Q: Hi Jill - I have a 1957 Chevy that I drove to the 25th National Convention in Orlando in 1999. I plan to drive to Orlando again. My question is that most Insurance companies don't allow more than 2500 miles on your car a year. My trip was 2350 miles including the driving I did in Florida. Does your company allow for trips that are club sponsored? If I drive down again that means that I can't drive but 150 miles the rest of the year. I live in Pennsylvania and really enjoyed the trip. Don

A: Hi Don - American Collectors Insurance has a 5,000 mile tier available in order to accommodate collectors like yourself who want to take a special car show related trip in their collector vehicle. Of course, because there is additional exposure on our end, the premium for the 5,000 mile tier is slightly higher than our regular 2,500 mile tier. (The premium is roughly 30% more). If you'd like to receive a quote for the 5,000 mile tier, please contact our customer service department at 1-800-360-2277.

Q: I am in the process of restoring a 1930 Model A Ford. It is in pieces with the chassis and drive train at home and the body and many new parts at a body shop being worked on.

What I need now is comprehensive fire and theft coverage with full coverage in a year of so. $12000 should cover it for now with $15000 or so when completely done.

Can you provide this coverage for me and what would the annual cost be?

A:  While I can quote you on comprehensive coverage for your 1930 Model A, we would not be able to consider insuring the vehicle until all of the components are in your care, custody & control and in your garage. Full comprehensive coverage with an Agreed Value of $12,000 with a $0 deductible
would be $42 annually. At a value of $15,000 the premium would increase to $52.50 annually.

If you would like more information about American Collectors Insurance,please feel free to contact our customer service department at 1-800-360-2277 or visit us on the web at www.AmericanCollectors.com.

Q:  I'm in the process of restoring a 50 Pontiac. Surprisingly, it's in good condition. 100% original and all intact. I've been having mechanical work done and will soon begin the body and interior. Obviously, some of this work requires the car to be taken to a shop. I can't get the title in my name without showing proof of insurance on the car. Apparently, all insurers want a picture.

When I finish the value will be $12,000 (even though I'll have more than that in it [sentimental reasons]. I can take a picture, but what they'll see is a car with oxidized paint. However, not a dent to be found. Would this picture raise eyebrows when I'm insuring it for $12,000? Do I just go ahead and insure for the full amount anyway, knowing it will be a few months before it reached that value?

So, what I need is insurance so I can take it to the shop. This car will not be driven, except for local car shows. Believe it or not, I intend to install spotlights in my garage and just look at it. My friends think I'm nuts.

A:  First of all, if you are nuts then we have thousands of nutty customers! Nothing that you are doing isn't being done by a lot of other enthusiasts, so let your friends laugh! They just don't understand...

Regarding insurance for the '50 Pontiac - photos aren't really a big problem, because you can explain what's going on to us, but the car does need to be in your "care, custody & control" for us to be able to insure it. If the car is in the shop (or will be in the shop) for a short period of time then it shouldn't pose a problem, but if it will be in the shop and out of your "care, custody & control" for an extended period of time, then we're not going to be able to help until you are in full possession of the vehicle.

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.

Q:  Jill, where does a person get adequate coverage on a collector car valued at $25,000 and driven daily 6000 miles a year? Frank

A:   Hi Frank - Since your classic car is a daily driver, you're not going to qualify for "collector" car insurance, which limits driving to pleasure and hobby use only. My suggestion would be to contact (or have your agent contact) a "regular" car insurer that offers "stated amount" insurance. A stated amount policy states the value of the vehicle on the declarations page of the policy, and in the event of total loss, the insurer is obliged to pay up to the amount stated. Thoroughly document your vehicle & keep good records in the event you ever do have a claim. You're going to pay more for this kind of insurance, but the only way to pay less would be to agree to restrict your usage & use a different vehicle for everyday.

Q:  Jill, I have a 1964 Corvair Convertible, which I use only on weekend cruises in the summer/fall, if at all. The problem is that I live in New York City (Manhattan) and do not have, nor need, another "regular" car. I take the subway/bus/cabs/my feet everywhere, including work. I can't seem to find a collectible car insurance to cover this and regular car insurance companies don't seem to have coverage or charge more than the value of the car. Do you have any suggestions short of selling the car? Thanks, Jason R.

