It’s Insurance Review Season: Do you even know what the limits are on your policy?

by | Feb 7, 2018

Write this down on your car’s to-do list: Check your classic car insurance coverage.


Do you even know what the limits are on your policy? Do you know what the current value of your vehicle is? If your car gets hit, will you be able to fix it or will it be a total because the entire amount will be used up?

Did you know that, depending upon the state, your insurance company can take possession of your car and sell it for parts or scrap when the payout exceeds a percentage of the limit of your policy?

Over the past five years we have taken in more than a few cars that have been underinsured. In a few cases, they have also had poorly repaired or restored work that must be re-done to fix a current issue. This typically puts me in the uncomfortable position of informing an owner that their beloved vehicle cannot be fixed for what it’s insured.

We don’t have an underinsured rate. It costs the same to properly fix a car regardless of the policy limits. We also don’t have a magic relationship with the insurance carrier where we can “work things out.” No winking and nodding goes on in my world.

A few other things to remember:

  • The policy will not pay to repaint the whole car if only a portion is damaged. You may get a decent color match, but you may end up with a half lacquer and half urethane finished car.
  • Be certain your carrier has adjusters on hand who are acquainted with, and the know how to properly fix your marque. Most don’t, and this will mean hours of time for your chosen repair facility in preparing addendums and correspondence. Most replacement body parts don’t “just bolt on”.
  • Pre-existing conditions don’t only apply to health insurance. New parts cannot be welded or bolted to filler and fiberglass repairs. Many times, this isn’t apparent until the job is underway. The repair for this is the responsibility of the car’s owner.
  • A super original collector car’s value will be significantly diminished once a significant collision repair has been performed. That is real money.

This isn’t an indictment of the insurance industry, simply a reminder that it’s our responsibility as owners and collectors to make sure that we are managing our investments wisely. It may certainly be worth a look!!

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