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BY DAVID TRAVER ADOLPHUS

PHOTOS COURTESY OF HAGERTY INSURANCE AGENCY

Years of "we're the good guys" PR lains will happily insure your collector car. later, insurance companies are still They'll give you a "stated value" policy, the villains. That's because some of and you'll think you got a good deal, unless them are villains, as anyone who's had an you ever try to collect. "The key word in a adjuster come to tell you they're not paying stated value policy is 'lesser'," said Sneed's for something can attest. Those same vil- Tommy Sneed. "Stated amount policies will pay the lesser amount of the stated amount coverage, or they can pay the cost to repair the stated auto ... so far, you're still okay ... or the actual cash value," he said. "That allows the claim adjuster to settle the amount for less than the agreed value. It's not guaranteed."

What many have been pleasantly surprised to find out, however, is that collector-car insurance agencies are actually run by car nuts, and are actually not interested in making a buck off your heartbreak. Even better, it's dirt cheap.

With at least a dozen companies competing for your business, you have the opportunity to figure out which one is the best fit for your needs. Before you can do that, you need to know what your needs are.

The first thing to know is that, almost universally, collector-car insurers are very picky about who they insure, what they'll insure, and most importantly, how you can use your car. You'll have to pass several hurdles before you even qualify for the insurance. Firstly, very few insurers will cover an inexperienced driver. Several require as long as 10 years' experience since you got your license, or to be at least 25 years old. Hagerty is one of the most liberal insurers, and considers 18-year-olds with five years' experience. Let us know who's granting licenses to 13-year-olds.

Another piece of the "who gets covered" question has to do with less tangible things, all of which add up to, essentially, "are you a car nut?"

"Insurance companies aren't idiots," said Ford Heacock. "We watch claims activity c1osely ... when the economy slumps, people sitting on some car value may do things." Jim Grundy agrees: "We will protect the investment a person makes, but it's a different deal when it's a millionaire's folly, or a person's last dollar."

A track record with collector cars, club memberships, and any other evidence of involvement in the hobby all count in your favor. But especially in an ever-changing car market lousy with speculators, they're going to watch their backs.

If a guy has a collection of Ferraris and one of them happens to be brand new, we'll insure it.

Defining your car is one of the areas that can help you make your choice. Essentially, if you think your car is a collectible, someone will insure it on that basis, but it's a lot easier if it fits into a common category. New cars actually do qualify, Continental Western's Kathy Moore-Stark told us. They offer a "modern collectible" policy for cars "that we expect to appreciate in value." Ford GT, Ferraris, Corvettes, and other cars with a history of appreciating, used under limited circumstances, are often covered this way. As with most things in the old-car world, it's a hands-on process. "If a guy has a collection of Ferraris and one of them happens to be brand new, we'll insure it," said Laura Bergan from American Collectors. While the rates are likely to be similar, you'll find policies for original, restored or modified cars; muscle cars, sports cars, and American classics. Looking for a policy that fits your car can help get you an agency with specialists familiar with the issues specific to your car. Many insurers are very wary about accepting kit cars and replicas for which there aren't accepted values. There are a few non-specialists involved as well, including State Farm, who will insure your collector car through a local agent. According to spokesman Kip Diggs, they can bundle or "multiline" it together with all your other State Farm policies for a discount-and a single payment.

Use is the last criteria. The most common restriction is on mileage, with policies allowing annual driving from 1,000 up to 10,000 miles. Some policies explicitly restrict use to club or hobby-related events; almost all will deny you coverage

if they know you plan to enter any sort of competition, and void an existing policy if they find you've been on a track (see sidebar). Ford Heacock admits that while they strongly encourage limited use, a close reading of their policy won't uncover any limits on use or mileage at all.

We've alluded to it, and you probably know this already, but collector car insurance is dirt cheap. We know people who keep their old heaps legal for $50 a year, although the industry average is around $200. "The majority of claims are for nondriving comprehensive losses," said J.e. Taylor's Paul Jakubowski. "During winter months in the northern tier, we see claims from snow collapse of the garage roof, or the wind blows a tree down." Those single-vehicle incidents may be expensive, but there's no other party suing for damages. "More incidents occur to collector cars when the vehicle is not in use than most people might think," added McKeel Hagerty, CEO of Hagerty Insurance. "We obviously don't pay nearly as many claims on collector vehicles as a standard insurer would pay on daily drivers, and the cost of the premium is reflective of this usage," said Laura Bergan. She recommends checking for up-to-date information on company Web sites, and suggests looking at American Collectors' Claims Service "what to expect" section. If you think you'll need it, look for plans like Classic's that offer roadside service, or American's agreement to let the owner choose his own restoration shop.

