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Re: classic car insurance - LONG

To: Fred Thomas <vafred@erols.com>
Subject: Re: classic car insurance - LONG
From: type79@ix.netcom.com
Date: Tue, 14 Nov 2000 10:07:05 -0500
Fred,
With all due respect, this classic car myth should be in the Urban Legends
database.

As a responsible insurance agent, nothing gets me more riled than this
irresponsible advice to others to purchase a certain classic car because it
provides coverage for limited transportation.

This has been covered ad nauseum on these lists, but I will attempt to restate
the facts concisely.

1) No classic car company (that I am aware of ) offers insurance protection for
any type of occasional use for transportation purposes, i.e. shopping, going to
dinner, to the golf course, etc.

2) Do you have a classic car policy? If so, read it! It's a written contract to
which you are a party and it is that contract which "speaks" after a loss
occurs.

3) Purchase such insurance through a professional that can advise you on
precisely what benefits and coverage that contract provides and how it relates
to your other insurance coverage contained in your standard auto policy and
umbrella liability.

If you have a disdain for insurance agents, and are coordinating this coverage
yourself, be certain of how policies and coverages interact according to the
laws of your particular state or consult your attorney.

4) Be honest and truthful on the application and any claim reports.
Misrepresentation on an application can and will void coverage. In the case of
loss reports, you can't fool the company. Claims adjusters have already heard
every creative and clever story you think will trigger coverage. Again, read
your policy and the disclosure statements.

5) If you still think that what a company person told you or tells you on the
phone is contrary to what I state here, ask them a) to direct you to that
portion of the policy contract that states what they are telling you, and b) if
you do not completely understand, ask to speak with  someone more experienced
to better explain the language.

I have called and corresponded with every single one of the commonly known
classic insurers, including Hagerty (whom we represent and consider one of the
better classic insurers) and I have yet to find ONE that provides ANY coverage
for occasional use of the insured vehicle for shopping, etc.

Hagerty was the insurer that verbally stated to me that they would allow
occasional use of the vehicle to drive to work. When I further queried the
underwriter on his definition of "occasional", he responded "once a year would
be considered occasional; once a month would not". As I said, we write classic
policies through Hagerty but we do not advise clients in the manner you
describe. If we did, there is a simple answer to the coverage trigger after a
loss occurs, it's called E&O, Errors & Omissions Coverage.

I'm sorry but there's no free-lunch. Classic Car insurance does not provide
coverage for the all of the uses that you describe.

Sorry for the strong tone of this email, but one of these days, somebody is
going to have a serious accident while using their vehicle based on this
erroneous advice, there is going to be no coverage, and they are going to be
left in a situation where their assets are at risk.

Insurance is becoming a commodity in this country and it is unfortunate.

Jay Fishbein
Independent Insurance Agent
Wallingford, CT



Fred Thomas wrote:

> Bill, I have Hagarty and for a few simple reasons, the most important of
> which is mileage, and personel use, they do not have a 2500 MPY restriction
> on driving or all of the small clauses on personel use such as no shopping
> or to & from work, they do discourage any dailey use.  "FT"
>
> > Any suggestions on which classic car insurance company to use.....your
> > advice would be appreciated
> >
> > thanks
> > Bill B
> > Charlotte
> > '67 Healey BJ8

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