collector car insurance

**carguy** · #1 02-02-2009, 06:40 PM

I have been comparing quotes for collector car insurance. All agree to pay an agreed value for a total loss. However, in most cases the loss will be only partial. My current policy excludes a claim for diminished value in case of a partial loss. See: diminished value Has anyone had any experience with this or advice?

Thanks

Johnny Horsepower · #2 02-03-2009, 06:44 AM

[ QUOTE ]
I have been comparing quotes for collector car insurance. All agree to pay an agreed value for a total loss. However, in most cases the loss will be only partial. My current policy excludes a claim for diminished value in case of a partial loss. See: diminished value Has anyone had any experience with this or advice?

Thanks

[/ QUOTE ]

Interesting! Who is your current carrier. (incase it's mine too

)

Kim_Howie · #3 02-03-2009, 06:39 PM

Your pol. excludes it because your collector cars don't go down in value. If you had org. car with org. paint there would be dimished value. But restored car it wont make any differance.

**Mr70** · #4 02-03-2009, 07:09 PM

Kim is my insurance agent!!

**mockingbird812** · #5 02-03-2009, 08:24 PM

Good info Dave. So, if I understand correctly from the link provided above, when your car (let's say original paint/sheet metal car) is damaged, but repairable, you want to ensure that, in addition to original OEM parts are used, that you receive an additional reimbursement for "diminished value". I.e., to cover the fact that the original paint and original sheet metal are lost and therefore the overall value of the car is now diminished relative to its value prior to the accident.

**carguy** · #6 02-03-2009, 09:07 PM

Let me more specific with a hypothetical example. Suppose your collector car with it's original born with drivetrain had an engine fire. For this example lets assume nothing else was hurt, but your engine which was a total loss.

According to my interpetation your insurer would pay to replace the engine with probably a correct casting number unstamped block. They have then met there obligations according to the policy unless you have dimunitition in value coverage. We all know that having a replacement engine in that car is going to lower the value drastically over the born with engine. Without dimunition of value coverage you would receive no additional compensation for this result. The same example could be used on any part of the car that has special value because it being original irregardless of if the car has been restored or not.

At some point the expense to insure gets out of hand and we all need to self insure some of the risk. My point is to make others aware of this coverage gap so no one is taken by surprise.

**rubbinisracing** · #7 02-04-2009, 12:02 AM

Good food for thought...I think we are on our own as far as diminished value coverage goes for "Survivor" type cars, original sheetmetal, born with drivetrains and the like. Its part of the risk collectors/owners must understand and prepare for. Same goes for the documentation and provenance...if a house fire or major disaster would destroy these items the insurance doesn't cover them but a substantial loss would have occurred. You could obtain a "Lloyds" type policy but I'm sure the premium would be prohibitive and can you imagine the education process to bring the underwriter(s) up to speed.