Question on car insurance
 

So its come to the point Ive got some good money tied up into bodywork and paint on my AA project. Ive got the title in my name and active antique plates for it but no insurance due to it being in 4000 pieces for years. With all the wacky weather and whatnot im starting to get a bit uncomfortable having money into it and no way to protect it so i have some questions as im sure im not the first to feel this way:

Does any company offer like project insurance? Like insure it as it is now with the cab off the frame, painted fenders carefully in garage rafters, running frame, etc

or another way to put it:

When does a project become a car to get collector car insurance on it?

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Re: Question on car insurance
 

ooh perfect - has anyone ever gone this route? is it reasonable?

Re: Question on car insurance
 

I have the vehicle under construction insurance with Hagerty and also have my
AA insured with them. They are going to want a few pictures of your AA. Give them a call, nice folks to deal with.

Re: Question on car insurance
 

Hagerty’s is the way to go…!

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Cool! ill give them a call after i hear back from my modern vehicle insurance agent - see what she says too.

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I have Grundy on one of my cars, they say they offer project insurance, I sent them an email and never heard back. Maybe I should check with hagarty.
I did have a disaster a few years ago with my barn/shop burning to the ground. Much to my surprise my homeowners insurance covered all of my car parts that were in there, much like they would the furniture in your house. However they would not cover the car itself. Said it needed its own auto policy. Fortunately most of the car was in loose parts.

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I have HAGERTY INSURANCE on my everyday A but when I lost,recently my A to a total fire HAGERTY WAS quick to pay me the agreed price !

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Ditto

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Hello, I have the Hagarty insurance on my 49 Buick that was driven until engine needed rebuilt, now has the restoration project type insurance until engine is finished, also have it on my Roadster that is drivable.

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The one caveat that you need to know if they are going to establish their value on the price you have paid for parts, -and your labor basically does not count. I circumvent this by issuing an invoice that has 'rebuilt transmission', or rebuilt rear axle assembly', or 'restored xxx' instead of an itemized listing of the labor to rebuild/restore something. The price works out the same at the bottom of the invoice, but the underwriter wants to see documentation on what you spent, ...and not what you feel something you have restored is worth.

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I know it sounds silly, but even if you already have you policy in force, send them something in writing asking their regional adjuster to stop by for a look see, and to take their own photos. However much it is, just pay it, even if they want to bump it a bit. It's not worth the chance. The time to work these things out is now.

Just my 2 cents...

Re: Question on car insurance
 

Very good thoughts Gene!!

FWIW, I am on the preferred list of authorized repairers for several classic car underwriters, and what I have found is most hobbyists are underinsured on their collector cars where their policy does not even have enough coverage to repair even the most minor of damage.

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Should a car be insured for more than it's worth, so that it's covered in case the damage repair costs are more than the car is worth?

Old car insurance is relatively cheap, so it's not worth undervaluing a car just to save a few $$ on insurance.

Re: Question on car insurance
 

The way you word this is what makes this confusing. You aren't insuring it for more than its worth, but instead you are insuring it for what it IS worth.
In other words, you are basically stating you want to insure for enough funds to repair or replace to the exact same condition as your vehicle was in about 5 seconds prior to the casualty.

Paul Shinn has a great video on YouTube regarding the difference between a car that is 'sorted' vs. one that is unreliable. The "worth" difference between these two cars can be as much as double. Unfortunately most underwriters use comparable that are for sale to establish a value. Pictures of a vehicle for sale and the description in the advertisement are not always accurate.

For example, if you have a Model-A Tudor that is advertised as "restored" however it will barely run enough to pull itself out of the garage, and the condition of the brakes and steering make the car dangerous to drive, would you not agree with me it is worth much less than another one that looks exactly the same cosmetically however this Tudor can safely Start, Stop, and Steer, and it can do this in a reliable manner for many miles? The issue with most underwriters is they cannot differentiate between the two types when looking for comparable vehicles for sale, and they make assumptions. Most underwriters are NOT car people. Their knowledge is limited other than to say it looks pretty in the pictures.

The second part of this is, when your vehicle is involved in a casualty it is assumed the vehicle will need to be professionally repaired. Since the Pandemic (-and likely even before that period), prices for labor and materials have escalated drastically. If a typical specialty collision repair shop is charging $100 an hour and you have insurance for $12,000 on your vehicle, most adjusters use the 80% rule meaning if the estimated repair costs are close to $9,600 or more, the vehicle is considered a 'total-loss'. When you are in that situation, you quickly find that rarely will that $9,600 make the complete repair to your vehicle.

Additionally, the other thing that has affected the industry is these insurance companies are under contract with a salvage company that they agree to take all of their salvage vehicle. Therefore the practice of buying your car back from the insurance company is gone in most areas because of their contract with the salvage company. The only way that I have seen this circumvented is when the car owner paid the difference out of pocket to have the repairs completed by the shop. So if you have a Tudor that would cost $25k to replace with a truly equal vehicle, and you have it insured for $12k however the repair costs are going to be $25k, -you either get to pay $13k out of your pocket, ...or you accept the $12k from the insurance company and surrender your damaged vehicle. Either way, it costs you $13k out of pocket to find a replacement for exactly what you had simply because someone was being frugal with their coverage.

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Best thing to do is to talk with your agent personally (or on the phone) and explain what you have, what you want covered and for how much. I dont think any insurance company is going to allow someone to have coverage for more than the car (or sum of parts) is worth. On the other hand when I established coverage for my classic car I sent in a series of photos that were asked for and told them what I wanted for coverage. They complied with no problem so I figured I must have been in the ball park for value.

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X3 on Hagerty.

They are easy to deal with on this matter.

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Give Hagerty a call, they are great to deal with. I have 2 of my project A's insured with them and you can increase coverage as the project progresses.

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Like Will says, give Hagerty a call. The issue with their "Vehicle Under Construction" policy is that you must be "actively restoring" your vehicle.

I have a very special (to me) barn fresh Model A that I am not "actively restoring" (I just like looking at it in its unrestored state, sitting in my garage :) ), but I do have the car (and some parts for it) insure with Hagerty against fire or theft or if the garage falls on it, but no collision insurance (it is not like I am going to run into anything with it). Hagerty helped me tailor my agreed value insurance coverage for this situation.

Brad in Maryland

Re: Question on car insurance
 

Folks,
For what it's worth. I did get insurance on my 32 AAB truck. I did call Hagerty's and got a lower quote from them than from my current insurance company. But I mentioned that I wanted to use this truck as part of my hobby business as a promotional piece. (put my Hobby business name on the side of the truck) Anyway they were not interested in covering the truck after I mentioned that, as they do not insure "Commercial vehicles. So I went back to my current agent, they did some checking and we agreed to insure it as a Business vehicle coverage.
Yes I am going to pay a little more per year, but felt being able to do what I wanted with the truck was worth the cost.
Insurance, well its always a challenge. You hope you have the correct coverage and never have to use it!
I liked what Hagerty's had to say up to the point of the commercial issue. Now maybe they have a Business policy also?? They did not suggest that option.
Good luck, and I agree, get some coverage on it.
Regards,
Chris