Insurance

[Mike Drew]

I'm with Heacock also. [snip] Thankfully (Fingers, eyes and toes crossed) I've not needed them. I've heard that the fine print really comes into focus when you call on any of them for service though. Visions of steam coming from my ears fills my head thinking of what they would tell me if I claim.

I am unfortunate in that I have had several occasions to file claims with Heacock. My Cobra has a propensity for breaking its windshield (finally rectified), and it got hit to the tune of $8300 while I was standing still in a parking lot (guy in a Pantera backed out of a space without looking and plowed into the nose; there was another car right behind me so I couldn't back up to avoid him).

I'm happy to report that all my claims were handled absolutely effortlessly, and with no aggravation whatsoever from the company. For the small claims, I simply told them my windshield had broken, told them how much the replacement was going to cost, and they just cut me a check on the spot. For the bigger accident, I drove the car to the shop I chose to repair it (Henry's Street Rods in the Sacramento area, they did a GREAT job!), and the adjuster came out and looked at it. He and Henry discussed the damage, came up with a strategy, Henry told him how much it was going to cost, and he agreed without question. A check for $8300 was sent to me, which I duly turned over to Henry when the work was done.

My rates were completely unaffected by any of these claims (three so far, hopefully no more!!!)

So, there are plenty of things you can worry about with GT40 ownership, but if you're with Heacock, your insurance isn't one of them. :thumbsup:

BTW I've heard similar stories from similarly unlucky friends insured with Haggarty....

 

[Cam]

BTW, Just called Grundy, their rates cut in half if the car is registered as a 1985 or earlier. In texas, it'll be hard to convine them my build is a 1985 so my rate went to $1100 for $80k. There were easy to work with too. Oh, they now take credit cards.

 

[Rich Roy]

My wife works for a big nation wide top ten insurance co. I can't even put the key in anything without it being covered first! She went through another carrier (Hartford) through AARP "cause we both slipped past 55 years of age. We have all the usual stuff like bodily injury, $1000.00 deductable, etc etc. Can't remember all the details of $ cause I"am at work now, but got both cars covered with stated values of $70k & $90k each for just a tick over $550.00 each per year, 5,000 miles driven cap each per year. Can drive to work occasionaly. CAV GT40 & Superformance Daytona.

 

[Erich]

This is an interesting thread and comparing the prices is very "entertaining". However, there are some pit falls to be aware of when comparing insurance companies and policies mostly based on prices:

• Scope of the policy document itself: Policies are written differently and what they cover and specifically exclude varies widely. For example, one policy may cover "rodents destroying your vehicle's wiring", while the next one doesn't. There are some more specific items that are in your policy that will effect premiums:
  • Mileage: Annual mileage allowances and the "type of miles" driven will impact premiums. There are no "standard" premium rates based on specific mileages across companies; neither are there specific common definitions among carriers of what type of driving you may be able to do and will be covered while doing so. For example, some policies have "hard" mileage limits, while other policies are "more flexible" with annual mileage, stating a "soft" limit only. In general, and this has been mentioned before, track driving - unless specifically included - is excluded from most policies.
  • Type of vehicle: Premiums will vary depending on how the vehicle is registered. For example a vehicle registered as a 1966 GT40 will most likely get different pricing (even within the same company) than a vehicle registered as a replica, modified or other type of vehicle.
  • Comp and Collision: Premiums will vary based on whether you include comp and collision coverage in your policy. Depending on the company, they may offer policies with various or no deductibles. This is the area where is is very important to understand what type of value, as defined in the policy, is used as the basis for a claim. To summarize, most "regular" car policies use ACV (actual cash value). Collector-car policies typically use "Stated Value" or "Agreed Value" as the basis. I would highly recommend to make sure you understand (or use a resource who does) what type of value basis is used in your policy. I would also recommend to get an appraisal (whether it is required by the insurance company or not) and take your own set of photos.
  • Liability limits and UM/UIM coverage: Just with your "regular" car insurance, liability limits (medical and property) will impact the premiums.
  • "Other bells and whistles": Many companies offer extra "services" as part of the basic policy and as a result offer more comprehensive coverage than other policies. For example, some collector-car policies automatically include towing and roadside assistance. Some may include an "Attendance Requirement" in the policy while others don't.
  • Other policy requirements: You will find the most collector-car policies include specific requirements for garaging the vehicle. Depending on the company, you may have to furnish specific details and photos of your garage/storage location. This is also important when driving your vehicle and stopping somewhere overnight (and parking the vehicle). While one company/policy may cover your vehicle while parked in the hotel parking lot, another one may not.
• Drivers: The number, age and driving records of the vehicle drivers will greatly drive the premiums. In fact, companies will not issue collector-car policies to individuals or households with a specific number or type of traffic violations or accidents in a given period.
• Location: Insurance premiums will vary greatly based on the geographic location of the insured within region, the state and of course from state to state.
• Company discounts: Some companies offer discounts when a client has multiple policies or multiple types of policies, including a collector-car policy.
• Claims handling: Obviously this is key. Many of the "horror-stories" are a result of customers not knowing what their policy covers and what it doesn't cover. So, they may be surprised when they file a claim and don't get the compensation they expected to receive. Of course, in addition, it also requires the company who writes the collector-car policy to understand the collector-car market and for that company to be in a financial position to "properly" take care of their clients' claims.

I think this about summarizes it. I hope this is helpful information.

