Insurance for Cobras

[Brian K Terry]

Any suggestions on which insurance company is the best value for insuring a cobra? Any suggestions would be appreciated. Thanks. Brian

[jshel1]

Brian,

Contact your present carrier and if they don't offer collector's car insurance, suggest they broker a contract through American Modern. See the link under vendors portion of my replica tribute site (link in my signature).

USAA (my insurance company for auto, home, and everything else) together with American Modern offered both agreed and stated value options for me to choose from, based upon the limits of my existing policy.

[dave from mesa]

State Farm
No limitations. Drive it like any other car.

[wtm442]

[Brian K Terry]

Thanks for all the input. Brian

[Matt_Wheeler]

Originally Posted by Brian K Terry

Any suggestions on which insurance company is the best value for insuring a cobra? Any suggestions would be appreciated. Thanks. Brian

Brian, I'm an insurance agent here in Nevada. I've insured many of these classic/kit cars in the past, and yes American Modern is a choice, but it's not the only choice. I also have access to American Collector's Insurance and Hagerty, both are excellent companies. Hagerty will give you stated value on your car with no comprehensive or collision deductible, and the prices are extremely reasonable. Call me at 702-699-5569 and I will take a few details about the car and get you a quote back within just a few minutes while you're on the phone with me. I look forward to hearing from you.

[Bob In Ct]

Try Midwest Classic or American Hobbyist (may be mis-spelled).

Bob

[jwd]

Brian,

Try http://www.midwestclassicins.com/. Robbin is a great guy and a car nut. STAY AWAY FROM STATED VALUE. It is garbage. AGREED VALUE is what you want.

Jim

[SoTxButler]

Can you please elaborate on "Stated Value". Who sets the value? "Agreed" seems to make sense.

[danc30]

Agreed value is what you and the insurer "agree" the value is. With Robbin, send him copies of the large purchases, engine, kit, tranny, and tell him what you plan to do or have already done like paint, mods etc. You and he will then agree on what it should be.

Midwest also automatically raises the agreed value each year for inflation.

If my car is totaled or stolen or something else, and it's a total loss, I get the Agreed value. Not what they think I should get.

Not sure, but I think stated value is what the market will bear at the time of the incident for other like cars.

Stick with agreed value and take Midwest into consideration. Robbin is very easy to work with.

He was in London last year.

Dan

[danc30]

From a good source.
There are three types of automobile insurance coverage offered for the total loss of your vehicle: Actual Cash Value (ACV), Stated Value, and Agreed Value. ACV coverage is what insures most everyday cars and pays out a depreciated 'book' value in the event of a claim; the older a car is on an ACV policy, the less value it has. Some insurance companies offer Stated Value policies for collectibles. These policies are better than ACV because they allow you to 'state' a value for your vehicle that is greater than its depreciated 'book' value. But, Stated Value can still depreciate vehicles because the policies generally require the insurance company only to pay up to the 'stated' amount. Only Agreed Value insurance policies guarantee you will get all of your money back in the event of a total loss

When collectible cars you own are driven only occasionally for pleasure drives, club events, special excursions, maybe 1,000 or certainly under 5,000 miles a year, not used for business, etc., it is time to enroll them in a "collector car" insurance program.

If you are insuring these cars under a standard insurance policy, you should expect problems with claims. Be prepared to deal with a claims adjuster who doesn't understand why using a repair shop of your choice or using original parts is extremely important. Standard auto insurance policies do not guarantee a value for your car at the time of loss. If you wouldn't take your favorite automobile to just any old shop for service, the same is true for its insurance.

There are a few specialty insurance brokers who provide automobile insurance policies designed to cover collectible automobiles for pleasure driving only.

If you qualify, their premiums are usually a fraction of the cost of a standard insurance policy. Insurance company underwriting guidelines may include driving usage, special care for the car (such as how it is garaged), good driving records, and few if any youthful drivers. A few brokers market polices nationwide, often including coverage for spare parts and towing.
First and foremost, your policy should be underwritten by an insurance company admitted to do business by your state insurance department. The insurance company should be "A" rated by Best's Key Rating Guide. The auto policy should be written using policy forms approved by your state insurance department.

The number one source of confusion is physical damage policy coverage. If you obtain a policy using the correct policy form, you'll hit a home run.

Insurance companies will use one of three different policy forms. They are generally known as Actual Cash Value, Stated Value or Stated Amount and Agreed Value or Agreed Amount. Each of these three forms is different, misunderstood, and frequently misrepresented by insurance agents.

Most collectible automobiles have stable values and slowly appreciate over time. Because the values are stable, an "Agreed Value" insurance policy should be obtained to protect your collectible automobiles. Under an Agreed Value policy, if your car is stolen or totaled, you will receive the Agreed Value listed in writing on your auto policy. Ninety-five per cent of all standard insurance companies do not offer an Agreed Value policy.

[Matt_Wheeler]

Originally Posted by danc30

Agreed value is what you and the insurer "agree" the value is. With Robbin, send him copies of the large purchases, engine, kit, tranny, and tell him what you plan to do or have already done like paint, mods etc. You and he will then agree on what it should be.

Midwest also automatically raises the agreed value each year for inflation.

If my car is totaled or stolen or something else, and it's a total loss, I get the Agreed value. Not what they think I should get.

Not sure, but I think stated value is what the market will bear at the time of the incident for other like cars.

Stick with agreed value and take Midwest into consideration. Robbin is very easy to work with.

He was in London last year.

