Winter is coming – why classic car insurance is vital during colder months
Winter is coming – why classic car insurance is vital during colder months | Insurance Business Canada
Insurance News
Winter is coming – why classic car insurance is vital during colder months
How often should cars be driven, even when they are in storage?
Insurance News
By
Desmond Devoy
This article was produced in partnership with Hagerty Insurance.
Desmond Devoy, of Insurance Business Canada, sat down with Tyson Moore, Hagerty Insurance’s territory manager for western Canada, to discuss proper storage of classic cars over the winter, and why suspending coverage during the winter months is not always a good idea for collector cars.
The snow is about to fly, and your client’s classic car is heading for storage – but their insurance shouldn’t be in hibernation.
Getting behind the wheel of a collector car is rooted in the enjoyment of the open road. Hagerty makes it easier to enjoy those beautiful fall cruises, or the early season thaw with a policy designed to be year-round.
“We offer an annual policy that will protect the car during both the driving season and when the vehicle will be stored in the off-season,” said Tyson Moore, Hagerty’s territory manager for western Canada.
The ideal home for any collector car is a secure storage facility with temperature and humidity regulation. However, if this is not possible, a heated (and locked!) garage also works. Checking out online reviews is a good way to see if the facility you’re looking at has a good reputation.
But for as good as the facility may be, cars are meant to be driven, and need to be driven to keep them in good working order.
So how often should a car be driven to keep it running in good shape?
“I would say monthly, if possible – more frequently in the nicer months of the year,” said Moore. “Many collector car enthusiasts will agree, to keep a vehicle in tip-top shape. They should be exercised regularly, especially when Mother Nature gives us a few extra days in fall, spring, or, if we are lucky, even those winter days when roads are dry and ice-free.”
The common practice is that a client putting their car away for the winter will call their broker and ask for comprehensive-only coverage. However, that will not cover them for collisions, nor would it pay for damage resulting from a vehicle falling off a jack while under repair, or running into a
garage door after a brake failure. Comprehensive-only coverage includes protection from fire, theft, and vandalism, as well as weather or other types of accidental damage not caused by on-road collision, like water and earthquake. But accidents do happen to cars while in storage too.
What’s worse is owners often don’t realize they can be exposed to potentially costly liability losses while their vehicles are in storage. For example, their vehicle catches fire from an electrical issue, which triggers a fire that ultimately spreads to a nearby property. So saving a call or two for you and your clients equals more tailored, year-round protection and peace of mind.
Which coverage option is right for your client?
There are two main options for year-round protection: Hagerty’s Guaranteed (Agreed) Value™ Policy*, or Guaranteed Value with optional Cherished Salvage® coverage.
“The ‘Cherished Salvage’ coverage is an endorsement that can be added to Hagerty’s agreed value policy,” said Moore. “This endorsement allows the owner to receive their vehicle’s full agreed value and retain the salvage vehicle in the event of a total loss, with no deduction for the vehicle’s salvage value.”
With Hagerty’s Guaranteed Value policy, clients receive every cent of their car’s insured value in the event of a covered total loss. It’s an agreed-upon value that is assigned to the vehicle at the policy’s inception, unlike most standard policies that provide “actual cash value” or optional “stated/declared value”, each of which may depreciate the vehicle’s value, resulting in a lower payout for the client. With Hagerty, the agreed-upon amount at the beginning is guaranteed to be the amount paid, less any optional deductible.
With Guaranteed Value alone, the insured may still keep the salvage vehicle, however, the salvage value would be deducted from the amount paid.
Hagerty offers many other distinctive collector-specific endorsements geared toward collector cars and their owners’ unique specialty vehicle coverage needs. Beyond insurance, Hagerty powers the broader community of vehicle enthusiasts with an array of custom-designed services.
“We also have our Hagerty Drivers Club (HDC) which is curated for the automotive enthusiast,” said Moore. “The HDC membership includes emergency roadside service, like guaranteed flatbed towing, a subscription to our award-winning HDC magazine, automotive discounts, exclusive access to a deeper level of proprietary vehicle valuation data, and a whole lot more.”
So if you are getting those calls from your clients (with a hint of sadness) about removing coverage for the winter on that fun to drive collector vehicle, Hagerty might well be the option to spark optimism of brighter days ahead.
Start quoting with Hagerty today. Get started by contacting our team at:
Note: Hagerty’s collector vehicle program is underwritten by Elite Insurance Company.
*Submit claim under any government policy first and then a Hagerty policy immediately after.
AB & QC: Agreed value applies under the Guaranteed Value Plus Endorsement.
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