily driver, so it's covered by a regular policy that allows me to commute to work, drive unlimited miles per year, etc. But if yours is strictly a weekend car (or less) AND you also have a relatively new car for commuting, you can get specialized insurance from Hagerty or elsewhere that's significantly less expensive than regular unlimited coverage.
I still recommend talking to an insurance broker.
I have a 66 and 68 Corvette and a 70 SS Chevelle on my collector car policy. All are insured as "agreed" value. Agreed means that, in the event of a total loss, the insurance company will write me a check for the agreed amount. I also have $0 deductible for fire, theft and collision. Since I have three cars on the same policy, I get to stack my liability. I keep my uninsured limits high because one in four drivers in Florida carry no coverage. Most other cars are insured at $10K. One of the reasons why we have the highest insurance rates in the country. My premium is about $2K per year. About five years ago my premiums were about $600 per year. All cars must be garaged and I am limited to about 3K miles per year. My son is also on the policy at no extra charge. Jerry
Are you also with Hagerty? That sounds like exactly what I need. Thanks.
My policy is with American Car Collectors. They are out of Cherry Hill New Jersey. My NSX is on my corporate fleet policy. I may move it over to my collector policy as I don't use the NSX as a daily driver much anymore. Jerry
As i understand it in the US anyway the term"agreed policy" is a MAJOR misnomer. When i called hagerty to get one of these plans( i have cinncinati -but they haven't taken new sports car folks for a couple of decades now), i found there was simply no policy that allows you to "set" your own value. When a claim is made the company simply looks at the last years sales prices of what similar cars have been sold for. This is messed up! What folks are advised to do is to get a new "estimate" by a respected local estimater ($500 of crack - of do you grease their palm to get a high estimate?). There was a time i believe you could get actual agreed value policies, but no more. Street rod folks and folks like us can easily get screwed from what i see. Please hit me back if wrong, just what i found in my personal case and i'm simply too cheap to get a regular estimate. We should have all gotten estimates about a year ago when our rides were at a high he-he or paint our cars Emola Orange?
No, agreed-value policies are still a thing. Maybe you're thinking of "stated value"? That phrase is confusing because it sounds like it sets the minimum value you'll receive if there is a total loss -- but actually, it sets the MAXIMUM value that you can receive, and has no bearing on the minimum.
"Agreed value" means they'll pay no less than the agreed value; "stated value" means they'll pay NO MORE than the stated value.
Stated-value policies are really special-purpose -- they're for deliberately setting the value LOWER than what the car's actually worth, so you'll pay lower premiums. Like, suppose you own a McLaren F1. It's a $20M car, but you only paid $1M in 1999 when you sold your dot-com company, and that was the last time you really made any money, so you're trying to be frugal. Even factoring in 25 years of inflation and opportunity cost, your total out-of-pocket cost for the thing is only like $6M -- so you insure it for $10M with a stated-value policy, knowing that even if there's a total loss, you'll receive what you paid plus at least a portion of the appreciation.
Agreed value is just that. Both you and the insurance company "agree" in advance what the value of your car is before the loss. The higher the agreed value of the car, the higher the premium. Stated value is point where the negotiations begin to determine the value of your loss. Jerry
I had my cars (6 unusual cars) all insured as "regular" cars (most with very low mileage expectations) but recently moved two (Ford GT and NSX) to agreed value with American Modern Property and Casualty Insurance Company
That’s a new one to me. Thanks TomCat!
Beside the mentioned American Modern Property and Casualty Insurance Company, are there any other companies to put on my list? When Hagerty told they had no plans that set a fixed minimum (no matter the nomenclature) i assumed that these policies did not exist. My street rod friends have also been complaining about this for a very long time (?) I will certainly call these folks, although i'm only paying Cinncinati $321 a year for my NSX full coverage. It is a "low" mileage policy, but there is no mileage stated so it's really not. Again Cinn has not been taking new "two seater" folks for many years now so don't bother calling. Thanks for the corrections!
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