[DML] Re: insurance questions - Setting the record straight

["ryanpwright" <yahoo1@xxxxxxxxxxxxxx>]

James,

>> Buy Collector car insurance, it's cheaper and better.

Cheaper, but is it really better for those of us who drive our cars often?

Example: I'm with State Farm. Full coverage, 50/100/10, $500 collision
$100 comprehensive deductibles. $450 / 6 months. I just checked with
Hagerty and it's less than half: $400 / year. No milage restrictions
but they said you can NOT drive the car to work, or on errands, etc. I
was told that if I file a claim and they find that I drove more than
5,000 miles in the last year they will want some pretty good evidence
as to why I was driving it so much. If someone hits the car in your
work parking lot, they won't pay, etc. 

That just doesn't work. I didn't buy a DeLorean to take it out every
third Sunday, and a few times per year for club events. I drive mine
to work, to the grocery store, etc. I'll probably put 10k miles on it
per year. And why not? I bought it to drive. I don't have fun looking
at it in the garage (well, maybe just a little ;) ). 

Does anyone offer reasonably priced collector car insurance with
agreed upon values for people like me? I've looked but I can't find it.

-Ryan

--- In dmcnews@xxxxxxxxxxxxxxx, "James LaLonde" <deloreandmcxii@xxxx>
wrote:
> Okay first off, both Haggerty and Condon and Skelly, along with 
> others such as Grundy, and AON Collector Car are specialty companies 
> that insure only special interest vehicle (though they are 
> underwriten by other big-name companies). Very few Collector car (or 
> Agreed Value) policies use ANY rating factors other than the cost to 
> replace the car. Age, Sex, Driving history, and credit have no 
> bearing on these types of policy's pricing... only on whether or not 
> you qualify for the program.
> 
> The Insurance industry on whole as had a rough decade. During the 
> recent Economic boom of the 90s there were quite a few claims 
> happening, that weren't being rated for initially (they can't change 
> rates mid-term), and the industry was in a soft period in the 
> underwriting cycle. Like the stock market, the insurance industry 
> sees fluctuation in price and risk appetite.
> Right now, we're in a hard cycle. Underwriters are very strict, and 
> prices very high. Today that is mostly due to the complete lack of 
> stable investment income. If Insurer cannot rely on the investment 
> your premiums normally provide they have to rely on collecting more 
> premium.
> Honestly, 600-700 buck PER YEAR is a phenomenal rate for a sub-25yr 
> old driver.
> 
> I might recommend you raise your COLLISION deductible. Comprehensive 
> has very little impact on prices in most cases.
> 
> Despite what you have personally experienced - insurance companies 
> are not baiting you with low price to raise your rates later on. Nor 
> are they perfunctorily raising rates every year. All but a few states 
> have laws required rate changes to be filed and approved with the 
> state PRIOR to use, some states even have MANDITORY RATES. The 
> Insurance commisioner in any given state approves only state wide 
> changes. Your rate as a 2 yr old customer with an insurance company 
> is the same as any identically classed (age, location, credit, type 
> of car, etcc.) new customer - to rate two identically classed 
> cusotmers differently is Unfair Discrimation... which is illegal in 
> all 50 states.
> 
> Despite many misconceptions by the public, the insurance industry is 
> not out to get you. The rates they charge are the rates that are 
> actuarily calculated that they NEED to may for thier expences running 
> a business, YOUR claims, and a reasonable profit.
> 
> For the DeLorean, the best place you can be is any of the afore 
> mentioned collector car companies. I like AON because they have no 
> age requirement- just a driving history requirement and NO mileage 
> limitations. 
> 100/300/100 coverages, in a no-fault state (MI), with 500 ded both 
> comp and coll for a 21 yr old dr, 18 agreed value = $315 / yr
> INCLUDING the Michigan state insurance fee of $100
> 
> For as many misconceptions the public has about the insurance 
> industry - the average insurance agent know NOTHING about the 
> DeLorean. I can't stress enough that you NEED TO READ YOUR POLICY. 
> Stated Amount is NOT Agreed value. If you're with a normal insurance 
> company the payout you'll get on the DeLorean in the event of a total 
> loss IS IN NO WAY GUARENTEED!!! Buy Collector car insurance, it's 
> cheaper and better.
> 
> Feel free to email me with questions. I'm a huge insurance dork. :P
> -James LaLonde 004009




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