Hot Rod Insurance Questions

I'm not quite to the point where I need to purchace insurance, but I'm curious as to how it will work. If my car (that I poured my soul into) is damaged, will the insurance company write me a check to fix it myself, or will I have to carry it to a liscensed shop to have it fixed. I'll be damned if I'm going to turn my car over to some incompetent body man who does half-ass work. I know run-of-the-mill auto insurance will require the latter, but is there special insurance companies out there for guys (and gals) like us that will pay us to fix it ourselves?

Don't know how this would work for you, but here's what I do.

One of the things I found out several years ago was that my homeowners insurance would not cover a car that was sitting in the garage in the event of fire, wind damage, vandalism, theft etc. As you all know when your building a car you can have a HUGE investment sitting in a not currently running car.

My insurance company allows me to carry comprehensive only on the car while it's being built (they have to at a minimum put liability on it for one day, then they suspend the liability and keep the comp in effect). It costs about $25.00 a year per car, and the peace of mind is well worth it (even though I know I likely would not get all of my investment back, I wouldn't loose everything either).

Another bit of advice, in case you ever do have to turn in an insurance claim, keep all of your receipts and once the car is completed have it appraised so YOU have some documaentation to show the insurance company.

The couple of instances over the last 25 years that I have had to put a claim in (by that time the cars were both running) it was get an estimate (in one case they sent an adjuster out) file the claim and I received the check.

By the way the insurance company is ALLSTATE who has been very fair with me over the years.

Mike brings up a great point. Lots of guys THINK their homeowners will cover their butt if a non-drivable car is damaged, say in a fire. WRONGO!!! Like Mike, I have my projects covered for AGREED value. I even have a rider for COMPONENTS, e.g. enines, wheels/tires, etc. that aren't mounted on a car. While I don't recall the fee for this, it's pretty reasonable, and darn cheap if I had to collect. I want to emphasize another point. To protect yourself from getting short changed on a settlement, you must get a policy that is written for AGREED value, whatever the status of your toy car. That is an important term. Any other that sounds SIMILAR is NOT in your best interest. AGREED value means you and the insurance company agree on a value for your car (often requires an appraisal to justify your point of view). That means that if your car is a "total loss" you'll get paid the full amount agreed to. Let's say it's $20k, they calculate premiums based on that, you pay your premium. (Most "Collector Car Policies" will have mileage, and maybe some other restrictions in exchange for a moderate premium when compared to your daily driver). You have a wreck.:CRY: That doesn't mean they'll cover repairs costing $20k, mainly because, even damaged, the car has some salvage value. Their TOTAL obligation to you is limited to the agreed amount of $20k, so if "someone" gives them a bid on your damaged car of $4k, then they will pay up to $16k in repairs. Now, you can "buy" your own salvage for the highest bid (they can't arbitrarily take your car away from you) and take the settlement check for the balance and do whatever you want with it. If you don't get an AGREED value policy, you and the insurance company may state a starting value, they'll base the premiums on that amount, and you go along fat, dumb, and happy. Then, the dreaded accident happens. That's when you find out, because the legalese in the policy, if you even read it, didn't get through to you that they will run a depreciation on the original value stated and then only be liable to you for that depreciated value. You need to make sure you cover your butt on this point with some very clear examination of the policy terms.

Now, Andy, you made some statements that are made by a lot of people, but are grossly wrong. I'm not trying to bust your chops here, just emphasizing a point that drives me nuts. I used to be in the collision repair business, and worked hard for my customers in trying to keep them from being influenced into doing things that were not in their best interest. No insurance company can FORCE you to take your car anywhere for repair that you don't want to. They may put some provisions, usually financial, in your policy to INDUCE you to go to their preferred shop, but they can't force you. You need to remember, the insurance policy is a contract. In that contract, each of you, the policy holder and the insurance issuer, agree to do certain things. This is why a prudent insurance buyer will shop around for terms, not just the lowest premium. It's just like everything else, the lowest cost is NOT always the best. But, insurance is a pain in the butt to shop for, and the policy language is very complex, so most people dose off and fall back on the one thing they understand. How much comes out of their pocket. Well, the other perspective is, what you may save on the premium, you could easily lose more if a settlement becomes necessary. It's another pay me now, pay me later thing.

