[DML] Re: insurance questions - Setting the record straight

["James LaLonde" <deloreandmcxii@xxxxxxxxxx>]

Okay first off, both Haggerty and Condon and Skelly, along with 
others such as Grundy, and AON Collector Car are specialty companies 
that insure only special interest vehicle (though they are 
underwriten by other big-name companies). Very few Collector car (or 
Agreed Value) policies use ANY rating factors other than the cost to 
replace the car. Age, Sex, Driving history, and credit have no 
bearing on these types of policy's pricing... only on whether or not 
you qualify for the program.

The Insurance industry on whole as had a rough decade. During the 
recent Economic boom of the 90s there were quite a few claims 
happening, that weren't being rated for initially (they can't change 
rates mid-term), and the industry was in a soft period in the 
underwriting cycle. Like the stock market, the insurance industry 
sees fluctuation in price and risk appetite.
Right now, we're in a hard cycle. Underwriters are very strict, and 
prices very high. Today that is mostly due to the complete lack of 
stable investment income. If Insurer cannot rely on the investment 
your premiums normally provide they have to rely on collecting more 
premium.
Honestly, 600-700 buck PER YEAR is a phenomenal rate for a sub-25yr 
old driver.

I might recommend you raise your COLLISION deductible. Comprehensive 
has very little impact on prices in most cases.

Despite what you have personally experienced - insurance companies 
are not baiting you with low price to raise your rates later on. Nor 
are they perfunctorily raising rates every year. All but a few states 
have laws required rate changes to be filed and approved with the 
state PRIOR to use, some states even have MANDITORY RATES. The 
Insurance commisioner in any given state approves only state wide 
changes. Your rate as a 2 yr old customer with an insurance company 
is the same as any identically classed (age, location, credit, type 
of car, etcc.) new customer - to rate two identically classed 
cusotmers differently is Unfair Discrimation... which is illegal in 
all 50 states.

Despite many misconceptions by the public, the insurance industry is 
not out to get you. The rates they charge are the rates that are 
actuarily calculated that they NEED to may for thier expences running 
a business, YOUR claims, and a reasonable profit.

For the DeLorean, the best place you can be is any of the afore 
mentioned collector car companies. I like AON because they have no 
age requirement- just a driving history requirement and NO mileage 
limitations. 
100/300/100 coverages, in a no-fault state (MI), with 500 ded both 
comp and coll for a 21 yr old dr, 18 agreed value = $315 / yr
INCLUDING the Michigan state insurance fee of $100

For as many misconceptions the public has about the insurance 
industry - the average insurance agent know NOTHING about the 
DeLorean. I can't stress enough that you NEED TO READ YOUR POLICY. 
Stated Amount is NOT Agreed value. If you're with a normal insurance 
company the payout you'll get on the DeLorean in the event of a total 
loss IS IN NO WAY GUARENTEED!!! Buy Collector car insurance, it's 
cheaper and better.

Feel free to email me with questions. I'm a huge insurance dork. :P
-James LaLonde 004009




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