Ferrari Mailing List: Re: Insurance Question

[A.J. Merrifield (101pdt]

I can't speak for their exotic coverage, Charles, but we have State Farm for our cars, renters insurance, and homeowners insurance and they've been great from every aspect, including helping us to tailor our coverage for issues like Doug brought up. IMHO, a lot of it comes down to getting a good local agent who's willing to take the time to really learn what you need and help you create the policies to cover that.

Just my $.02, YMMV.

- A.J.

On Tuesday, May 8, 2012, Doug and Terri Anderson wrote:

Sounds interesting Chuck.

 

Suffice it to say, there are three legs to the insurance stool (no pun intended) – Sales, Underwriting, & Claims. 

 

For the most part, each department gets along with each other under the corporate umbrella about the same as the Infantry, Artillery, and Corps of Engineers get along with each other under the umbrella of The Army.

 

So it ain’t just premium that should drive your decision it’s how do they handle a loss.

 

Under a standard ISO Home Owners policy, damage to the home caused by an earthquake or (for real) volcanic action is NOT a covered peril.  So a baseball goes thru your window – covered peril.  Earthquake breaks your window – not a covered peril.  BUT sometimes it is.  Huh?  Ayep.  Some polices will cover an external glazing loss due to an earthquake and some won’t. 

 

Well – how do you know?  Guess wot?  Read yer policy.  They are easy to read, really.  Standard ISO policy language is laid out thusly - First part is usually definitions, second part is what is a covered peril and the last part is specifically what is NOT a covered peril.

 

For instance – you have a set of concours wheels off your car stored in your garage.  Garage suffers a fire.  MOST likely NOT covered under the auto policy for which the wheels and tires fit – wheels and tires gotta be ON the car.  Oh, so then it’s covered under home owners fire policy – NOT so fast – auto stuff ain’t covered under home owners UNLESS you have a specific rider covering stuff off your car – tools the same way. 

 

Most home owner’s policies are vanilla ice cream.  You have $10,000 in tools and lab scopes and suffer a loss?  Here’s your $100.  Or some such number.  Read your policy.  Your car undergoing a restoration?  Is “while undergoing restoration” specifically covered under your auto policy?  Most likely not – Insurance companies like vanilla ice cream – cars are whole things and most people don’t restore them – they sell them.

 

And speaking of selling a car – picture this.  I have my 78 308 up for sale – Chuck comes by, clean cut guy and with his wife in a MB.  She drops him off as she has to run an errand and will be back in 10 minutes to pick him up.  So far so good.  Chuck wants to drive the car – sure, here are the keys. 

 

Three hours goes by and I am really worried.  I call the police and report a stolen car – they ask if anyone was murdered and I say no, so they say they will get someone on it tomorrow or next Monday – but “we’re sure it’s not stolen.”   Couple of days goes by and I now file a stolen car report and report my car stolen to my insurance company.  My ever so fine premium sucking company politely says - - - - - “Not covered.”  HUH?  Whaaa?

 

Ayep – “Conversion.”  I GAVE the keys to Chuck the perp (sorry Chuck) to drive the car by himself and this is a risk the insurance company didn’t agree to underwrite.  I gots no claim.

 

Now had I gone with Chuck and one or two blocks later he forces me out of the car either physically or by intimidation – then I have a claim.  Simple, yes?  Read your policy.

 

So premiums and underwriting are only 2/3’ds of the picture – the most important leg is how they resolve a claim.  You don’t want to be left without THAT leg to stand on.  Most states have a Dept of Insurance or insurance companies may have to report to the Dept of Treasury or some such Department.  Oh – and it is NOT against the law to sell insurance (at least in Kalifornia) if the company is NOT reregistered with the state – but you run into a duty to defend problem with an off shore company.  But hey, the Bahamas are really a nice place to launch a law suit. 

 

So contact your state dept and ask them what type of complaint history your company has with the state.  Don’t be discouraged if they can’t tell you in black and white – after all, this society we now all live in is quite litigious and the states may be reluctant to black ball anyone directly – but be creative – it will pay dividends just when you need them.

 

Remember – ALL insurance policies are exactly the same except for the differences.

 

Onward

 

DOUG

 

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From: chuck datte [mailto:ferraridriver07 [at] gmail.com]
Sent: Monday, May 07, 2012 9:09 PM
To: DOUG
Cc: The FerrariList
Subject: Re: [Ferrari] Insurance Question

 

The quotes I got for my 2 ferrari's was crazy, we went with gieco. They had no classic or show rates either

On May 7, 2012 7:26 PM, "Charles Perry" <charles [at] carolina-sound.com> wrote:

I know we hit this topic every so often, but I'm dealing with it now.

 

Do any of you use State Farm for your exotics? If so, have any of you had a claim with them on an exotic and what was your experience?

 

I've been with American National (ANPAC) and have been very happy with them (no claims), but State Farm is offering me similar coverage for more than 30% less than what I'm now paying. That's pretty dramatic but I don't want to be penny-wise/pound-foolish if State Farm is a PITA for claims.

 

Thanks!

 

-- charles

________________________________________________________

Charles G Perry IV
Vice-President, Engineering
 
Carolina Sound Communications – MuzaK
7630 Southrail Road, BLDG B
N. Charleston, SC 29420