Insurance on LBC's

[Bster]

Hello All,

I am new to the world of LBC ownership and wonder if anyone can tell me a good source for insurance on a 1978 MGB. All of the classic car insurance I have found require the car to be garage kept (I unfortunately do not have one) and driven less than between 3,000 and 1,000 miles a year (a real crime for a car that is supposed to be driven IMHO). But on the other hand this car is not a daily driver, so won't get the wear and tear of a normal vehicle.

Another obstacle for me is that this car is in New Jersey, a horrible state for any car insurance. Are there any middle of the road insurance possibilities for pleasure cars or "classic" insurers with looser restrictions?

Thanks for any help.

 

[jaybird]

Hagerty.

We have our B insured through them, it's $85 a year, based on value of the vehicle, no deductible. I have no limitations on mileage, however, I don't intend to put 15,000 a year on it either.

Call your auto insurance agent, ask them to get you a quote through Hagerty.

If you have 'antique' or 'historic' plates on it, the rates may be even cheaper, I'm not sure how that works.

 

[dklawson]

Hagerty requires a garage. I have my Mini with Hagerty.

I have been told that State Farm offers some form of "agreed value" coverage suitable for collector cars and that they have more flexible limits on use and storage. I have no personal experience with them but suggest you contact them if a garage is not an option for you.

 

[Steve_S]

Any true classic car policy will require a locked garage and only allow you to use the car for pleasure, never for commuting or running errands. Haggerty and Grundy Worldwide are the "big two". I believe these two will also offer an unlimited mileage policy.

I use Grundy for all my cars and have been very happy with them. They are very lenient on the "pleasure driving" issue. Just make sure that whatever policy you get is an "agreed value compensation". That means that they will cut you a check for a totaled or stolen car for the full amount the policy is for, no questions asked. A standard insurance policy will only give you blue book which is typically not market value.

I have four cars with Grundy on full coverage, full market value agreed for under $300 per year.

 

[dklawson]

I investigated this years ago... and again recently when forced into changing my insurance. Please don't take offense, but I discussed this with the Grundy and Hagerty people in detail. Hagerty specifically allows occasional uses of the vehicle which Grundy does not allow. However, all of our discussion of Hagerty, Grundy, JC Taylor and others is meaningless as Bster specifically said garage storage was not an option.

I'd still encourage you to call State Farm and ask about their agreed value coverage for collector cars. They may be the most liberal of this type of insurance (or so I've been told).

 

[Steve_S]

Doug, I got the exact opposite from Grundy which is part of the reason I chose them. They gave me the official definition of pleasure driving, and then unofficially told me that noone really checks on it anyway, it's just a way to keep people from using their car as a daily driver but insuring it on a classic car policy.

 

[jaybird]

[ QUOTE ]
Doug, I got the exact opposite from Grundy which is part of the reason I chose them. They gave me the official definition of pleasure driving, and then unofficially told me that noone really checks on it anyway, it's just a way to keep people from using their car as a daily driver but insuring it on a classic car policy.

[/ QUOTE ]

That's pretty much what Hagerty told me. And implied that the restrictions aren't really checked, wouldn't be feasible to go about the country popping in on people to see if their LBC was IN the garage or parked at someone's poe.

Although I think your rates with Grundy are a little better than my one-car rate with Hagerty.

 

[Steve_S]

JB, The rate I quoted is purely from memory, which is spotty at best. If you're interested in the real number I' be happy to look it up for you.

 

[jaybird]

I think I'll just give Grundy a call. I pay $85 a year for $4000 'agreed value.' But I need to bump that up to $6000, as soon as my 'body man' writes me up an appraisal.

 

[78MGB]

I think you can go online and get a quote at their website. Both Hagerty and Grundy. Do not know if online quote would be the same as phone in quote or from your daily driver insurance agent going through Hagerty or Grundy. Anybody know?

 

[Steve_S]

JB, I just looked it up and I'm paying $224 per year on three cars (haven't got the bill for the 4th yet). This is for about $35K agreed value.

 

[jaybird]

Yikes Steve, that's a lot more reasonable than my $85 for $4000. I'm calling Grundy!!!

Thanks!

