The Right Plan for a Pseudo-collectors Car

[parkusmaximus]

I've got a complicated situation. Anyone who knows a lot about auto insurance up for lending me some advice?

Here are the details: My brother-in-law is very kindly lending me his 1984 BJ40 diesel, Australian Land Cruiser for several years while I am in grad school. Land Cruisers are a bit of a collectors item - he purchased this one for $15,000. I want to be certain that I can repay him that $15,000 (minus depreciation, perhaps), in the unlikely event that the car gets totaled. I'm worried that a "normal" auto insurance policy might undervalue the car. However, collectors insurance, as I understand it, has many stipulations that I cannot meet, at least as I understand it. Namely, I don't qualify for collectors insurance because I will be driving the Cruiser more than just to and from auto shows and it has some rust on the body -- or at least that's what USAA told me.

Are there any ways I can get a policy and be sure that, if the car gets totaled, I won't just get a measly few grand and be stuck owing my brother-in-law the difference?

 

[djs]

You need what is called a stated value policy. Not all carriers sell them, most do. Some agents are not that familiar with them either.

Stated value policy is exactly that though, you say the car is worth $15K, you pay an insurance rate based on that, then when a loss occurs, they evaluate it differently then a normal car. This does not mean that if you have a total loss, it will automatically be paid at $15K, just means they will look to see what makes it more valuable and pay up to $15K.

As long as you don't overinsure the vehicle and then go wreck it, they work exactly like they should.

Dan

 

[BlockO]

You need what is called a stated value policy. Not all carriers sell them, most do. Some agents are not that familiar with them either.

I've never heard of a stated value policy. But from the way you described it, it sounds very similar to agreed value coverage. Is it the same thing with just different terminology or is there a difference between the two?



Parkus, you are correct about classic auto policies. They don't want vehicles that are used on a regular basis. They usually want to see that you have at least
vehicle for every driver insured on a regular auto policy before they will insure it as a collector car.

 

[djs]

They are similar. Agreed value policies tend to require an appraisal or some form of valuation upfront.

Over 15K, you almost always need an agreed value policy, under its not as important, at least not in my experience.

Dan

 

[Aram Fingal]

The other issue you are going to want to clear with any company you go with is the ownership situation. Is the vehicle going to be registered in your name while you "borrow" it?

 

[AZDave]

Who needs to listed as named insured: the owner
The lucky brother in law needs to be listed as the driver
Hard to insure an auto owned by someone else.

 

[parkusmaximus]

Fantastic! I will look for a stated or agreed value policy.

Regarding ownership, my brother in law is going to transfer the title to me so that I can get insurance without any issues.

 

[NCSU INS GUY]

He doesn't have to do that. You can list him on your policy as the owner.