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Re: was BCDW2000 - future of hobby

To: "MG List" <mgs@autox.team.net>
Subject: Re: was BCDW2000 - future of hobby
From: Max Heim <mvheim@studiolimage.com>
Date: Wed, 1 Sep 1999 18:58:55 -0700
There are collector car insurance specialists who will write an "agreed 
value" policy. This may help in some situations. But obviously, they 
can't write a policy for $10,000 on a car that would sell on the open 
market for $4000 -- that would be just asking for a fraudulent claim. I 
mean, if you wanted to get rid of the car and couldn't sell it for 
$10,000 (best offer being a generous $4500), you could just abandon it 
and claim it was stolen, and collect $10,000 from insurance. No insurer 
would put that temptation in your path.

Now, for example, I probably have $5000 invested in my MGB, over 11 
years. A lot of that could be considered maintenance and upkeep. And my B 
would probably still require $2000 of body and paint work to sell for 
$4000. So, is my insurer going to value the car at $5000, or $2000? 
That's right, $2000 is all I could expect, and rightly so, unless I was 
willing to pay exorbitant premiums for the privilege of having the 
insurance company assume my risk.

Unfortunately, as a 16-year-old, the insurance companies are going to 
take the dimmest possible view, rightly or wrongly, regardless of the 
type of car involved. But overall, I don't think insupportable insurance 
costs are a major threat to the hobby. After all, the values and HP 
ratings for LBCs are pretty shrimpy compared to, say, current Corvettes 
or Porsches, or even Mitsubishi Eclipses (or even Honda Civics!).  And 
they are waaaaay down the list of frequently stolen vehicles, despite the 
total absence of security features (such as windows, door locks...). 

So, I would think there's a lot to be thankful for, although I realize 
that isn't helping you in your case. The nerve of those parents, anyway! 
You'd think they'd know that the purpose of garages is to collect odd 
bits of British iron.

Seriously, though -- are you really driving a Silver Shadow? If so, I 
wouldn't complain -- it looks bad to the proles.

; )

Bestoso had this to say:

>I agree with Andy.  I am sixteen years old and was going to a triumph
>gt6 to restore to use as a daily driver but...
>
>a.  You can only work on a car in a garage and my parents wouldn't let
>me move there cars into the driveway.
>
>b.  I called my insurance company and they said they will only insure
>for the amount the car cost me and not what my repairs were and as a new
>driver  who would be using this car every day i could not risk losing
>that much money if I got in an accident.
>
>So sadly I had to settle with a newer piece of junk that I could get
>insured for less and wouldn't cost as much.  
>
>Matt Bestoso
>72 Rolls Royce Silver Shadow
>


--

Max Heim
'66 MGB GHN3L76149
If you're near Mountain View, CA,
it's the red one with the silver bootlid.


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