AAA Insurers Cobras!

[HowardV]

Some time ago, before purchasing my Cobra, I had researched insurance. I had called AAA and they stated they no longer insured Cobras.

I picked up my Cobra a couple of days ago. I called the specialized insurance companies and they were going to send me applications. The process was gonna take at least a couple of weeks. I was worried about not having insurance for this small time period (specially theft).

For the heck of it, I called AAA again yesterday. This time I got someone real helpful. He told me they DO insure these cars, but I also have to transfer my other vehicle to them as well for insurance.

I went down to AAA yesterday, they took pictures of my Cobra, gathered as much info from the net (Superformance web site, this web site, and CobraCountry) and then the agent went to the underwriters (who were in the same building). A little later he returns giving me a relatively large quote (About $1,500/year for the Cobra alone and another $1,500 for my Mitsubishi daily driver). This is a drastic increase from the other specialized insurance companies who only wanted about $600/year for the Cobra.

I went ahead and paid the premium to AAA for insurance. Reason being that there is no mileage limitation (unlike the 2,500 limitation placed by specialized insurers). Also, AAA is well known and I thought I would have less headaches dealing with them than some specialized insurance companies. Another MAJOR point was their insurance is instant. I now have full coverage as of yesterday!!! No waiting for applications, appraisals, approval, etc....

I hope this helps someone wanting to get insurance. Not that I'm gonna drive it more than 2,500 miles/year, but it's nice to know I don't have to keep track of my mileage!

Howard

[Cobra20646]

Howard,

Was this a 'standard' policy WITHOUT an agreed value? You don't want to get into an argument over what the car is worth to fix/repair/total if something ever happens. Most companies will depreciate the value as the car ages, where as an agreed value policy will usually pay off what it could cost to replace it.
You might want to continue to shop around for smething that better protects your investment.

[NeedAntiVenom]

Howard,

Jim is right - make SURE it is an agreed value policy. The AAA price is way too high, IMHO.

[HowardV]

They stated this was an "actual cash value" policy. As I stated, they wanted printouts of ads for similar vehicles to determine value. I printed out lots of Superformance ads, mostly in the $40K range.

I'm not too sure what they meant by "actual cash value". I thought this meant value being determined by what other similar SPFs are selling for at time of loss. Honestly, I was horrified of not having any coverage for collision, theft, and fire for several weeks. The main reason for paying this excess premium was two folds:

1. Immediate full coverage as of signing of documents.

2. No mileage limitations.

I will call on Monday and ask more about actual cash value.

Thanks for pointing out "agreed value policy".

Howard

[klayfish]

Howard,
What actual cash value means is that the insurance company will determine what the cars' value is at the time it was totalled. For "normal" cars, they use things like NADA or other books, or more often, they have companies that do it for them (they look at local newspaper ads, etc...to get a fair market value price). With a specialty car, it is harder to do, because there aren't many of them out there. If something happens to your car, you will have to demonstrate to them very well the value of your car. The upside is, as you pointed out, unlimited use and mileage.

Steve

[HI Cobra]

Howard,
You might want to check with Grundy Worldwide sometime
in the future. They offer agreed values, no mileage limits
and a very reasonable price. You need to send pictures, have
an enclosed garage, and must be over 25. I was hitting dead
ends everywhere trying to find an insurer in Hawaii and a broker
I had called suggested them. $530/yr with a $35k value $300k
liability, etc. Their service to me has been excellent for 4 yrs now.
Their number is (800) 338-4005. Hawaii is a "unique" place for
replicars (meaning good luck getting it on the road), and Grundy
solved my problems - well worth a call IMHO.


Flip

[Tinker51]

Uhhhhh, you may want to go back and have them look at the numbers again. I have my SPF with AAA and I pay way less than that. Of course I have my other cars with AAA so that might be some of it but that does seem out of line.

[G.R.]

AAA sounds way high to me At $1500 "actual value"(that is arbritrary usually in the insurers favor)mileage not withstanding. I'd insist on a declared/ agreed value or some such as it is defined. you might have a "specialty" car you paid $50K for and AAA , God forbid you had an accident, the company could say was worth only $5K "according to their sources" for actual value. Win-Lose situation--you lost.

