What you need to know about collector car insurance

What you need to know about
collector car insurance
Whether you own one Duesenberg or one hundred, a Delahaye, or a stable of prewar
Bugattis, you want to know that everything possible has been done to help prevent
damage or loss. There are distinct insurance policies for collector cars, with meaningful
coverage to help owners remain “whole” in the event of damage. Not all insurance
companies have the expertise to help owners preserve long-term value.
Insurance policy details can vary from carrier to carrier, but some of the more important
aspects to look for are:
• Agreed value coverage
• Worldwide coverage
• Full transit coverage
• Market appreciation coverage to account for rising values
• Diminution in value coverage for partial loss
• Automatic coverage for new purchases
A unique aspect of collector auto insurance is the tremendous emphasis placed on
vulnerability assessments, risk management and loss prevention. These policies cover
rare and very often irreplaceable items.
One-of-a-Kind Claims
Claims are another area in which the road diverges from standard automobile insurance.
In addition to rare parts and the unlikely availability of a replacement, you may have a
significant sentimental attachment to a vehicle. It’s in your best interest to choose a carrier
with claims professionals who understand this world and who are empowered to address
the unique circumstances of each loss.
For example, a policyholder at our company was involved in a collision that virtually
totaled his Ferrari Enzo, one of only 400 ever produced. The extensive damage would
require lengthy and complicated repairs. We offered to reimburse the policyholder for the
full value of the vehicle, but he preferred that we attempt to repair it. The rarity and design
intricacies made it nearly impossible to find a qualified technician and replacement parts in
the area. We determined that the only craftsmen qualified to complete the repairs were the
ones who originally built it—at the Ferrari factory in Italy.
We shipped the damaged remains and flew the policyholder to Italy twice to inspect the
progress. When all repairs were completed to the policyholder’s satisfaction, the vehicle
was shipped back to his residence, and to this day he remains the proud owner of one of
these rare beauties.
For more information about properly insuring your collection and AIG’s customized
insurance solutions, please contact independent insurance advisor, Tara Trout,
Director, with AHT Insurance at 703-737-2244 or [email protected].
Or visit us online at www.aigprivateclient.com/AHT
About the Author
Ron Fiamma is vice president and global head of private collections at AIG Private Client Group. Prior to joining the Private Client Group, Ron worked in the financial institutions
division of AIG, underwriting professional liability coverage. He joined AIG after many years in the financial services industry as a broker, trader and analyst. Ron earned his degree
in art history from Vanderbilt University and continued his graduate work in Italy.
AIG Private Client Group is a division of American International Group, Inc. (AIG). Insurance is underwritten by a member company of AIG, including AIG PROPERTY CASUALTY COMPANY. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit our website at www.AIG.com. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy
language. All references to claim settlement information are based on the loss being covered by the policy and are subject to change without prior notice. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain
property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
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