Not saying it because I was there, but I love this photo of JG.
[Editor's Note: This article was first published in our August 2016 issue. Some information and prices may be different, and sadly, JG's mullet is no more.]
Car enthusiasts will talk about anything automotive. Intake, exhaust, ECU tuning, track days, dealerships, car shows and race tires are all fair game.
Insurance, though? No way.
Asking an enthusiast about insurance is like asking an ice cream man about power outages. We usually believe that car insurance is an unavoidable evil that only serves to cost you money on a good day, and lowball you like a Craigslist buyer when something bad happens to your car.
Believe it or not, it doesn’t have to be this way. There are special insurance policies just for car enthusiasts, and they cover more while costing less. Yes, you read that correctly: This increased coverage often comes with lower premiums.
Before you ask, no, these companies aren’t just looking for Model T owners or senior citizens who no longer drive. They’re looking for you, and here’s why.
1. CLASSIC CARS ARE NEWER THAN EVER
Guess what: Your 1990 Miata is 26 years old. Your E30 BMW? It’s probably 30. Fox-body Mustang? It might be pushing 40. The cars we know and love aren’t getting any younger. And while we aren’t going to lie to you and say that a Subaru WRX is appropriate for a specialty policy, the reality is that lots of the cars we love are.
2. YOU CARE MORE THAN MOST PEOPLE
If you’re reading this magazine, and especially this article, then you probably care about your car more than the average driver does. You probably park out in the boonies to avoid dings. You probably keep your car in tip-top shape. Heck, you can probably list every single blemish (and your plan for fixing it) on command. Guess what? These things make you a lower risk, and insurance companies love low risks.
3. YOU HAVE A DIFFERENT DAILY DRIVER
One of the biggest predictors of risk is miles driven, and most people with an older project car won’t be parking it in the work parking lot every day. As long as you have a different car for daily use, collector car insurance companies will be fine insuring your weekend toy. That doesn’t mean you can never drive it-occasional drives to work, on a date, or even a fun road trip are fine. Just don’t use it to make sales calls every day.
4. GARAGES ARE AWESOME
Owning a project car probably means owning a garage. That’s the holy grail for insurance companies, as garages protect vehicles from many common risks. You’ll be hard pressed to find a collector insurance company that doesn’t specify some type of covered storage in their policies, but odds are you already keep your car in a dry place without getting any discount for it.
5. RACE CARS AREN’T THAT RISKY
Odds are good that your current insurance company hates racing. And why wouldn’t it-race cars just crash, right? Actually, they don’t. Since they spend 99 percent of their time in a garage or on a trailer, track cars lead relatively low-risk existences. That’s why almost every specialty insurer loves them. True, very few companies will cover a car while it’s on track, but they’ll insure it the rest of the time for cheap.
We know what you’re thinking: “Cool, so they’ll cover me. But what’s the point of switching?” Choosing an insurer with an awareness of the enthusiast scene comes with several perks.
1. A VALUATION YOU CAN AGREE ON
There’s a type of policy called an agreed value policy. It’s what 99 percent of specialty insurers write, and it leaves the insured fairly covered.
Basically, when you sign up, you’ll tell the company what you think your car is worth. They’ll double-check that you’re in the ballpark, then write that number on top of your policy. If your car is ever totaled, you’ll get a check for that amount. No haggling, no back and forth, just a check for the value of your car. Anybody who’s ever had to convince a traditional insurance company that their BMW M3 isn’t just a normal 3 Series will see the value here.
2. FAIR REPAIRS
Specialty insurers are usually much, much better at fixing your car than the average company. Most educate their claims representatives about cars. That may not sound like a big deal-they’re going to write a check either way, right?
Actually, it can be a huge help. Try convincing the average agent that your Toyota MR2 is mid-engined, so it really does need a new intake after getting rear-ended. Some specialty companies will even let you fix your car yourself, and pay you a fair hourly wage while you’re doing so. They’ll even cover the cost of any spare parts you use from your stockpile.
3. BONUS BENEFITS AND CAR BABYING
Most specialty insurance policies come with additional benefits, like coverage for spare parts and tools, roadside assistance that guarantees a flatbed with soft straps, or a parts concierge service that will help you find that one-year-only trim piece, even if you didn’t get in an accident.
4. THAT BOTTOM LINE
Finally, these specialty policies are way, way less expensive. Because specialty insurers only insure the cream of the crop, you don’t have to pay for that one guy who backs his Camry into a mailbox every week.