"My one piece of protection advice is always to pay special attention to the surroundings of where you park or store your car," said McKeel. Almost all companies specify protected storage to qualify. "Ideally, collector cars should be stored in a goodquality structure that is secure enough to limit access from unwanted people, animals and the elements," he said. "Climate controlled garages are preferred in colder regions. And it is critical to keep loose objects that might fall on your cars secure and clear. Your readers would be amazed at how many incidents occur just from having something fall on a fresh paint job!"

"For seven bucks per $1,000, that's not much money, " said Paul Jakubowski, and that's Tommy Sneed's credo as well. "It doesn't cost that much to begin with. You know, when you go to sleep at night, you'll get your car's value.

Insuring a Race Car

Dan Cook, who races the RedMist Rallysport 1970 Datsun Pl-51O we profiled in HS&EC #16, sums up the news for racers: "If your car gets totally wadded up, you've got to be prepared to walk away from it:' That's not a license to go nuts, that's a word of caution. File a claim for damage with anyone, even sympathetic collector-car insurers, and mention the word "track" or "competition," and not only will they not pay the claim, you're likely to get your policy cancelled. We only know of one company in the U.S., Furman (formerly ProSure), which will insure cars for actual competition use. Furman offers a supplement on top of your regular insurance-you'll have to have an agreed-upon value policy in place already. They're also launching what we believe is the first policy specifically for autocrossers.

But you do stifJ need liability coverage on anything you race, whether it's a street car you occasionally autocross, a totally dedicated race car like Dan's, or something in between. At a minimum, you're going to have to provide proof of insurance to organizers of any reputable event. Dean Cusano (HS&EC #12), who puts tens of thousands of miles a year on his street/autocross/track Jaguar XJS, admits to insuring it as a street car for just that reason. "On the tr,ack, if I wipe it out?" said Dean. "That's just too bad.

If you're taking that kind of risk, you've got to be prepared to pay the price:' Dan Cook agrees: "If I'm at an event and it barrel rolls and hits a tree, I'm not going to report it:

We called Jon Auerbach (HS&EC #20), who campaigns his unique 1952 Lazzarino in hillclimbs and long-distance rallies, and he also admitted to having the car insured as a daily driver, "So I can drive it fast." However, he'd just acquired another specialty race vehicle, a 1960 Mercedes-Benz 3000 convertible, built especially for rallying, and he's entering it in this year's New York-to-Peking race (you bet it'll be a Modified for Racing feature in a future issue). When we spoke, he'd just returned fro a race planning meeting, wh representative from Hagerty de the door-to-door policy they' together specifically for the event.

That's not uncommon: "Rally America carries its own huge event insurance liability, which is where most of the entry fee comes from," said Dan. That's also what keeps World Rally Championship stages out of the U.S.A., but "there's a certain understanding among drivers," said Jon.· Another recent fun rally participant described a claim he filed with a reputable<lJational collector car insurer, who had provided a similar blanket policy for his event. Months later, he still hasn't· heard a peep - or seen a check reimbursing him for his out-ofpocket expenses.

Remember also that the more your car looks like a race car, the less sympathetic an adjuster is likely to be -that means graphics, roll cages, competition seats, etc. Your best bet is to hang around racers, prowl message boards, and find out who's most sympathetic to your cause. "There are some names that are passed around," said Dan, and there are even insurance agents who are themselves enthusiasts, and might be willing to write a policy that covers your Minilites and Rootes blower. Even though that won't help you after a shunt, you'll still need the coverage against damage or theft at home, and especially in transporting your car to and from an event. Companies including Heacock, whose Ford Heacock is a vintage sports car racer himself, offer what he calls STP policies for competition cars: Storage, Transport and Paddock.

Agreed-upon Value

just because you paid $44,000 for Richard Lentinello's old TR4 at Gooding, doesn't mean your insurer to give you $44,000 when you 'Your cigarette smoldering on the floor.Even with the surrey top, your <Worth twice the going rate for hs. Your insurer is aware of fog sale, though. In fact, they eople who track auctions, read leds and prowl club sites, all so can keep up to date on the values of cars.

In general, that makes for a lot more give-and-take with customers-thus the "agreement" part, especially if it's a modified vehicle. "If you were the president of Grundy Worldwide, it would be your favorite part of the job:' said the eponymous jim Grundy. "I probably look at more pictures of cars than anyone else in America." He says they're paying close attention to the decline in interest in muscle cars, and the upswing in sports cars, so they don't fall behind the curve. "You have to allow some credence for the owner's investment, and the increasing costs of restoration:' he said . "The M.G. owner might have been better off restoring a jaguar."

"Conversely ... so many people have been led to believe, by the televising of auctions today, that their cars are worth a great deal more than they are:' said jim. "We have to bring them down to earth."

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