Even though the insurance company can't force you to go to their preferred shop, they are very, very skilled at making people think they have the "power" to do that. That's what makes folks like you make the statements you did. They're so adept at it that, statistically, they are successful at "steering" repairs 83% of the time. They are VERY effective at using intimidation, and consumers are VERY effective at being weak because of fear. It's the thing that has made a mess of the medical universe, and collision repair looks like it will go the same way. Some day, consumers will give up completely, their rights to choose who will do their repairs through negligence. In the mean time, make the most of your freedom of choice.

You may still want to be familiar with the shops in your area that would do repair on a rod correctly, even if you think you want to fix the car yourself. In order to arrive at an accurate amount for the repair cost, the insurance company will have an appraiser/adjuster who works on their behalf, who will interact with a "repair professional" to determine the correct amount. As an amatuer in that dynamic, if you do the negotiating on your own behalf, you may underestimate the amount of repair and end up cheating yourself. On the other hand, if you try to go too strong, the insurance people may dig in their heals and refuse to settle with you until you become "reasonable". Each state has an insurance commisioner whose job it is is to make sure the insurance industry treats the consumer fairly. Often times, the insurance commissioner's office can be helpful if an insurace company is being unreasonable/arbitrary, and violating the terms of it's policy (contract). But for something where you look like the unreasonable party, they won't lift a finger to help you.

I know they can't force me to go to a particular shop. What I meant to ask was will they require me to take it to ANY shop. The point I was trying to make was that I don't want anyone else working on my car when I'm not around, and I was wondering if the insurance company would cut me a check to fix it myself.

Well....I'm sure glad to have Uncle Bob and Streets around to explain things so I can understand them...THANK YOU !...:) :) :)...Al..PS. OOPS !...Forgot to thank Mike P.....You cleared things up a little too....

Uncle Bob....I'm thinking that the era..the adjuster at the time..and what mood everybody is in makes a big difference when it comes to insurance claims...What do you think.???. I'm in such a good mood today I won't even go into detail how much I loath Allstate because of the low life way of doing business I have encountered with them in the past...DAMN I'm starting to rant...." I held a grudge for the seat belt that would'nt budge "...Chuck Berry.......Call it unfinished business I guess...I still have the urge to get even....I mean its sorta like trying to figure out what mood the boss is in when you go to ask for a raise...I always tried to be Mr. nice guy at the getgo when dealing with adjusters.....Some are pretty smart at playing their mind games.....Thanks again Uncle Bob.......AL...:) :) :)

Andy, based on your follow-up I may not have made it clear in the previous post. If you and the insurance company can come to an agreement on repair costs, and there's no lien holder on the car, they have to make the check out to you as you're the named insured.

One pitfall in that is that they may suspend the policy until you demonstrate that the car is repaired. Then, it'll probably be the same process over again to establish value, and policy amount.

Al, you don't want to ask me what I think of the insurance industry. We only have a 10k character limit on posts!!:LOL:

Actually, there are some "good" insurance companies out there. Certainly not the two that advertise heavily and that they have the most "competitive rates". They make your buddies at Allsnake look like saints. One of the problems for a consumer is that an insurance company can be "good" one year and then turn "bad" the next if they "lose" a bunch of money on claims.

You're right about the process being influenced by the insurance rep (usually not your agent) who handles the claim. A knowledgable and businesslike one can make it go smoothly. A rooky or a crank can make it a living hell.

I got along pretty well with most of the field reps I had to deal with because they knew (once they got to know me) I wasn't going to cheat the customer just to save them (the insurance company) money. And they had to learn I wasn't going to cheat the insurance company either. As obvious as that sounds, it's an unfortunate reality that there are a lot of repair shops out there that will play "games" because they think that's how it has to be done to make a buck. Having learned that there are dishonest shops, the insurance folk are leary. Fraud, both from repair shops and consumers, is the biggest hole in their bucket. Unfortunately, when they draw up their policy and training manuals, they start from the assumption that ALL shops are dishonest. They of course deny that, but I judge by actions not words. Again, an experienced insurance rep will know the difference between a fair shop and a crooked one, and can "alter" the process as far as the company's policies will let him or her. With the exception of the two companies noted above.

