I’ve been thinking about insurance lately. Warren Buffett became a multi-billionaire by using people’s insurance payments for free until they actually made a claim. We pay life insurance and never see the money ourselves (since we have to be dead to collect.) The only way we collect on our home insurance is when our house burns down and even then our lender gets paid first. We pay title insurance on our homes and then have to sue the title insurance company to collect anything. And then there’s car insurance which actually protects us from liability claims and covers our cars even if we are at fault.
Classic cars can be difficult if not impossible to fix since there may be no parts available either new or used. Also, even if you can repair your damaged classic, a repaired car is never the same as an original one. I’m an extremely cautious driver in my older vehicles — their handling and braking may be as good as when they were new but don’t compare to today’s cars.
How does one go about insuring a classic car? There are several insurance companies that specialize in classic car insurance. I use Hagerty, which has been around a long time and has a good reputation. They won’t argue about how much your car is worth; you just state a value you’re comfortable with and insure it for that much. If it’s damaged beyond repair they will pay you the amount you had already agreed upon and if it needs repairs I understand they can even help in locating parts. I also like the price. I’m not sure why but the insurance (from another company) on my 13-year-old Land Cruiser Realtor car is more than I pay for all 11 of my collector cars together. I guess that Hagerty assumes I will only be driving one at a time and that I will be very careful when I do.
When I’m not out selling houses I’m often in my second floor office overlooking 175th here in Woodinville and I sometimes see really nice classic vehicles drive by that I’ve never seen before. I wish that I could check them out close up, so if you’re driving by the Windermere office and have a minute please stop in, ask for me and let me check out your car. You can even call me and invite me over to check out your collection.
For those who may not know, when I drive one of my classics to work I get to park in the spot right next to 175th (usually reserved for clients) so if you see a different looking car in that spot it’s me.