 

[Jimmy P]

If you look back I posted on 8/25/09 that I'd signed with Heacock and had not had the need to file a claim but feared the worst once I did. Sadly, shortly after that post (I guess I jinxed myself!) I needed to file a claim and as Mike Drew responded I had no issues with Heacock at all. Heacock's adjustor met with the shop I selected and paid the money no questions asked. I did see a slight bump up in my premium but when I made inquiry with them they removed it due to a clerical error on their behalf. I ran into Mr. Heacock himself at the Amelia Island Concour's and told him I appreciated the fact that guys like us have companies like his to go to for good service at a good price. He thanked me. Nice guy very down to earth and certainly a car guy from what I could tell. I'm happy with Heacock.

 

[Will Campbell]

In addition to the traditional kinds of policies, some carriers offer unique ones for different circumstances.

I had a policy with Heacock that was just what I needed for my race car: it was covered for all perils at all times, except for when under its own power.

For me, this was perfect, as I wasn't trying to insure against a loss while racing, but for all other risks. The car was covered in the trailer, while parked at a restaurant coming back from a race, at a shop, while at a car show, even at a race track in the pits- the agent said if the car was parked in the pits, and another race car hit it, the damage would be covered.

This isn't what most GT40 (or SLC) owners want or need, but the point is that there seems to be some flexibility is assuming risk from some of the insurers.

 

[Erich]

In addition to the traditional kinds of policies, some carriers offer unique ones for different circumstances.

I had a policy with Heacock that was just what I needed for my race car: it was covered for all perils at all times, except for when under its own power.

For me, this was perfect, as I wasn't trying to insure against a loss while racing, but for all other risks. The car was covered in the trailer, while parked at a restaurant coming back from a race, at a shop, while at a car show, even at a race track in the pits- the agent said if the car was parked in the pits, and another race car hit it, the damage would be covered.

This isn't what most GT40 (or SLC) owners want or need, but the point is that there seems to be some flexibility is assuming risk from some of the insurers.

The Heacock policy you are referring to is called an "STP policy". It is a very specific policy for owners of race cars and is written to cover very specific needs. As you stated correctly, it covers the race car while in storage, transported by truck or trailer and while it is in the paddock or display area of a show or racing venue. It would not be covered while operating under its own power (driven on the track or into/out of the paddock), except during loading and unloading. STP stands for Storage, Transport and Paddock.

 

[Matt]

Any updates over the past couple years on insurance providers, or is the list of players pretty much the same?

 

[Rich Roy]

Through AARP/Herritage Ins. I have "stated value", $1000.00 deduct, 5,000 mile per year. None daily driver, but can drive to work on non-regular basis for only.....(drum roll)..............$550.00 per year! Both cars covered for this price each, Cav GT40 & Peter Brock Daytona Coupe..................Happy motoring!

 

[Doug S.]

I'm skeptical of insurance companies at the best of times.

That's a good plan! I worked for an insurance company for a while right out of college and I learned very quickly that the policy is important because it LIMITS the responsibility of the insurance company. If you think the insurance company has your best interest in mind, think again. They will use every possible excuse to avoid paying a claim, and when they cannot avoid paying on a claim they will use every creative method imaginable (and many not imaginable, I'm sure) to lower the amount they actually have to pay when a claim is settled.

In the end, the only people the insurance company really cares about is their stockholders.


Cheers from Doug!!

 

[Seymour Snerd]

Through AARP/Herritage Ins................$550.00 per year!............Happy motoring!

Happy indeed! You just saved me about $750/yr (I switched all the cars).

 

[tom pritchett]

After a lot of research since this thread began, I found Rally Insurance. I have an agreed value of the GT40 and my '31 Ford Vicky. They both are valued at $100,000 each and my premium is $850 a year for both. Of course there are mileage limits and no coverage while on a track.

 

[Erich]

That's a good plan! I worked for an insurance company for a while right out of college and I learned very quickly that the policy is important because it LIMITS the responsibility of the insurance company. If you think the insurance company has your best interest in mind, think again. They will use every possible excuse to avoid paying a claim, and when they cannot avoid paying on a claim they will use every creative method imaginable (and many not imaginable, I'm sure) to lower the amount they actually have to pay when a claim is settled.

In the end, the only people the insurance company really cares about is their stockholders.


Cheers from Doug!!

Doug, I work in the insurance industry, and absolutely disagree with you. Your experience may be with the ONE company that you CHOSE to work for some time ago. My experience with the companies I chose to work with (as a representative and/or a customer) is very different from yours. I would advise you to consider throwing out "all companies" or an entire industry, because of your very specific, personal experience with one company. Your experience (as an employee or customer) may have been different had you chosen a "better" company to start with...

 

[Erich]

Through AARP/Herritage Ins. I have "stated value", $1000.00 deduct, 5,000 mile per year. None daily driver, but can drive to work on non-regular basis for only.....(drum roll)..............$550.00 per year! Both cars covered for this price each, Cav GT40 & Peter Brock Daytona Coupe..................Happy motoring!

Rich, while I don't know the details of your policy, there is (generally) a difference between "stated value" and "agreed/guaranteed value".

As an example, if you have a $50K stated value policy and your car disappears you typically MAY get up to $50K for it, potentially LESS, if the determined market or replacement value is less at the time of the loss.

If you have a $50K agreed/guaranteed value policy, you typically get the $50K, regardless of the market/replacement value at the time of loss.

With this in mind, you may want to check with your rep to confirm what exactly will be covered in case of a loss on your specific policy.