Ed Fotheringham
Cover Your Assets
October 1, 2005
There are a few instances where insurers almost always suspend coverage—among
these verboten activities is the drive to work. And it’s a virtual certainty you
won’t be covered on the track. “You’re insured while on the trailer and being
unloaded,” says Leland-West’s Bromberg. “Once you’re on the track you’re on your
own.” Hagerty’s policy follows the same tack. “We don’t insure on the track,” he
says. “You have an expensive hobby, and I wish you well.” Parish Heacock’s
coverage similarly ends at the racetrack’s edge. According to Bromberg, there
have been some issues with car clubs’ labeling track days as “educational”
events; be sure you’re clear on semantics, and how they might impact your
insurance before you head out onto the track during one of these events—and get
it in writing.
Classic insurers pride themselves on a personalized level of service that
they say regular-use insurers simply can’t provide. “We try to pay claims the
same day we receive them,” says Bromberg. “And if there’s a problem I do
whatever I can. I get involved.” The fact that he lists his own e-mail address
and phone number on his web site gives credence to the claim. Hagerty, which
numbers its policyholders in the hundreds of thousands, says that its relative
size gives it an edge both on service and on price. “Not only is it better
service, but it’s less expensive,” says Hagerty. “We’re far and away the
largest, and we can bring economies of scale from an insurance standpoint.” Even
within the niche marketplace there is enough diversity that you should be able
to find the style of customer interaction with which you’re most
comfortable.
Many of these companies offer extras such as flatbed services. “What we realized is that you play around in old cars and they’re going to break down,” says Hagerty. His company also provides consultation services for its customers; you can tap their expertise, for instance, to help design a garage with proper security and climate-control systems. Since the guys running these specialty insurers tend to be collectors themselves, they understand what makes an enthusiast’s life easier. And, because of this, should you need to make a claim, you will likely find a much more sympathetic ear with a classic insurer than with your regular insurer. They know that very little in the world of classic cars is done by the book. “We know that windshields can cost $2,000 or more,” says Hagerty. His company is among those that do not require competing quotes, and which let you select the shop that will perform the work. “If you have a Bugatti, you’re not going to take it to just any shop,” says Parish Heacock’s Gandy. “We urge the client to take the car to the right place.” With a regular-use insurer you could find yourself facing a claims representative who insists that you go to an approved body shop and reminds you that OE parts are prohibited—never mind that the car in question was built in 1954. “Conventional carriers don’t understand someone’s charging $64 an hour to fix a Pantera,” Gandy adds. “Specialty cars require more care.”
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