State Farm Insurance - LONG (Really long)

[jdsjlv@xxxx]

Dear List:

I live in Connecticut and a few months back I noticed a sign that said that 
State Farm was back in Connecticut and issuing new policies. I decided to 
call and get quotes on two cars, the DeLorean and my first home. I was amazed 
at how great the quotes were and decided to sign on. I have the DeLorean 
insured as a part time use vehicle, with restrictions of 2,500 miles/year. 
All was well until this past Monday...

I received a certified letter in the mail stating that my policy would be 
canceled as of August 29, 2000, and the reason was, and I will quote, "This 
risk is ineligible due to the type of vehicle." I was furious, although I 
knew that I had the bargaining power of a few policies that I was sure they 
didn't want to loose. I immediately called the auto underwriter, who was the 
same person that signed the letter and asked him what the heck was going on. 
He first started by saying that the DeLorean was too much of a risk for them 
to insure (I thought that is what an insurance company did, insure a risk). I 
asked him what he based his decision on. He told me that for starters, the 
parts availability was scarce and that if there was a claim, it would be 
difficult to get the car repaired and it would cost them too much. Before he 
finished, I stopped him in mid sentence and said "...this is exactly what all 
underwriters, including yourself, don't understand about the DeLorean." I 
proceeded to tell him about the parts warehouse in Ohio and the estimated 20 
year supply of parts they had. I also told him that there were at least 2 
major service centers in California, the new DeLorean Motor Company in 
Houston, which controls the parts warehouse, another repair facility in Ohio 
and P. J. Grady in Long Island, not to mention some of the others like 
Darryl Tinnerstet and DMC Joe, all of which stock parts. His response was 
"Ohh...uhh...I wasn't aware of that." I also said that parts prices and labor 
rates were not all that much in comparison to German cars and many high end 
vehicles. He then cut in and said that beyond that, there are many gray 
market vehicles coming into the United States and that this didn't sit well 
with State Farm. At that point I ripped into him and said "...again, this is 
what most underwriters don't understand, including yourself. The DeLorean was 
designed for the US market and that approx. 90% were shipped to the US and 
that there is no gray market for the vehicle." I went on to further explain 
that at this time, many vehicles are being sold to people in Europe, 
Australia, Asia, etc., and that most of those vehicles need conversion for 
THEIR markets, since DOT laws are different here in the US. Again, he was 
perplexed. He then started by saying that if something were to happen to my 
car, like a fire, etc., and they had to replace and repair most of the 
vehicle, it would cost more than it was worth. I told him that that statement 
didn't make much sense, but if that was the case, wouldn't the insurance 
company then "total" the car and reimburse me the stated value? He began to 
double talk and said..."well, uhh, I guess that's not a good example." Before 
he said anything more, I said "power, want to talk about that?" I told him 
that the car didn't have much power for a sports car, that any new 4 cylinder 
car could eat my car for breakfast. "Safety, how about that? Did you know 
that the DeLorean was rated one of the safest (if not the safest) car in 
1981. Theft? O.K., these cars are rarely stolen because if it was, how would 
you be able to take it any where or ship it to another country, without 
drawing attention?" I didn't say to him that the DeLorean never gets broken 
into, but it is at risk like each and every vehicle on the road today 
(actually, now that I think of it, who would break into a DeLorean for 
anything of value like GPS, or air bags, etc., since most, if any, don't even 
have those devices, especially and air bag?) and again he sounded dumbfounded 
on the phone.

I told him that if he needed any type of documentation on parts availability, 
prices, repair facilities, etc., to let me know and I would supply him with 
what ever he needed. I told him that he should get his facts together before 
making the decision to cancel my DeLorean policy, especially since this 
cancellation would affect the other policies I had with State Farm and I 
wouldn't stand for such a flagrant decision on his part or State Farms' 
either. I asked him if State Farm insured other DeLoreans in the US and he 
said they did, but only as an addition to an existing policy, not for new 
policy holders. He went on to say that because my rep was new and State Farm 
just came back into Connecticut, that my agent wasn't aware of that policy. I 
told him that it wasn't my fault that the agent didn't know that and why 
should I be the one to loose out on the whole deal?

He told me he would reevaluate the policy, speak with my agent and his office 
people and get back to me on Tuesday. Just as he said, he called on Tuesday 
and said that he was sorry for the misunderstanding and that he "will rescind 
the cancellation of my policy and would include a note in my file regarding 
our conversation and will make sure this doesn't happen in the future." 
Safely said, I will not hear about this issue again. I asked him if he wanted 
that documentation and he said that he didn't, though he would like to send 
out the agent so he could take a few pictures and gather some info on the 
car. 

I have had more trouble insuring my car than I would have ever expected. 
Progressive was charging an arm and a leg, and Allstate wanted a small 
fortune. Hagerty would not accept my application because at the time I was on 
my parents policy and they have a rule that each licensed driver must have 
separate insurance or their underwriters would not write the policy. What a 
debacle, but it is finally over! The advise I have is to contact the person 
that makes those decision, as I did and try to educate them and stay firm and 
know your facts. Don't give in and always counter an argument with a better 
one. Although I have won my case, it may not always be in favor of the 
DeLorean owner.

Because of the sensitivity of this issue, I ask that this not be used as 
ammunition against State Farm or any other insurance company, but rather as 
incentive to fight back for those who have been turned down or canceled. I am 
sure that each insured DeLorean owner is happy knowing that there policy is 
still in effect and I would hate to see mine get reevaluated because someone 
shows an underwriter this letter or uses me as a direct example. Each 
insurance company has access to their records and can get the information on 
which cars they insure and where they have them insured.

Sorry it was so long, but I thought it may be beneficial to our ongoing 
insurance issue.

Thanks,
Joshua Schwartz
001292