Delorean Insurance Question

[JSzabo]

My insurance broker and I was talking about my Delorean and how much it would be for 6 months and how much usage it will get.

Here in Illinois I have the Delorean on a Antique/Classic Plate with Expanded Usage.

So I can only drive the car from: Vehicles displaying these plates during the months of January-March and November-December may only be driven to and from an antique auto show or exhibition, service station or demonstration.
Vehicles displaying these plates during the months of April-October may be driven on the highways without being subject to the restrictions of a standard antique vehicle plate.

This has a big impact on how much my insurance is for the Delorean.

So my question is should I put the value of my car at $50k? Or should I do more?

My 6 month premium is only about $140. I thought that was really good. That's why I was thinking of moving it up to $60k. The reason I'm getting this premium is of the way I have it licenced and can really only be driven "freely" from April to October. With the small reasons from november to March. Not that I would really want to drive it during the winter.

What does everyone think? Move up to a higher valuation? Or not.

[Michael]

I have my car under an "Antique" policy, but not antique plates, so there are no restrictions on where and when I go. The mileage on my policy is limited but my yearly driving comes nowhere near close to exceeding that. I have an agreed value of $80,000. If my car is deemed a loss, no questions asked.

You need to check the values of cars in similar condition and be honest with yourself as to how much money it would take to replace that car 100%. I got zero flak from my insurance at $80k. I had to send them pics but I sent more than they asked for like pics of the undercarriage, suspension, etc. 50k buys what 25k bought 7 years ago, so the "$25k rule" is now the "$50k rule". Bear that in mind when you assess your car's value.

[Helirich]

I have my car under an "Antique" policy, but not antique plates, so there are no restrictions on where and when I go. The mileage on my policy is limited but my yearly driving comes nowhere near close to exceeding that. I have an agreed value of $80,000. If my car is deemed a loss, no questions asked.

You need to check the values of cars in similar condition and be honest with yourself as to how much money it would take to replace that car 100%. I got zero flak from my insurance at $80k. I had to send them pics but I sent more than they asked for like pics of the undercarriage, suspension, etc. 50k buys what 25k bought 7 years ago, so the "$25k rule" is now the "$50k rule". Bear that in mind when you assess your car's value.

Is your insurance a special policy with your normal ins. company? Or is it with one of the collector car companies? Did you start with you “agreed amount” less ten years ago and gradually raise it?

[Michael]

Is your insurance a special policy with your normal ins. company? Or is it with one of the collector car companies? Did you start with you “agreed amount” less ten years ago and gradually raise it?

I just "upgraded" with my insurance company (whom I have had for the past 18 years) a few months ago after another owner had a no fault to him accident that totaled his DeLorean and the at fault insurance agency(a well know multi million dollar company to boot) gave him flak over the value.
Before, I just had a normal full coverage policy which would probably value my car likewise if anything were to happen, so this way if anything catastrophic were to happen, no red tape. My insurance was the one who suggested the antique policy when I was inquiring about an agreed value. Now that I looked at it, there are no mileage or driving restrictions that I can see anywhere in the policy but like I said, I'm lucky to do 1-2k a year. Once I sent them some pictures and mileage statement, they had no problems with my $80k figure and it only bumped my premiums up 40 bucks a year. My old policy was $280 per year, now it's $320.

I would HIGHLY suggest that everyone that has their car insured inquire about an agreed value (and an antique policy) to see if it's right for your needs.

[David T]

You are dealing with 2 kinds of rules here. One set is imposed on you by the way you plated and registered the car, the other is the rules your insurance policy sets. You must comply with the most restrictive set of rules. $140 is VERY inexpensive but you do have a lot of limits to your use. As long as you can live with them (and not file a claim outside the limits) you are good. Be aware each State has it's own special rules and limitations and that also applies to the way the insurance companies in your State can operate. It is impossible to compare yourself with anyone that is not in your State.
As to your second question, ask yourself what it will cost today to replace your car with another in the same condition as yours is right now assuming your car is totaled or stolen. You certainly do not want to under-insure but you should not over-insure either. Talk with your insurance company and make sure you understand the limits, deductibles, "Agreed Value" and other things like glass, theft of personal items, towing, etc. You should only insure your car with a company that specializes in classic/antique auto insurance. Make sure the car is still insured even during the winter at least for theft, fire and damage, you don't need liability when it isn't driven and that is the most expensive part. $50K is a good number if your car is in good (#2) condition.

[Michael]

Looks like I am going to disagree with the guru (again). Don't take his word on 50k for a #2 car. Don't take my word either. If something happens and you need to replace your car are you going to wait around till a unicorn deal shows up? You are going to a vendor so my advice is call the vendors and see what a #2 car costs (assuming you have a #2 condition car). 50k will not touch it. You will most likely be in the 60k+ range and maybe even 70.