I don't like insurance companies and/or their policies. But unfortunately they are a neccesary "evil" we must deal with.

I thought $900 a year on my SPF was outrageous w/ a company I've had "all" my insurance with for 25 + years, personal and business. But I had "replacement value coverage etc." did have a mileage limit of 2500 mi, but no one ever asked to see or inspect my odometer, before , during, or after a years coverage , paid my premium, they were happy. I know I never put near the mileage limit on my SPF, but I don't live where it is normally conducive to driving an open roadster 'cuz generally it rains so much.

I'd definitely checkout other options--unless you absolutely have to drive that new "ride " today, you may find you will get a better policy at a lesser rate if you have some patience and do some research.

[Cobra20646]

A simple way to explain "agreed value".......

When you make application with an insurance company, you are "settling" the claim before anything happens. Age, "book value" or deprecation do not enter into the equation if something happens to total your car, they pay off the 'agreed value'.

Just make sure the policy states AGREED VALUE, not some other term that might sound like the samething.

[davidlee]

I just got mine insured with Midwest Classic Ins. $392.00 year $250. deductable 3000 mi year limit They can up the miles if you wish to pay more. Robbin is my agent ,a great quy that has some hot rod toys and knows our language. I did it all on the computer and got insured the same day I started. Agreed value. I tried Grundy first and they told me they were no longer insuring Cobras

[flipper35]

HowardV, you may want to give Wawenesa a call. My premiums are about half of what you pay for the year for My Cobra, Durango, Cavalier, and 911 all total. Agreed upon value for the Cobra and standard full coverage just like the rest of the cars.

[HowardV]

Just wanted to say thanks to everyone for their responses. I will call the companies you have referred above and get quotes. But before I go too far, I want to hammer out my registration issues with the DMV first. I may have to file for a non-operational registration until next year - and that would change my policy.

And one more thing about insurance. I live in W. Los Angeles and we have one of the highest insurance rates in the U.S. I own a 2004 Mitsubishi Lancer (4 cylinder economy car) for my day-to-day tasks. AAA is charging me $1,500/year. My previous insurer, Mercury insurance, was charging me about $1,300/year. I have no accidents or tickets - a perfect record; and I'm 37 years old. And that's with a 50/100K policy, very low coverage.

So that could also be a reason why my Cobra insurance is high. AAA said I'm getting charged the same as if I had a new Mustang GT (funny thing, cause I just sold my convertible GT a few weeks ago!).

Again, thanks for all the advice and references,

Howard

[RedBarchetta]

Get a professional appraisal done (about $175) and have the car insured for the appraised value. Mine came in at $50K and Allstate insures it for that (for less than 1/2 what you're paying AAA, and with a 2,500 mile exclusion). I've had the car roughly 3 months and have driven ~500 miles, so I'm tracking below my mileage limit (so far...knock on wood).

-Deano

[Midwest Classic]

If you have coverage through a standard insurance market or generally one that also writes your regular car insurance you could have a problem with a total loss. Most companies insure these cars on a stated amount basis and this is probably the worst way to insure one. I teach seminars on how to insure the cars and that is generally my opening line at the seminars.

We insure Cobras and other collector cars on an agreed value basis. As far as I am concerned this is the best way to insure them. With an agreed value coverage you at least know what you will get with a total loss. Our policy also has an inflation protection in there so you could really be paid more than you insured it for, and we have done that.

In most states you can figure the Cobra insurance would be about $10.00 per $1,000 value with no deductible or about $8.00 per $1,000 value with a $250 deductible. Add to this number about $70 for the liability and you have your annual cost. An example of a $50,000 Cobra would be $570 with no deductible or $470.00 with a $250 deductible.

Give us a call at 1-888-271-4000 or email me at robbin@midwestclassicins.com. We have a website at www.midwestclassicins.com.

Good luck with your insurance needs but you might as well insure the car correctly, it is a big investment.

Robbin