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When the Corvette you own is driven only occasionally
for pleasure drives, club events, special excursions, maybe 1,000
or certainly under 5,000 miles a year, not used for business,
etc., it is time to enroll them in a "collector car"
insurance program.
If you are insuring your Corvette under a standard insurance policy,
you should expect problems with claims. Be prepared to deal with
a claims adjuster who doesn't understand why using a repair shop
of your choice or using original parts is extremely important.
Standard auto insurance policies do not guarantee a value for
your car at the time of loss. If you wouldn't take your Corvette
to just any old shop for service, the same is true for its insurance. |
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There are a few specialty insurance brokers who
provide automobile insurance policies designed to cover collectible
automobiles for pleasure driving only. If you qualify, their premiums
are usually a fraction of the cost of a standard insurance policy.
Insurance company underwriting guidelines may include driving
usage, special care for the car (such as how it is garaged), good
driving records, and few if any youthful drivers. A few brokers
market polices nationwide, often including coverage for spare
parts and towing.
Most collectible automobiles have stable values and slowly appreciate
over time. Because the values are stable, an "Agreed Value"
insurance policy should be obtained to protect your collectible
automobiles. Under an "Agreed Value" policy, if your
car is stolen or totaled, you will receive the "Agreed Value"
listed in writing on your auto policy. Ninety-five per cent of
all standard insurance companies do not offer an "Agreed
Value" policy. |
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| This form of coverage is typically provided by standard
auto policies. The insurance company claims adjuster ultimately
decides what your collector car is worth at the time of the loss.
While you may have some input, if you do not agree with the claims
adjuster, the insurance company claims adjuster decides the final
claims settlement. If you do not agree with the claims settlement,
you may have no alternative but to seek legal action, or, if specified
in the policy, arbitration. |
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This form of policy is frequently and easily misunderstood.
It is often used on collector car policies. Most insurance agents
typically represent it as being the same as "Agreed Amount."
It is not! The "Stated Amount" form states the insurance
company will pay the lesser of:
1. The Stated Amount or
2. The cost to repair the covered auto not to exceed the "Stated
Amount" or
3. The "Actual Cash Value"
The "Stated Amount" helps determine the premium cost.
It does not guarantee you a settlement amount that reflects the
value of the car when a loss occurs. The "Actual Cash Value"
language allows the claims adjuster to settle your loss for an
amount less than the "Stated Amount." Most insurance
agents are unaware of this detail. These agents are unaware of
the actual policy language and will insist if your collector car
is stolen or totaled, you will receive the stated value. |
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