NTBA

Choosing The Right Specialty Car Insurance Company
And Insurance Agent For You

Choosing the right specialty car insurance policy is much like buying a new automobile - you want the vehicle
to fit your needs and lifestyle, but at the same time be within your budget. And while no one expects to be
involved in an accident or to have a claim, having an insurance policy that doesn't completely protect you and
your assets can only make matters worse!

If you look for an insurance policy designed from the ground up to cover specialty cars, you should find
substantially lower premiums as compared to regular automobile rates, and you should find a policy with
coverage's that are unique to specialty cars. Many collector car policies, for instance, have coverage
for spare parts, and some also include trip interruption in the event of an accident, and they will usually
have either Stated Value* or Agreed Value** coverage. For collector cars, you definitely want a policy that
provides you with Agreed Value Coverage. Another important thing to remember when purchasing specialty car
insurance is to ask about the restrictions and requirements that go with the policy. Some companies have
very specific rules on who can drive your specialty vehicle, when, where and how you use your collector
car and where you store it when it is not in use. Violating these restrictions could void your coverage!
So be sure to ask the questions.

Check with the agent to see if they have bundling packages that will save you money on your overall insurance
premiums. Often companies will offer discounts when you place other lines of insurance with their company such
as homeowners or life insurance along with your automobiles. Not only will this save you time and money it will
also close the gaps in coverage you might create by having various insurance policies with different companies.
Remember that most insurance agents work on commission, and the more they sell you the more money they make.
If an agent tells you in order to write your car insurance you must also purchase their homeowners insurance,
that is not legal. In the industry that is called "tying business" and if an agent is asking you to do that first,
walk out of their office and second, report the incident to your State Insurance Department.

Make sure you understand the coverages that your policy provides. What is included in your policy?
If you haven't checked lately, it can't hurt to ask your agent for a personal insurance review
just to make sure you know all of your personal assets are properly covered. Should the unthinkable
ever happen, you would never regret the decision to properly protect your investment! If there are
details about the policy that you don't understand, be sure to talk to your agent and ask as many
questions as you need to make sure you completely understand what you are purchasing. You owe it to
yourself and your family to find a company who really understands car collectors needs and will help
you select the proper coverage for you, not just sell you a policy. Being the cheapest isn't always
the best. Make sure the insurance fits your needs not just what they want to sell you.

10 must-ask questions for your insurance agent
before you decide to buy from them.

1. What company or companies do you represent?

2. What are the A.M. Best ratings for the companies that you represent?
For A.M. Best ratings information, please visit their website. http://www.ambest.com/ratings/guide.asp

3. What are you doing to stay current with what is happening in the insurance industry?
Have you earned any industry designations?

4. What are your office hours and are you available after hours for insurance
related emergencies that I might have? If so, what is the telephone number?

5. Do you provide personal insurance reviews for your customers on a regular basis?
How often do you recommend they be completed?

6. What discounts are available that might lower my specialty car insurance premiums?

7. What precautions does your agency take to protect my personal information?

8. Do the insurance companies you represent have 24-hour claims service?

9. Do you represent other companies who sell specialty car policies that offer
the same coverage for a lesser premium?

10. Why should I buy my insurance from you?

Review their answers to your questions then ask yourself these questions

How well did they answer my questions?
Did I feel they just told me what I wanted to hear or did they seem sincere in their answers?
Do I feel they have my best interests in mind or do they just want to sell me a policy?
How does the office look, is it neat and professional?
Is this the right agent for me?

Only when you are comfortable with the answers to all of these questions, can you make a decision on who should be your agent.

The insurance company you end up choosing and its representatives should answer your questions and handle
your claims fairly, efficiently and quickly. The Insurance Department in your state will be able to tell
you if the insurance company you are considering doing business with had many consumer complaints about its
service relative to the number of policies it sold. Go to the following website to locate your State
Insurance Department website: http://www.naic.org/state_web_map.htm

*Stated Value or Stated Amount Coverage

This form of policy is frequently and easily misunderstood.

It is often used on collector car policies. Most insurance agents typically represent it as being the same as "Agreed Amount." It is not! The "Stated Amount" form states the insurance company will pay the lesser of:

The "Stated Amount" helps determine the premium cost.

It does not guarantee you a settlement amount that reflects the value of the car when a loss occurs. The "Actual Cash Value" language allows the claims adjuster to settle your loss for an amount less than the "Stated Amount".

**Agreed Value or Agreed Amount

This is the only policy form guaranteeing you in writing what amount you will receive if your "Collector Car" is stolen or totaled during the policy period.

Note there is no "Actual Cash Value" clause in the form. The "Agreed Amount" form states the insurance company will pay you, the lesser of:

1. The "Agreed Amount," or
2. The cost to repair the covered auto, not to exceed the "Agreed Amount".

The "Agreed Amount" should be reviewed carefully with your agent before the policy is issued. Your agent and you must agree together upon the "Agreed Amount" before the policy is issued.

The "Agreed Amount" should represent the true market value of the car at the time the policy is written. If the market value changes during the policy period, the "Agreed Amount" can be changed by endorsement. Before policy renewal each year the "Agreed Amount" should be changed, if necessary, to reflect current market value.

You want to know with whom you are doing business. Some insurance agents sell for just one company, which is called being a "Captive Agent" while other insurance agents sell for many companies; these agents are called "Independent Agents". Knowing who you are doing business will allow you to investigate that companies financial strengths and Insurance Department complaint records.

An A. M. Best's Financial Strength Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation, of a company's balance sheet strength, operating performance and business profile. The Best's Financial Strength Rating (FSR) is an opinion of an insurer's ability to meet its obligations to policyholders. You want a company that is rated A or higher.

There is a vast curriculum of continuing education that is available to insurance agents. Investing their time and efforts in continuing education shows professionalism and allows the agent to keep current with the ever-changing insurance industry.

Knowing when and how you can contact the agent/agency is important; you never know when you will need their assistance in an emergency.

By conducting regular insurance review, you and your agent can determine if an adjustment in your coverage is necessary to make sure your assets are fully covered. You should have an insurance review every year to two years.

Many insurance companies offer discounts on insurance; it doesn't hurt to ask what is available to you. Discounts are great; just make sure you are not reducing the amount of your coverage in the process.

With identity theft so widespread these days you need to know that your personal information is safe. Does the agent have procedures in place that will protect your personal information? Do your agent and insurer follow strict privacy policies? Who do they release your personal information to?

You never know when a claim will happen, knowing if your insurance company has 24hr. claim service can help you out in the middle of the night if you ever have the need for it.

Agents that are considered "Independent" have many companies they might place your insurance coverage with. Check to see if they have more than one company that offers the same type of coverage you need, there may be an advantage of one over the other.

This is the agent's opportunity to sell you himself or herself over another agent. How bad do they want your business, how will you be treated and what can you expect from their agency in the future.

Submited by: Graig Meads