American Collectors Insurance knows that many collector vehicles are intended for hobby use, not daily driving—which is why the company’s specialty program offers lower premiums with broader coverage than standard auto policies.
PRODUCT: Specialty auto and collectibles
COMPANY: American Collectors Insurance, managing general agent for American Bankers Insurance Co. of Florida
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through both independent and captive brokers and agents.
FOCUS: American Collectors Insurance knows that many collector vehicles are intended for hobby use, not daily driving—which is why the company’s specialty program offers lower premiums with broader coverage than standard auto policies.
“There are still many collectors who have their collector car insured on the same policy as their everyday use cars,” says Orlando Morales, underwriting manager at American Collectors, which specializes in coverage for collector autos and collectibles.
The collector program provides “agreed value” coverage, insuring at a value pre-determined by the company and policyholder. For a total loss, the insured would receive agreed value less any deductible, distinct from actual cash value of standard coverage “where depreciation can impact the settlement of the claim,” Morales says.
Agents that serve the niche can educate consumers and use the conversation to gain sales opportunities. “If you save a prospective client money on his 1975 Camaro, he will want to know what you can do on other exposures,” Morales points out.
UNDERWRITING: The program will insure just about any car at any age, so long as it has “collector value” and is intended for hobby purposes, Morales says. Collector vehicles can be under restoration and range from antique and classic cars to hot rods, military vehicles and fire trucks but must be kept in a garage, with exceptions. Any driver with five years of driving experience can qualify with up to one accident or moving violation per person and two per household within a three-year period.
Typically, the company discusses an agreed value with the broker and/or the collector for a collector auto based on factors such as collector sale information and market value estimates. The program offers high limits of liability if necessary to match an umbrella policy’s requirements. Consumers can choose a maximum deductible of $5,000, as well as 5, 10, 15 and 20% for higher-end and large collections. The specialty program includes property and liability coverage. Covered perils include flood, vandalism, fire, theft and collision.
The American Collectors program offers mileage limits of 2,500 or 5,000—as well as a “Freedom Tier” 7,500-mile plan for occasional general use. The Towing and Labor for Collectors plan reimburses for emergency towing, roadside assistance, car show expenses, personal effects and theft reward. Other features include coverage for spare parts and “Inflation Guard,” which automatically increases value up to 6% annually for vehicle appreciation. Discounts are available for car club affiliation, high-value collections, multiple vehicles, security systems and safety devices.
MINIMUM PREMIUM: $100.
TARGET: “True collectors wanted!” says Morales, meaning auto owners who are “passionate about their car.” While many are married and age 50 and above, Morales says a younger audience is entering the hobby with an eye on newer exotics and customized cars.
COVERAGE TERRITORY: All 50 states and Washington, D.C.
CONTACT: Orlando Morales, underwriting manager; 856-382-3213; or Derek LeBeau, program director; 856-382-3513; American Collectors Insurance, 496 Kings Highway North, Cherry Hill, NJ 08034; 800-360-CARS (2277).
Ronimarie Acord is an IA contributor.
