A classical gas

Rough Notes, Apr 2003 by Boone, Elisabeth

The Hagerty agency's Collector Car Insurance policy is underwritten by an A- rated carrier that is among the country's top 10 insurance groups. About 60% of the business is written through retail independent producers, with the remainder being placed direct with the insurer. The agency insures collectible vehicles in all states except Alaska and Hawaii under its agreed value form. "Of course we have to accommodate the various state regulatory requirements; for example, a couple of states don't allow agreed value, so there we write on a stated value basis," Hagerty notes. "Overall, though, we try to keep our policy as uniform as possible. In most states we write an agreed value, no deductible, limited use auto policy."

How do rates for the Collector Car policy compare with those for a standard auto policy? "They're probably about 25% of what a normal auto policy would cost, so it's very good coverage for very little money," Hagerty says. The premium for physical damage coverage is approximately 60 cents per $100 of value. For example, the physical damage premium on a 1965 Mustang worth $10,000 would be $60. Liability premiums are based on a vehicle's age.

For $100,000 worth of liability coverage, the cost is 60 cents per $100 of value for vehicles 25 years and older; it's $1.40 per $100 for vehicles less than 25 years old. Where state regulations permit, Hagerty charges only one liability fee no matter how many cars a collector owns.

The policy offers flexible usage guidelines for insureds that do not strictly limit the annual accrued mileage on a classic vehicle, provided it is driven on a limited basis. Other features are automatic coverage for new purchases and auto show medical reimbursement. A damaged vehicle can be repaired at a facility of the insured's choice. The agency does not insure vehicles used for transportation of goods or passengers, for daily transportation, or while racing. A limited use business endorsement and a racing paddock endorsement, however, are available in some states.

Hagerty Protection Network

As an extension of its collector car coverage, the Hagerty agency last summer introduced the Hagerty Protection Network, which offers insureds an array of value-added services and resources. At the core of the program is Flatbed Roadside Assistance, which provides 24/7 road service dispatch that covers flatbed towing and the most common mechanical assistance. Hagerty's research indicates that collector car owners are six times more likely to experience mechanical breakdowns, battery failures, or flat tires or require vehicle towing than they are to file an insurance claim for damage. Flatbed towing, according to Hagerty's research, is the safest and most secure towing method for

transporting classic and vintage cars.

The services available under the Roadside Assistance program are:

* Up to three roadside service calls per year, up to $50 per incident (an optional upgrade to $100 is available); parts and labor are additional

* Roadside adjustments by a mobile mechanic to enable the vehicle to operate under its own power or be towed to the nearest qualified repair facility