Extras
Once you find a program or two offering Agreed Value for physical damage coverage, compare the extra coverages. In addition to the car's Agreed Value, a few programs allow you to schedule special items such as original Rudge wheels, Nardi steering wheels, original matching luggage, special stereo equipment, etc. Many programs only allow you to drive 2,500 miles annually, but some offer different mileage plans up to 5,000 miles a year, as well as different physical damage deductibles. Some have warranties and restrictions allowing you to drive the car only to special events and car club events. Read the application carefully. Ask your agent about policy warranties and restrictions before you apply. Each program is a little different. Find one suitable for your driving needs.
Claims
The most common types of claims are not from total wrecks or theft. Most claims require you to take your the car to a shop for repairs. Will your insurance company allow you to have your car repaired by a qualified repair shop of your choice that charges more money than a less qualified shop? They should.
Will your insurance company pay more for the repair shop to use OEM parts if available? Many large insurance companies have been sued and lost enormous law suits because they failed to repair damaged cars with original parts. If available, make sure your car is repaired using OEM parts. Insurance company claims practices vary widely. Having an Agreed Value policy, an agent with claims authority, and an insurance company that understands the insurance risk is of paramount importance.
If your favorite car is stolen or totaled, you will know in advance how much you will receive.
Obtaining A Collector Car Policy
Many collector car programs will require you to have at least one other car in your name for everyday use. Be sure the coverage limits for both liability and uninsured/underinsured motorists' coverages provided by the auto policy covering your everyday car(s) match the same coverage limits provided by your Collector Car policy. The medical payments limits may vary depending on what the insurance company's filings offer.
A few unethical insurance agents will tell you not to obtain a separate collector car policy because their auto policy or personal umbrella/excess policy will not allow it. This is rarely true.
There are two key provisions these policies may require of a collector car policy:
1. The limits of liability coverage provided by the Collector Car policy must be the same or higher than those provided by the everyday auto policy.
2. The insurance company issuing the policy must be "A" rated.
I have yet to see an auto or umbrella/excess policy requiring anyone to insure all of their automobiles with one insurance company. If necessary, ask the agent to show you where their policy states you cannot secure a separate auto insurance policy for your Collector Car. Don't hold your breath.
Conclusion
Obtain an Agreed Value Collector Car policy through a reputable insurance agent or broker who understands the collectible automobile business. You won't lose any sleep over how a future claim will get settled. Your agent should have a solid relationship with the insurance company underwriting the Collector Car policies. A few agents even have claims authority to help the insurance company settle claims quickly to your complete satisfaction.
Better agents are actively involved in the collectible car hobby. Many participate in various car clubs' activities. Does your agent have any long-term commitments to any car clubs or car manufacturers?
Why settle for less? If your current insurance agent cannot offer you a Collector Car insurance policy with an Agreed Value form, find a new agent. Read your policy carefully and shop around. Spend time comparing all aspects of an insurance policy-not just its price-and make sure the Collector Car policy suits your driving needs.Ed. - Holly Bromberg is the President of Leland-West Insurance Brokers.