"Ask
Jill"
Tips
On Insuring Your Collector Vehicle.
American Collectors Insurance
1 (800) 360-2277
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Jill Bookman is a licensed
agent and the Director of Marketing for American Collectors
Insurance, a leading national specialty provider of collector
vehicle insurance. If you have other questions that are not
covered in our list of frequently asked questions, please your questions today.
American Collectors
Insurance is located in Cherry Hill, NJ and can be
reached M-F from 8:30-4:30 ET at 1 (800) 360-2277. Visit
them online at www.AmericanCollectors.com.
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| Q. |
Jill, we are having a '34 Coupe
built professionally buy a reliable restorer. Nothing has been spared.
When completed it will look just like an original, although it will be
powered by a 350 small block Chevrolet and have automatic transmission,
Air, PS, PB, Electric Windows etc. My question is, where do you get the
best insurance coverage for a kit car? Thanks, Shirley |
| A. |
Hi Shirley - Sounds like we're talking about a
professionally built street rod, here, not really a kit car. Sometimes
it can be tricky to insure a kit car because it is difficult for an
agent to assess the ability (or inability) of the "home
mechanic." However, in your case where the car has been
professionally built, you'll want to get quotes for street rod
insurance. There are several national agencies (American Collectors
included) that offer very competitive street rod rates. |
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| Q. |
Why is collector car insurance so inexpensive relative to
the cost of standard auto insurance? |
| A. |
Generally speaking, since collector vehicles are driven
on a limited basis & spend most of their time (let's face it) in the
garage, the risk of loss to collector vehicles is much lower than the
risk posed to insurers by regularly-driven vehicles. Therefore,
specialty insurance providers - such as American Collectors Insurance -
are able to offer collector vehicle rates that are much, much lower than
standard auto insurance rates. |
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| Q. |
I am getting ready to purchase my first hot rod. All the
insurance companies I've talked to require that the vehicle be housed in
a garage. Unfortunately where I live I only have a carport. I live in a
gated community that is patroled by security 24 hrs a day. Are you aware
of any insurance companies that do not require a garage? Mike J. |
| A. |
Hi Mike - American Collectors' garage requirement is not
only to protect the collector car against theft (which it appears your
current situation will do) but also against Mother Nature. I'm afraid a
carport won't "cut the mustard" with the collector programs
I'm familiar with (although you could ask your agent to do some homework
for you). If you have access to a fully enclosed, locked garage
elsewhere and would be willing to keep your hot rod stored there, that
may be a way to get around your carport problem. FYI, collector vehicle
insurance is generally very affordable because of the requirements &
restrictions placed on using & storing the vehicle. Good luck! |
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| Q. |
I am in the process of buying a 1927 Ford Model T. It
will be shipped from Maine to me in California. It has the serial number
that it came with, not a VIN number. Can I get it insured without a VIN
Number? Bruce |
| A. |
Dear Bruce - Actually "serial number" and
"vehicle identification number" (VIN) are the same thing. With
the really old cars (like the one you're buying), the number is usually
very short (about 7 digits). You'll need this number to register the
vehicle in California (which you must do if you intend on driving it on
any public road). If this car will not be driven, you can insure the car
itself (comprehensive insurance covers fire & theft) without
registering it. |
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| Q. |
How do I go about insuring an "under
construction" street rod. As you can imagine, the parts and pieces
represent a substantial investment, but as "labor" is added to
the equation, the value increases. I like to think this happens on a
weekly basis, but realistically, monthly is more like it. How is a
situation like this handled, if it's handled at all. And what's
recommended in terms of coverage, seeing as how the vehicle isn't
currently driveable? |
| A. |
A vehicle which is not operable/fully assembled may be
insured for "comprehensive" coverage only, which will protect
your investment in the event of fire, theft, etc. American Collectors'
policy offers "Agreed Value" coverage in most states meaning
that the full insured amount of your collector vehicle is guaranteed in
the event of total loss.
All the components of your project should be in your "care, custody
& control" (i.e., in your garage and not scattered about at
different vendor shops). You do not describe your street rod but the
question of collector vehicle value is never a black & white issue
anyway; it can be very subjective (e.g., type of vehicle, condition,
location, etc.). You should try to determine a value that would fairly
indemnify you for a "total loss" to the car in its present
state. You can request value increases as your "construction
project" progresses; once the car is operable, you'll want to add
liability coverage, etc. to register & drive it. |
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| Q. |
What are the limitations of collector vehicle insurance
coverage - what's the "catch? |
| A. |
To keep "collector" rates low, American
Collectors places certain usage restrictions on insured vehicles, such
as: cannot be used for everyday driving; cannot be driven more than
2,500 miles per year; must be garage-kept. Very few collectors find
these limitations to be a hindrance; in fact, most claim it would be
difficult to put 2,500 miles/year on their collector vehicles and OF
COURSE they keep their babies in a garage! |
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| Q. |
Do I need to get my car appraised or get "QQ"
[historic] plates to qualify for American Collectors Insurance? |
| A. |
No. The only situation where we might request an
appraisal or bill of sale is for a very high value and/or extremely rare
vehicle. Our market can accommodate any vehicle that's at least 15 years
old (in Massachusetts cars must be at least 25 years old) and used
strictly on a "collector" basis (i.e., driven less than 2500
miles/year for pleasure driving, car shows & other hobby-related
activities). You'll need to have a good idea of the value of your
vehicle because that will in large measure determine your annual
premium. We will question values that seem too high/low before binding
coverage. |
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