A:   Hi Jason - Don't sell the car! However, in your present situation, I don't think you're going to have much luck with collector car insurers. They generally require as many "regular use" vehicles as there are licensed drivers in the household. The underwriting logic is that otherwise, the collector vehicle is in jeopardy of being used as a "regular" car, and the low "collector" rates just don't support that kind of exposure. I know this may not apply to your situation, but classic car agencies also have contract arrangements with their underwriters that prohibit them from accepting risks which are outside of specified underwriting rules. As I see it you have 2 options: 1) buy another car & move to Jersey (hey, it's not so bad here!), or 2) contact a "regular" car insurer that offers "stated amount" insurance (e.g., State Farm). You will pay more through a regular insurer, but at least the value of the car will be protected up to the stated amount.

Q:  Jill, I have 6 Classic Cars currently from 1955 to 1972 but most (4) are from the 1960s. I am 55 years old. It has been decades since I was involved in a wreck. Furthermore, my driving record would be difficult to beat. I have had my car insurance for many decades with State Farm and my "Classic" cars are also covered by State Farm at a fairly decent rate. Mine are currently only "drivers" so I don't see the need for anything other than for "liability" (and the Georgia-required 'no-fault' coverage). When I get what I "really" desire (a SS with A/C!), it will be covered fully. While I have only ever sold ONE of my Classics, I do desire to continue to purchase as well as sell and perhaps even exchange. Each time I purchase another Classic, TWO trips are usually required to State Farm (which has moved and is about 20 minutes from me now). I usually get the "binder" first thing so I can get the tag (and sometimes drive them home). For some unknown reason, State Farm "requires" a picture (even without full coverage!). I once put off going for over a week and was sent a "regular" policy and bill for the additional premium!!!!! Needless to say, I got right over there!!! It would be SO nice to find an Insurance Company that would simply let me "CALL" in the VIN number and perhaps then FAX me a binder. Would this be possible with your company? Also let me know about prices. Thanks, Ed Brown

A:  Hi Ed - Even if your classic cars are currently in less than "show quality" condition, you should consider pursuing full coverage through a classic car insurer. I'm pretty sure you'd pay less for full coverage through a specialty insurer than for "liability only" through a regular insurer. Of course, a specialty insurer is going to require you to garage the vehicles and use the cars for pleasure/hobby only, so if that doesn't work for you, then keep the cars where they are! As to adding cars to your policy with minimal fuss, I can only speak for American Collectors Insurance. Our policy provides automatic, 30-day coverage for vehicles that are added to a collection during the policy term (values up to $25,000). Within that 30-day window, policyholders need to inform us of their purchase. We endorse the policy and send a bill with a request for photos (which should support the requested vehicle value). If you'd like to get a quote from American Collectors, please call 1 (800) 360-2277.

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.

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!

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.

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 drivable? 

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.

Q:  I get a multi-vehicle discount by insuring my collector vehicle with my everyday cars. Why do I need collector vehicle insurance?

A:  Even "discounted" standard auto rates are much higher than collector rates particularly if you own an antique (i.e., a vehicle that is at least 25 years old). Cost savings aside, the benefit of collector vehicle insurance is this: standard auto insurance provides ACV (Actual Cash Value) physical damage coverage, which the industry defines as "replacement cost minus depreciation." American Collectors Insurance provides Agreed Value physical damage coverage, which GUARANTEES the FULL INSURED VALUE of your collector vehicle in the event of total loss, with NO DEPRECIATION. In other words, if you have a '65 Mustang worth $12,000 and the car is destroyed in a fire, a standard auto insurer will pay Blue Book value (read: next to nothing) for your "old Ford." An American Collectors policy, on the other hand, will pay (at least) $12,000 as in most states there is $0 deductible for non-modified vehicles. Additionally, American Collectors protects vehicle value (at no extra charge) with "Inflation Guard," which automatically increases your vehicle's value by 2% every three months. So if the loss described above occurred in the 3rd quarter, you would actually receive a check for $12,720.

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!

Q:  I heard that if I leave my collector vehicle "unattended" and have a loss, my claim won't get paid!

A:  Speaking for American Collectors - No way! Your claim would be paid. The circumstances of the claim, however, and your adherence to our usage requirements, would be reviewed. If you left your collector car unattended for 6 hours in a busy mall parking lot while you were doing your Christmas shopping, for example, we would conclude that you were abusing the program (using your collector vehicle for "regular" use) and non-renew your policy. On the other hand, if the claim occurred when you stopped for a burger on your way home from a weekend drive or a car show...well, that's what you have insurance for, isn't it?!

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.

Please contact our customer service department at 1-800-360-2277 to request a policy application & obtain a rate quote. As a suggestion, you may want to print & attach this email to your policy application so you don't have to re-explain your situation on the app. Note that you'll also need to send us updated photos once the restoration is complete. I hope you enjoy your car, it certainly sounds like you will!

Still Have Questions?  Send Jill Your Questions