Dan

Actually, "agreed value" and "stated value" are nearly synonymous terms. The type of coverage you're referring to is called "ACV" as stated above. Actual cash value is garbage for classic vehicle because there's a depreciation factor involved and really isnt even offered on any classic car policies that I know of. Both agreed and stated value is where you inform the insurance company how much the vehicle is worth in your opinion and it becomes the value you're given if something should happen.

Actual cash value is what most normal auto policies have, which is where the company gives you what the car is worth minus depreciation for mileage and usage. That's not at all something that applies to a classic car policy. The whole point of a classic car policy is that each vehicle is unique in it's build and parts and it is therefore "stated" or "agreed" that the value is X dollar amount based on the unique modifications and upgrades that each owner decided to use. While sometimes stated value policies can account for depreciation, this is hardly the case for classic vehicles that tend to see an appreciation with age and care of the vehicle.

Show me 5 1967 Cobras and I'll show you 5 extremely unique vehicles that each need their own customised insurance policy. Each owner decides to upgrade their vehicle in different ways and these companies understand that. And yes, they do need a list and valid photos of all modifications in order to properly replace the vehicle should a total loss occur.

I have much knowledge on this and many other insurance related topics, I would be glad to help clear up any confusion. Just feel free to ask me. And when I said that Hagerty gives stated value, that was a misnomer. They offer only agreed value, I just ran a quote for a gentleman with an agreed value policy and zero deductibles and the premium was amazing. Just wanted to apologize for my mistake and to make that correction. Happy hunting, everyone.

[jwd]

Originally Posted by Matt_Wheeler

Actually, "agreed value" and "stated value" are nearly synonymous terms.

For someone who sells insurance, I'm surprised that you would make such a statement. Nothing could be further from the truth. Talk to anyone that is knowledgable on the subject and you'll find that they are two very different types of policies. I don't sell insurance but I've been insuring my collector cars for almost 40 years so I'm well aware of the differences. You should be too.


This is from Grundy's Insurance.

"There is a huge difference between our Agreed Value policy and a Stated
Value policy. Some people (including insurance agents) mistake Stated Value for Agreed Value. And, that's a big mistake. If you buy a Stated Value policy and experience a total loss or have your car stolen, you may learn the hard way that your car isn't covered properly. Stated Amount forms say that the insurance company will pay the lesser of: a) The Stated Amount, b) the cost to repair the vehicle that doesn't exceed the Stated Amount or c) the "Actual Cash Value." And, with that third statement, a claims adjuster is
allowed to settle your claim for LESS than the Stated Amount! And, this is why all collector car owners need a Grundy Agreed Value policy.


Jim

[mongoose7]

I have Mid-West Classics. Robbin is a car guy, easy to deal with. State farm wanted ALL the business. Home,daily drivers and cobra. I don't want my toy car lumped in with my daily deer dodging driver. I also have 1990 Cadilac Allante insured with Hagerty. They would not write the cobra???
Steve PS cad is for sale

[RedEsprit]

If you are of a "proper" age to drive such a car, give AARP Hartford a call. I paid almost nothing to add the car to my policy with my Sport Trac. Saved 50% from Geico...who alsmost hung up on me when I told them I was building a Cobra.

[glassdriver72]

I recently contacted Grundy for a quote on a Cobra. For a value of $40,000 insurance for a year was approximately $500. Their policies are based on value. I have had a street rod with them fo rseveral years, and seem like a good company. Of course I have not had a claim to "dicuss" with them.

[Dwight]

I just insured my Cobra with Robbin Terry for $40,000 6000 miles a year. Cost me $377 a year. I was paying $695 for $40K and 3000 miles. He also insured my 06 Mustang for $288 a year less than half of what I was paying Alfa. Several of my Cobra buddies have insurance with Robbin and like the price and service they get from him.

Dwight

[twobjshelbys]

Mine are insured with what is now the company that is doing the Barrett Jackson insurance. My policy for my Cobra and Mustang is about $900/year (including stated value and regular 100/300). We liked them enough that we converted our daily drivers (different company but same agent/broker) and also moved our homeowners policy for a savings of about $1000/year over all the policies.

When my windshield and door on the Cobra got smacked with rocks I called them and told them of a possible claim. They constantly were in contact, helping find parts and stuff, but we eventually decided to not file the claim [everyone knows if you claim it will raise your rates]. We had originally asked for a very high deductible - $5000 - but the rates were only about $200/year different. I now will be going back to the high ded. It's amazing but the Cobra costs less to fix than my Dodge truck.

BJ Insurance is through DELP - check here. The folks are awesome!

[Matt_Wheeler]

Originally Posted by jwd

For someone who sells insurance, I'm surprised that you would make such a statement. Nothing could be further from the truth. Talk to anyone that is knowledgable on the subject and you'll find that they are two very different types of policies. I don't sell insurance but I've been insuring my collector cars for almost 40 years so I'm well aware of the differences. You should be too.


This is from Grundy's Insurance.

"There is a huge difference between our Agreed Value policy and a Stated
Value policy. Some people (including insurance agents) mistake Stated Value for Agreed Value. And, that's a big mistake. If you buy a Stated Value policy and experience a total loss or have your car stolen, you may learn the hard way that your car isn't covered properly. Stated Amount forms say that the insurance company will pay the lesser of: a) The Stated Amount, b) the cost to repair the vehicle that doesn't exceed the Stated Amount or c) the "Actual Cash Value." And, with that third statement, a claims adjuster is
allowed to settle your claim for LESS than the Stated Amount! And, this is why all collector car owners need a Grundy Agreed Value policy.


Jim

This is true and I'm incredibly sorry for my error. I appreciate you pointing this out to me. Although the only companies I offer have Agreed Value policies, I will continually be on the lookout to make sure I never sell a single stated value policy as long as I'm an agent. I apologize for my mistake.