Also, liability is not the main cost of insurance. Usually, it's comprehensive and/or collision that shoots the rates up but to say one is more than the other depends on so many factors and agencies. For a 18yr old driving a 20-year-old Corolla, liability may be more but for a 50yr old with a clean driving record insuring a DeLorean, collision will be more expensive (ask me how I know).

Like I said in the second post, you must be honest and fair with yourself as to how much it will cost to replace your car, and unlike the guru advised, it's not unwise to "overinsure" your car. The difference in premiums between agreed value of 70k vs 80k is inconsequential but the car you do source as a replacement may need 5-10k worth of details to make it right in your eyes.

When my insurance asked for a few pics of my car, I sent them a freaking photo album to document the condition of my frame and undercarriage because very few cars will meet that level and any car I replace it with (unless I get super lucky), will need a bit of effort to bring it up. That's just my situation though. Just be honest with the condition of your car and be honest with how much it will take to replace it.

Also brings me to another point of disagreement...choice of carriers. If guru thinks I should drop my local insurance that has all my cars, motorcycle, and home covered for some Hagerty brand, nope. I have almost 20 years with All-State. My local agent is a friend and not a heavy accented voice on a phone. Everyone's circumstances are different and for guru to paint everyone with the same brush in not only coverage, but choice of companies is irresponsible generic advice.

[David T]

My answers to your questions has to be "generic" because each State has different rules. You MUST talk to your broker and/or insurance company who knows the rules in your State and can advise you on your particular situation. Over-insuring can set off all kinds of "red flags" and require a LOT of documentation. If you think it will cost more than $50K to replace your car and can prove it, insure it for more. Be prepared to prove that your car is in such condition and to replace it with one in similar condition costs that in today's market. As for what each part of your insurance costs, it really doesn't matter, my main point was that even if you are not driving the car, you should keep insurance on it to cover other hazards. Here in New Jersey, the rules are such that unless you insure with an antique/classic company, you cannot get "Agreed Value" and it is very expensive compared to classic insurance. Also regular insurance companies will not give you anything for "diminished value" claims. Insurance is a complicated subject and you will not get all of the information you need here.

[MrChocky]

My answers to your questions has to be "generic" because each State has different rules. You MUST talk to your broker and/or insurance company who knows the rules in your State and can advise you on your particular situation. Over-insuring can set off all kinds of "red flags" and require a LOT of documentation. If you think it will cost more than $50K to replace your car and can prove it, insure it for more. Be prepared to prove that your car is in such condition and to replace it with one in similar condition costs that in today's market. As for what each part of your insurance costs, it really doesn't matter, my main point was that even if you are not driving the car, you should keep insurance on it to cover other hazards. Here in New Jersey, the rules are such that unless you insure with an antique/classic company, you cannot get "Agreed Value" and it is very expensive compared to classic insurance. Also regular insurance companies will not give you anything for "diminished value" claims. Insurance is a complicated subject and you will not get all of the information you need here.

Nice evasion. Here's what you said:

"$50K is a good number if your car is in good (#2) condition. "

It's not. As Michael pointed out, a sorted car will now cost you $55-$60k. And many owner here have done considerable work on updates/upgrades etc. The point is replacement cost - what will it cost you to recreate your car - this is a different value to what you might get selling it. My own car I don't think should be insured for $80K, but there's plenty others that should be.

[Michael]

Be prepared to prove that your car is in such condition and to replace it with one in similar condition costs that in today's market..

What thread are you reading? Agreed value means that both the insurer and insured both agree on the car's value before the policy is even written. The value that you must "be prepared to prove" has already been established and whatever the insurer requires be it an inspection, written appraisal, pictures, etc., has been met. How are you going to prove your DeLorean's value AFTER it has been stolen? after it has been burned to the ground? Once the value of the car has been established, policy written, and dues paid...THAT'S IT! That is why I recommend every owner look into an agreed value to see if it works for them. It may save you a lot of headaches in the future when the at fault insurance company uses ebay's search of the cheapest BHCC car available to ascertain the value of your car.

If you think it will cost more than $50K to replace your car and can prove it, insure it for more

Sound logic

"Keep a fire extinguisher in your car. In the event of a fire, you can use the extinguisher to put the fire out."

[JSzabo]

Is your insurance a special policy with your normal ins. company? Or is it with one of the collector car companies? Did you start with you “agreed amount” less ten years ago and gradually raise it?

I guess it’s a special policy. They asked what I thought it was worth. I asked DMC and they said $45k-$50k. So I told them $50k. I haven’t moved it up. Because I’m just starting it.

Right now my car is being stored in a heated garage and I’m not driving it. I was taking with the wife and I may bump up the coverage to $70k when I start to drive it. This original cost was for “Full insurance”. I believe this is an agreed value. And I basically send a album of 20 pictures. I would give my car a good right now. I still have some frame fixing to do. No rot at all just peeling. And don’t what and problems. And a redo of the AC system.