Quandary about insurance coverage

[TBird1stLuv]

I currently have full coverage with Sate Farm. I have noticed a lot of TBirds showing up as salvage vehicles because insurance totals the car out.

I am aware that our cars are not old enough to qualify as classic/vintage. However, most insurances go by Kelley blue book or Nada for reimbursement.

Since parts are somewhat scarce and not always readily available, a body shop after an accident could charge the insurance storage fees while looking for parts. I think that there is a general tendency to total the car out than fix it.

I asked our agent and he said that an 800 bumper on most newer cars could cost considerably more for our cars. So that is why most cars are totaled. I asked about buy back and you can but now you have to deal with a salvage title which depreciates the car.

His recommendation was to have the car appraised and take lots of pictures. He could then argue for more money but no guarantees. Also, he mentioned that there is a collector car insurance (costs more...like a grand a year ) to reimburse at appraisal value.

I didn't make a huge investment to purchase but I have put some cash into the car and would prefer to have it fixed.

So anyone else worried about losing out in an accident and what are you guys doing for insurance coverage?

[Gobird]

I have Grundy Insurance , no worries here.. They will replace the car at full value.

[TBird1stLuv]

Did you get an appraisal? How much does this kind of insurance cost per year?

[wcoates]

Haggerty also has a very reasonable declared valve policy that has no mileage limitation. I recently received an email from them basically you could keep the car if you wished at no reduction in paid out value. Seems to good to be true. They obviously don't want to be bothered with disposal of the carcass. They obviously have that built into their business model and pricing structure. You repair it without a title change and I wouldn't think a salvage title is an issue. Am I missing something here?

[philj]

Since an actual sale does not happen on a buy back there is no ownership change nor title involvement. The insurance company simply deducts their expected salvage return
from the price they pay you for your car.

[MikeB6]

I like Hagerty and their declared value position. My '04 with 34,500 miles on it is covered for $18,500. I was unaware of the opportunity to keep the car if it is declared totaled, but sounds interesting. Hope that never happens, but that's what insurance should look like for a collector car, IMHO.

[philsbird]

I like Hagerty and their declared value position. My '04 with 34,500 miles on it is covered for $18,500. I was unaware of the opportunity to keep the car if it is declared totaled, but sounds interesting. Hope that never happens, but that's what insurance should look like for a collector car, IMHO.

Just this week got a quote from Hagerty on my 04 PCR with 33,000 miles. With agreed value at $18,500, premium is $600/yr. I do believe there is concern with mileage allowed though. Check it for yourself with their online quote application. Takes 5 minutes.

[Mujiir]

I went with Hagerty after making calls to both Hagerty and Grundy. They will accept your estimate of value if it's within reason. I got $18,000. replacement value on my 2005 with 44,000 miles on it without a problem. It came out to about $450ish per year. Mileage is 5,000 per year.

[BirdsAndBugs]

Lynne, you're a little misinformed. For most, collector car insurance purchased through companies like Grundy or Hagerty will be less than what you pay with your regular carrier such as State Farm. For example, I have my 03 and 05 Thunderbirds each insured for a stated value of $20,000 each. Costs me a little over $500 a year for both cars. The reason is that if it is a collector car, you're not using it for daily transportation. Each driver in your household must have another vehicle for daily transportation. So if your new Thunderbird is your daily driver, collector insurance may not work for you.

Both companies will often ask for a photo or two of the vehicle but no formal appraisal is required.

[TBird1stLuv]

Greg thank you for this information. I do like to drive my TBird quite a bit but not during winter/ bad weather months. My current comprehensive policy costs me a little over $500/year with a 250 dollar deductible. It is good to know that even a collector car policy will not cost me a $1,000.00 year. May I ask what company you work with and approximately how many miles does the policy limit you to? No formal appraisal??? I can do that! All drivers in household have their own vehicle.

[TBird1stLuv]

I am so happy I found this site to bounce things off others with more wisdom them myself. Thanks for posting everyone...

[BirdsAndBugs]

Greg thank you for this information. I do like to drive my TBird quite a bit but not during winter/ bad weather months. My current comprehensive policy costs me a little over $500/year with a 250 dollar deductible. It is good to know that even a collector car policy will not cost me a $1,000.00 year. May I ask what company you work with and approximately how many miles does the policy limit you to? No formal appraisal??? I can do that! All drivers in household have their own vehicle.

I'll have to look at my Grundy policy when I get home this evening. I generally drive my Thunderbirds less than 2,000 miles a year as I use them primarily on weekends and for road trips. I can say they've never asked me how many miles I've driven since I got the policy a few years ago, but I generally treat these vehicles just as I have any other classic vehicle I've owned in the past. It saved me quite a bit from The Hartford where I have our 2 daily drivers insured. One of the biggest advantages is stated value coverage. I have my cars insured for $20,000 each. So if something happened to them, I should be able to buy a very nice low mileage replacement should I choose to do so. With traditional insurance companies like State Farm, they're going to use Kelly Blue Book or National Auto Dealers Association guides to establish value. Probably fine for a daily driver that sees normal use and wear, but may not fully compensate you fully for the value of your car especially if it is a well cared for low mileage collector/specialty vehicle.

The cost you're paying sounds pretty decent with State Farm. I guess to the real question is do you intend to use it frequently for regular transportation? If the answer is yes, then maybe it is best just to continue coverage with State Farm.

Another question to ask yourself, if the car was totaled, would my insurance policy compensate me for what you have invested in the car? If not, then a stated value policy may make some sense.

[TBird1stLuv]

Greg, you are absolutely correct and I really appreciate your input. Last year, I put a little over 3,000 miles on it and that included driving it home when I purchased the car. I will not be using it as a daily driver. State Farm was talking pathetic KBB values which would not even cover what I paid for the car; not to mention the money I invested. Decided to go with Hagerty after an online application and quote. Very easy to work with and answered all my questions.

Mujiir : Thank you as well. They are looking for about 3200 miles a year but claimed they are not the odometer police. When i pushed, they also said 5000 miles as a ceiling but prefer you stay under that annually. They seem reasonable enough.

[TBird1stLuv]

Has anyone actually dealt with a loss on one of their vehicles? If so, what was your experience?? Was it a collector insurance?

[wcoates]

Just spoke with Hagerty who will sent info by e-mail and I will post upon receipt.

Program is called "Cherished salvage". Car is totaled at agreed upon value and you get to keep the car at no payout reduction. Can it be repaired at a reasonable cost and make a few $$$$$. Guess jury is out on that one. I'm guessing that a totaled car hauled to your garage has many parts that could be sold to us who are constantly looking.

Gentleman did not have a % number of policy increase but thought a $20,000 agreed upon value policy would be $20 or less for the year.