RB, You are 100% correct. Insurance rates do not define the
quality of claim service.
Owners will report positive experiences with virtually every
classic car insuror. Unfortunately, the majority of the advice
will be based on cost of the policy or possibly payment of a
physical damage claim.
Both of those aspects are of little value when you are faced
with the true purpose of insurance which is to protect your
financial assets after an accident. In other words, how will
the company respond to a liability loss?
Rates do not significantly vary from one classic insuror to
the other. Allowable usage may vary, and there might be someone
out there still writing "Stated Amount" physical damage coverage
in lieu of "Agreed Value" physical damage coverage. But
most important, one needs to determine the liability service
that a company is going to provide.
I have never found a great discrepancy in the use limitations on
these classic car policies. Some may allow greater annual
mileage but I have never found a company that allows use of an
insured vehicle for regular transportation. I'm sure this may
elicit responses to the contrary. I stand by my statement and
will not participate in a discussion about how to trigger
coverage by lying after the fact. Suffice it to say that the
claims departments have heard more and better "stories" than you
may dream up here. The advice to lie and report that you were
"going to your mechanic" is really old. My advice is to tell the
truth when you have a loss.
I wouldn't put too much stock in examples of claims payments
or denials that don't provide the exact facts and circumstances
surrounding thte claim.
Someone cited a denial of coverage for an unattended car at a
car show. My professional opinion is to withhold judgement until
hearing the other facts.
"Stated Amount" vs "Agreed Value" physical damage coverage are
not the same. Basically "Stated Amount" coverage is a rating
tool; "Agreed Value" coverage sets forth the amount the insured
will be paid in the event of a total loss.
I wish I had more hands on claims experience to relate but our
agency stopped brokering these policies several years ago. While
we still sell an occassional one to an existing client, we
came to the conclusion that too many of these little $70.00
policies are time-bombs waiting to explode.
Many insureds abuse and ignore the use restrictions. Others
refuse to carry proper and adequate liability limits because of
the added cost ($20.00 ?, $30.00 ? Whatever!) Others ignore the
importance of Uninsured Motorists coverage and limits. Check
your State insurance laws for how U.M. coverage applies when you
have more than one auto insurance policy. States differ. Some
laws may disappoint you when your attorney looks into presenting
a $500,000 injury claim on your $70.00 policy that you
purchased with only minimum U.M. coverage.
Faced with the above Professional Liability land mines, it was
easy to make the decision to just refer inquiries for this
coverage to "Hemmings or one of the enthusiast magazines".
Since I am only licensed in the State of Connecticut my comments
only apply in the State of CT.
Jay Fishbein, Agent, CIC
Wallingford, CT
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