Hello All,
Since this topic comes up from occasionally, I thought this story may be
timely. It appears in Condon & Skelly's latest "Agent Highlights"
newsletter in the column "From The Claims File" and deals with the poor
"advice" that many car owners pass to one another about how to
circumvent the vehicle use restrictions of collector car insurance
policies.
"The collector vehicle insurance program is intended to insure vehicles
used in the pursuit and enjoyment of the collector car hobby. Use is
generally expected to be limited and vehicles are supposed to be used
for events such as car shows, parades, tours or "cruises," not for
general transportation such as commuting. Bruce Radway of The St. Paul
Ins. Company's Collector Motor Vehicle's Claim Office, as adjuster with
26 years experience, says regardless of these restrictions, there are
always some who bend the rules and then try to cheat the system. He
recalls a typical case involving one collector whose story didn't quite
add up."
"A few years ago, we received notice of a claim where the insured's 1973
Dodge Dart four door sedan was struck by another vehicle on the 405
Freeway in Los Angeles during a weekday morning rush hour. While the
damage was minor and the insured was not at fault, we suspected the car
was being used for commuting."
"The insured stated he was taking the cars in for new tires that day and
the shop was near where he worked, which was why he was on the freeway
at that hour in the morning (It's amazing how often we hear that story.)
He insisted that he used his other vehicle, a 32 foot motor home, for
his daily commute to and from work."
"It did not require a great deal of detective work to get to the truth
of the matter. A call to the tire shop revealed that the Dodge owner did
not have an appointment for tires that day. Next, a quick check with the
insured's place of business confirmed that the car he arrived in every
day was a 1973 Dodge Dart. Confronted with this information, the insured
withdrew his claim."
This story speaks for itself. Anyone choosing to make material
misrepresentations to an insurance company runs the risk of voiding
coverage. It's no secret that many owners of collector cars use their
vehicles outside of the use restrictions of their policy. It's best to
be familiar with those that apply to your particular policy to avoid
such a problem.
Jay Fishbein
Wallingford, CT
|