I think I found a better insurance option

Quite a while ago I commented on my search for better insurance options for my feature car in order to solve the issues of using a conventional auto policy that would pay based upon book value when that is likely much less than what feature cars with low mileage can realistically be purchased for. I am happy to report that I finally made some decisions and changed my insurance carrier to someone who seems more appropriate for covering my car. Although the coverage is not perfect I still consider it better than what I previously had.

My search was difficult because many of the well known classic car insurance carriers won’t insure a car under 15 years old. That’s due to the view that cars younger than that are still depreciating in value. Additionally, even places that insurance newer models won’t cover the Mustang for a variety or reasons or will cover it but only under very restrictive conditions such as it being part of a collection. I described that situation in the forums.

I had given up on the search until I read an article in the January 2006 issue of Mustang Monthly. The article titled “How To: Insure Your Mustang” covered insuring Mustangs of all ages and had a side bar specifically on late models. It had a quote from someone from Parish Heacock that said that they would cover late models once their owners had decided that limited use was OK even though the cars were in a condition to be used as daily drivers. I requested a quote through their Web site (which arrived very promptly via email) and was pleasantly surprised that I could save more than half of what I was currently paying.

Since my car is under 15 year, it is not yet eligible for an “agreed value” policy which would, not surprisingly, pay the amount agreed upon. It is a “stated value” policy which can be affected by depreciation and is largely defined by the current cash value of the car. So, although it is possible that the policy would still pay no more than my traditional auto policy did, I feel better that I am using an agent and insurance carrier that understands the collector car market and theoretically should be more open to being flexible when determining replacement cost. The policy saves money in return for imposing limitations on mileage driven (3000/year) and use of the car (pleasure only). It does require keeping the car in a locked garage when not in use but, unlike some companies, they will cover me if my car is left outside in scenarios such as when I am traveling and staying overnight related to a show event. I plan to reevaluate insurance again once my car passes that magical 15 year mark.