Though every driver, car and ZIP code combination will receive a different rate, we quoted a 32-year-old male who lives in Raleigh, North Carolina, and has a 1985 Toyota MR2 that he thinks is worth $5000. For an agreed value plan with high limits, no deductible, spare parts coverage, and 15 miles of roadside assistance, our hypothetical guy would pay just $148.40 per year. We then quoted the same scenario with a major insurer and got a yearly rate of $1004.78 for less coverage.
Ready to sign on with a specialty insurance provider? Great, just give your company of choice a call and start talking.
1. TALK TO A PERSON
Notice that we said to “call” a company, not “punch numbers into a website.” Most of the cars in this magazine are on the line between classic and just plain old, and the decision to insure you may not be obvious. If that’s the case, talking about your ownership style can help your cause.
2. TALK YOURSELF UP
Make sure you clearly communicate that you use your car like the classic that it is, not just like an old beater. It can also help to explain how you’ve restored it, are constantly working on it, and love it like a child. And be nice and friendly, too-insurance agents are people just like you.
3. FIND YOUR BEST FIT
Can’t get coverage through one company? Don’t be afraid to call around. Some companies prefer different types of cars and uses, so finding a good fit may take a few tries. A big agency may be able to help, too, as some could have arrangements with a specialty company or provide similar plans themselves.
Chubb Collector Car
chubbcollectorcar.com
(866) 227-9648
Classic Collectors
classiccollectors.com
(800) 225-8930
Grundy Worldwide
grundyworldwide.com
(866) 6-GRUNDY
Hagerty
hagerty.com
(877) 922-9701
Heacock Classic
heacockclassic.com
(800)678-5173
J.C. Taylor Insurance
jctaylor.com
(800) 345-8290
K&K Insurance
kandkinsurance.com
(800)348-1839
Leland West
lelandwest.com
(800) 237-4722
OnTracklnsurance.com
ontrackinsurance.com
(866) 638-0505
Not saying it because I was there, but I love this photo of JG.
Is that what he was like when you found him?
Tom Suddard wrote: Is that what he was like when you found him?
Actually, a bit of prep and planning went into that image. It's not like JG can grow a mullet overnight.
And for the record, JG found us.
Margie
Marjorie Suddard wrote: And for the record, JG was left in our car after a trip to the Piggly Wiggly. Margie
FTFY
David S. Wallens wrote: It's not like JG can grow a mullet overnight.
Some say...
I'm happy to say, many,if not most, of the rules for specialty car insurance people tend to believe and worry about are false! The bottom line and, most importantly, you must prove this isn't your daily driver!
In my case a 2002 NB Miata LS and a 1986 MB 560SL are both insured and equally eligible for specialty insurance. Why?
First off, they're the third or fourth cars out of our garage in a two car driver family!
Second, since we're retired, neither of us need either of them or any other ride to commute.
Third, as mentioned, all our rides are housed in a locked garage!
Yes, in this case I also receive a discount based upon my statement I won't drive either specialty car over 6,000 miles a year. However, there is nothing to say I can't go shopping or traveling as long as I don't drive more than my 6,000 mile per car limit. And since I have two other cars as my daily drivers, that has zero chance of happening anyway!
Need to look into that for my Miata. Its main purpose is an autocross car, I drive it to and from local events and rarely other time. It's not a daily, just one of my extras. Have specialty insurance on my 70 Opel GT and I seem to drive it more than the Miata. Opel gets driven about 3 times a month and the Miata gets driven once or twice a month.
wlkelley3 wrote: Need to look into that for my Miata. Its main purpose is an autocross car, I drive it to and from local events and rarely other time. It's not a daily, just one of my extras. Have specialty insurance on my 70 Opel GT and I seem to drive it more than the Miata. Opel gets driven about 3 times a month and the Miata gets driven once or twice a month.
Good idea! BTW: Point #1 is this article is among those incorrect things many believe about Specialty insurance!! If you provide documentation, inspections, etc. to prove it's value your ride can and will be insured by a specialty insurance group even though it is much less than the commonly believed standard of 25 years old.
As I said, my Miata is a 2002 now probably considered 15 years old, and it has exactly the same coverage and is insured at the same rate per thousand dollars of stated value as the stated value of the Merc.
Just because your ride isn't 25 years old doesn't mean you can't get Specialty Car Insurance. It just means you have have to dig a little deeper, provide more justification, and allow your ride to be inspected to justify your "stated value!" That insurance is out there! You probably already have done what is needed to be done to justify your car's value. Now you just need to go that extra mile and prove it!
Believe me, the insurance cost savings and insurance value in case of a "total" more than justify your efforts!!
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