Uncle Bob..."ALLSNAKE"....That put me even a better mood for the day...PIMP-CO..(PEM-CO) was my other demise....I've got Farmers for my property..You couldn't ask for a nicer group to work with..The three reps I have dealt with in the last fifteen years have been fair and helpful...Al...

While I think the insurance industry should have a major overhaul it is much like the current tax system and I don't see it happening in my life time.

IMO the 3 things that make or break an insurance experience are the agents, adjusters and customers.

In the case of the agents, you have to find one you can TRUST and work with. I almost dropped Allstate about a year ago. My agent didn't seem to have the time of day for me or questions, treated me like he was doing me a favor every time he talked to me, and to top it off had insulted my wife. After checking around a little and cooling off a bit, I decided to check with one of the other allstae agents in town. After sitting down with me for a couple of hours, I ended up with more insurance AND a lower premium.

As far as adjusters go Bob pretty much hit the nail on the head. My experience with adjusters is that in MOST cases if you are reasonable they will be too as least as much as their guidlines will let them be (but like agents there are also bad ones).

Which brings up my final point, you as the customer. A lot of us in this hobby/lifestyle tend to believe that we have top end show cars when it comes to placing a value on them. Be realistic in your assesment of waht the car is worth (and in many cases not afraid to admit that if you put the car on the market today you likely couldn't get out of it what you have spent, espeically if you have built it yourself rather than buying one that is already completed). This goes back to the statement I made in my first post about having the car appraised when it is completed. At that point it's time to make the decision on how your going to drive the car. (At one point I had 5 cars on a stated value insurance policy, but I found out in the first year that I liked to drive them too much, and the milage limitation was unrealistic for me.) What I finally ended up doing is going with liablilty and comprehensive on almost everything, knowing full well that if I get in an accident that is my fault, I lose, but thats the choice I make for the premium I pay (after also admitting that what my cars are is nice quality drivers). I'm also in a position that if that ever happens, I have other neat cars I can go home and get into.

You have to decide whats best for you and what you're willing to pay and then do a lot of shopping.

An old phrase just popped into my head....Its not so much WHAT you know....Its more like WHO you know.......

In my case it was more like shopping around and finding someone who put my requirements ahead of his commision checks.

Lesabre.....My D-Derby partner had a Buick LeSabre that got hit by a Deputy Sheriff in the left rear quarter.....A slab of bondo weighing about twenty pounds fell onto the road into the snow..The cop didn't even notice the bondo because it matched the dirty snow..The county paid Derby Dan mass bucks for a car on the way to it's destruction at the race...Buick LeSabre tank + snow + Law enforcement +-stupid cop ===$$$$$$$$$.....

Streets.....Yeah I know and yeah I do...68 Deville...66 Wilcat...71 98...all under sheds & in running shape...The Olds 98 is a 4dr Hdtp..I love it's story...A guy we called Downer Don owned it...The timing chain needed replacing...He tows it to my old shop..(this happened 20 ago)...I think he owed me about 60 bucks..He comes and asks if the car is ready and is agog cause he found a C note on the floor at the State Ferry Station in Seattle..( now back then I had never had a C note let alone many or a few fifties)..So he asks how much he owes me and I just stick out my hand and say.... well.......He starts yelling that he is a real dumb ass because he should have told me he found a twenty !!!!.....Hey its Sunday and your stupid car is done.....give me that C note.!!!!..Tens years pass...One day this huge car come bombing down my drive..Its Downer....I'm here to get my C note Back!!!!!..... Now I've got a 71 98...On warm days we tear down the road scaring the hell outta rice burners and what ever else is in the damn way....I love it..The 455 cooks along without a hitch...Thanks Downer..old buddy old pal....In fact I saw him in a casino near here a couple months back and he was bitching his teeth out about how he wished he still had it...Sorry Downer.....No can do...I parted a 72 98 last year...The 455 is going into my 72 half ton...Chev of course....Al..:) :) :) :)

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