Cap'n,
That's not a stupid question at all. I'll take a stab at an answer but
the best answer would come from someone at the insurance company level
with a greater knowledge and depth of insurance principals and theory.
For insurance companies to insure out of production vehicles as daily
drivers, the rate structure would have to contemplate the exposure. From
a liability standpoint, the pool of vehicles would include those in need
of mechanical repairs, and cars with work performed by amateurs.
Inspections would be costly and a an administrative nightmare. Who would
do the inspections? What would qualify an inspection service? Are such
services in existence? What would determine the consistency of such
inspections?
Would inspections really determine the mechanical condition of the
vehicle? Would inspections reveal whether substantial frame repairs were
properly done?
Older vehicles were not built to the same safety standards as modern
vehicles, so the rate structure for an everyday 2001 vehicle would not
be applicable to a 1960 Sprite w/o airbags, seat belts, collapsible
steering columns, side impact beams, etc., etc.
>From a physical damage perspective, the problems are more obvious.
Where does one readily procure parts necessary to restore a vehicle to
its pre-accident condition in a timely manner? How does the insurance
company determine those costs in the rate making process? What's the
cost of a new Bugeye nose? What about a grille for a Healey 100-4? Do
they total a vehicle because the windshield is broken and no longer
manufactured? Who is experienced in readily repairing these vehicles?
Really good chrome bumper Midgets can be had for $5,000. So everytime
one of them gets banged really hard, they're going to be totaled.
While some companies will add older vehicles, it's not done on a
wholesale basis and would be difficult to administer given the increased
numbers of claims that would be generated.
Remember, in this discussion we are talking about using 30, 40, 50, 60,
or older vehicles as regular everyday transportation.
Insurance companies in the UK offer coverage for classics used for
limited daily transportation, but this is not the UK and there are
probably differences in culture, extent of use, regular use on the
highway system, and other factors I am unaware of.
Generally speaking, mainstream insurance companies do not have programs
for any types of specialty vehicles or watercraft, be they motorcycles,
classic cars, jet skis, snowmobiles, ATV's, RV's and so on. The vast
majority of these are insured through niche programs and companies
specializing in those exposures.
So how do classic car companies make money on their programs? Well, by
the guidelines, the cars really aren't used, so to speak, and when they
are, they are never left unaccompanied. Also, while those on lists like
ours may be insuring one or two $5,000 to $50,000 cars, they are also
insuring collections like Leno's and unknown private collectors whose
insured vehicles are valued in the millions.
If you're still reading this, I give you credit. Did I answer your
question?
jay fishbein
wallingford, ct
Sprite,
Midget,
Innocenti's
"Robert E. Shlafer" wrote:
> Jay-
>
> I have a stupid question.
>
> Why won't insurance companies insure
> classic cars (such as my '61 Frog) as
> they insure normal new cars, inclusive
> of collision insurance based upon agreed
> value based on annual inspection, or
> something of the sort?
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