Take Note!
A Crawford Educational Services publication
August 2010:
Collector Cars Still High Priority
Despite the downturn in the economy in 2008 and 2009, the need for coverage on high value and antique autos has remained strong, reported Phil Gusman in the July 29, 2009, issue of National Underwriter. Specialty cars, ranging from souped-up race cars to imported sports cars worthy of James Bond, require more than just the standard Personal Auto Policy coverage. Many such autos are insured under policies written by specialty insurers, and claims may be settled on a "stated value" basis where the replacement cost is agreed to between the insured and the insurance company before there is a covered loss. However, values do fluctuate, and policies may take that into account.
Gusman cites a specialty underwriter who notes that one internationally known insurer "is still binding and issuing policies, albeit with lower values." People may be buying fewer collector cars, Gusman said, "but for a lot of collectors, these cars are among the most important parts of their lives. Thus, even in a bad economy … a collector will likely sell other possessions before giving up their collector car, making for a 'relatively stable' market." He notes that many specialty car owners are very loyal customers for the few insurers who will write such coverages.
Whether it is a new $125,000 Ferrari, Lamborghini or Maserati, a 1932 Rolls Royce, or a 1920s Model-T Ford, the specialty car market is not restricted to the rich and famous. It may include "old Hank down the street" who has kept his 1964 Mustang in pristine condition for the past 46 years, polishing it every Sunday afternoon before his once-a-week outing or a trip to an annual antique auto show.
Knowing how to understand the coverage and evaluate damage to such high value automobiles is part of the adjuster's profession. It is also part of what is taught at Crawford Educational Services, which offers classroom training as well as online claims education. Check out our class line up today!
