- Each day in the United States, an average of 9 people lose their lives due to distracted driving.
- Distracted driving accounts for 25 to 50 percent of all automobile accidents, according to AAA.
by A. Mani and K. Vargas
Welcome to this week’s “Coverage of the Week” blog where we discuss a particular coverage to educate and clarify a particular topic. This week’s topic…Antique Cars Insurance. Your 1958 Corvette Convertible can’t be insured in the same way as your 2010 Corolla. They are different, and therefore there are different coverages and rates. Allow us to tell you all you need to know about Antique Auto Insurance.
Generally for a car to be considered a collector car the vehicle will need to be 25 + years old. Some carriers do make exceptions to their guidelines based upon a cars rarity, uniqueness, collectability and/or historical significance. The details of the vehicle will normally need to be reviewed by the insurance company’s collector car specialist to determine its eligibility.
Collector cars are relatively inexpensive to insure compared to regular auto insurance policies. One reason for this is a collector car is maintained primarily for use in car club activities, exhibitions, parades, functions of public interest, or for private collection and is used infrequently for other purposes such as a joy ride. Generally, these cars are rarely driven and minimal mileage is tacked on annually. If a client has a collector car that is driven on a daily basis to and from work etc., the collector car eligibility would be declined. Some carriers also exclude damage to a collector car caused by a driver under the age of 25 years old.
These vehicles are normally insured on an agreed value basis. Agreed value is agreed upon by the insured and the insurance company before policy issuance. In the event of a covered total loss the insurance company guarantees to pay the value agreed upon. Normally the comprehensive and collision deductibles are “Zero” if this coverage is selected, and full glass coverage is included (varies by company/state). Photos of the car may need to be provided, and a vehicle appraisal could also be required if a client wants a higher agreed value than what the company helps determine.
The collector car policies usually include limited coverage for spare parts, for a direct or accidental physical loss or damage to spare parts you own that are kept as replacement for components normally part of your collector vehicle. Also, newly acquired vehicle coverage is included for up to 30 days normally. So if you purchase a new collector car and forget to tell your agent, you are covered for the first 30 days and some carriers will provide up to $50,000 in coverage for this newly acquired vehicle – but talk to your agent to be sure.
Policyholders are required to have an acceptable driving record as well as at least one regular private passenger vehicle. It’s also important to know that most of the basic auto exclusions such as wear and tear, vehicles used to carry people or property for a fee, racing or track usage, or mechanical breakdown are excluded from this type of policy.
By: Alan Mani
The Insurance Journal recently published an article on the insurable value of the teams playing in the World Cup. The article states: “Lloyd’s has released research with the Centre for Economics and Business Research (Cebr) that ranks each team in the FIFA World Cup based on the collective insurable value of each country’s players. The total collective value is estimated at £6.2 billion (€7.7 billion/$10.5 billion).” Lloyd’s predicted, based on insurable value, Germany should walk away with the cup in Rio.
Last week the US played its futbol nemesis, Ghana. Coming off of two consecutive World Cup defeats to Ghana, each ending the US run in the respective tournament, the game was an important one for the US team. The game was coming to its final minutes with the score all even at 1-1. The US received a corner, and at the 86’ mark, John Brooks scored the winning goal. The victory put the US one win away from advancing to the next round, with Portugal next on the docket… As we all have seen by now, we were a mere 35 seconds away from the improbable victory over Ronaldo and Portugal. With the US holding a slim 2-1 lead in the closing minutes, Cristiano Ronaldo crossed the ball beautifully to Silvestre Varela, whose header found the back of the net before US goaltender Tim Howard could react.
The next game the US plays will be against Germany, and based on Lloyd’s prediction of Germany walking away with the cup (because of their insurable value), the odds are not in our favor. Though complicated, there are several scenarios for a US advancement to the next round. It is too complicated for me, so follow this link to radioalice for all of the answers…
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