You just received your renewal notice for your car, and like most insurance, the premium has jumped dramatically from the prior year. You didn’t have an accident or a ticket in the last 12 months. No new drivers in the household. You just don’t understand why. For the first time in years you decide to shop around.
After hopping on the internet, you discover what you think is the solution. As the owner of a 2018 Porsche 911, you find yourself in the position of owning a collector car. Limited production, a national club focused on the historic brand, and magazines, shows and even auctions dedicated to cars just like yours. After a few more clicks you come across a collector car insurance specialist website that even featured a Porsche just like your 911. After entering just a few pieces of information into their on-line rate, you see a premium that is half of your renewal bill. You hit submit and get a message that a representative will contact you shortly about your car.
You wait for the credit card in hand for the call.
A few hours later a representative reaches out with disappointing news. They will be unable to provide a policy for you. You don’t understand why. You were able to get a quote from their website. They had a picture of a car like yours. You know your car is collectible. What happened?
This is a scenario that we at Classic Insurance see daily. Car owners are seeing their insurance skyrocket and in looking for an alternative, they find agencies like ours. They do own a car that could be considered collectible, but there are other factors to consider. Factors that make insurance policies like we offer significantly less than standard auto insurance.
First, and most importantly, is how the car is used.
With the caller and his Porsche, he was clear that it was the only car he owned, and it was his daily driver. The primary reason why collector car insurance is significantly less than standard auto insurance is the limited use of collector cars. They are not daily drivers and are maintained for pleasure use, like weekend drives and car club activities. Driving daily in traffic and using the car for utilitarian reasons is not what collector car insurance is designed for. You may be driving a collector car daily, like a Porsche 911, but the usage is no different than someone driving a minivan. In the insurance company’s eyes, there is no difference between the two.
The Porsche 911 owner made a few more calls and kept hearing the same reason for the decline, the car must be maintained for pleasure use. The decision was made not to tell the whole truth to the next company he spoke to. Saying that he maintained the car for pleasure use only would be the ticket to getting his half price policy. In his mind he wasn’t lying. He loved his job and driving to his work was a pleasure. Once again, however, he was declined as the representative discovered he only had a Porsche and therefore his only option would be a standard auto policy.
With that, he paid his renewal as in his mind there was nothing else he could do. And that was probably the correct answer.
A few things to remember when looking at your insurance policy. Premiums have escalated due to inflation. Everything has increased in price, and insurance is no different. The cost of repair has increased over 30% in the last few years. Also, many States have been reluctant to approve rate increases in the last few years. This means larger increases to make up for that. Many insurance companies pay out nearly every dollar they take in when paying claims and expenses. Most have lost money due to rates that have not kept up with inflation.
So, what can you do? First in some cases you may have a car that is collectible that could be insured by an agency like Classic Auto Insurance. The Porsche 911, had it been the second or third car in the household, was not driving daily and was maintained primarily for pleasure use, might qualify for the discounted collector policy. That may be your situation. If it is, please reach out to one of our licensed agents for help. www.classicins.com or 888-901-1338.
If you are unable to qualify for a collector policy, there are a few things to discuss with your insurance agent:
- Ask for a higher deductible for your comprehensive and collision coverage.
- If you are driving less now due to working from home one day a week, let your agent know. He may provide a lower premium due to the reduced exposure.
- Make sure you are getting every discount you deserve based on your driving record, where your car is stored and security measures you have taken to protect it.
Contact Classic Auto Insurance Today
If you feel like you still might qualify for collector vehicle policy, please feel free to contact Classic Auto Insurance at 888-901-1338. We would be happy to discuss your specific situation with you.