 

[Bster]

Thanks for all of the info. While I don't believe they would check the mileage or if the car is garage kept during the normal process of coverage, I would hate for the B to be stolen or wrecked and have them deny the claim because of some fudging of the stipulations. I will check out "agreed value" coverage.

 

[dklawson]

Good luck Bster. Again, I have no experience with State Farm but was told they may be the compromise you're looking for to have agreed value coverage.

The quote I got from Grundy was better than what I got from Hagerty, but my discussions with them convinced me that I'd be safer with Hagerty. Hagerty specifically told me that the occasional drive to work or evening out on the town was never a problem. The guy at Grundy told me specifically that the occasional drive to work would be excluded. I'd hate to call them and have to report an accident that occurred at 7:30 a.m. on a Tuesday.

 

[Geo Hahn]

[ QUOTE ]
...I'd still encourage you to call State Farm and ask about their agreed value coverage for collector cars. They may be the most liberal of this type of insurance (or so I've been told).

[/ QUOTE ]

Here is a quote from a State Farm agreed value endorsement 6171BC ANTIQUE OR CLASSIC MOTOR VEHICLE (the use of caps and italics is theirs, not mine):

"COVERAGE UNDER SECTION I - LIABILITY - COVERAGE A AND SECTION II - MEDICAL PAYMENTS - COVERAGE C APPLIES ONLY WHEN YOUR CAR IS USED IN EXHIBITIONS, CLUB ACTIVITIES, PARADES OR OTHER FUNCTIONS OF PUBLIC INTEREST AND OCCASIONALLY FOR PLEASURE AND BUSINESS."

The endorsement then goes into the coverage for collison and comprehensive which appear to not carry the above restriction. Reading in part:

"The limit of our liability for loss to property or any part of it is the lower of: 1. the actual cash value or 2. the cost of repair or replacement.

You and we agree that the actual cash value is the amount shown on the declaration page..."

They require photos and a professional appraisal when the endorsement is put on the policy, after that I have had no problem periodically increasing the agreed value (with just a phone call) due to LBC inflation.

I won't mention what I pay as rates vary so much based on where you live, driving record, your age, etc but I found the cost to be very low.

The big advantage for me was that it kept the liability portion under my umbrella coverage with State Farm whereas coverage with another carrier would either not get the car under the umbrella policy or would greatly increase the rate on the umbrella.

Your best source for the info you need to make an informed decision is a competent insurance agent, either independent or representing a carrier.

Some love State Farm, some don't. I am not recommending them nor wanting to begin a discussion of them or any other insurance carriers... just offering a look at the policy language they use.

 

[Bster]

Thanks again. Very helpful.

 

[Howard_The_Duck]

I believe mom (Randi) has 17 of the family's antique cars on State Farm. Im not sure the dollar amounts of coverage, but she is very happy with the price and the service.

 

[Steve_S]

17 of them? How many are there?!?!?

 

[vagt6]

"Actual cash value" (ACV) refers to a depreciated value in insurance policy language. ACV claim settlements are what owners of antique property tend to avoid, since the depreciated value of an old/antique object represents a fraction of the object's retail market value. ACV = replacement cost minus depreciation for age and use.

For vehicles, "Agreed amount" or "stated amount" comprehensive and collision normally provides coverage for a specific, dollar amount (often obtained by appraisal). The older the vehicle, the greater the depreciation factor.

So, if you want to insure the full value of your car, do NOT purchase solely ACV comprehensive & collision coverage. Often, the depreciated claim settlement for antique property is next to nothing.

Geo's example above shows an important exception. His policy language states that his ACV coverage is equal to a specific, dollar figure on the policy declarations page. Most auto policies do not have such a clause.

It almost takes a lawyer to interpret these policies. Be careful . . . be sure your Agent understands exactly what you want.

 

[Jack_Long]

Try American Collectors Insurance in Cherry Hill - I have a $5K agreed value full coverage policy on my 74 B, historic tags, for $55 a year.
Phone: (800) 360-2277
Fax: (856) 779-7289
e-mail: info@americancollectors.com
Regular mail:
P.O. Box 8343, Cherry Hill, NJ 08002
Overnight mail:
498 Kings Hwy. North, Cherry Hill, NJ 08034