Insurance Problems

[Midwest Classic]

Originally Posted by hi-tech cobra

Midwest Classic,

After reading all this thread, I am very concerned about the future of driving a cobra. I live in Florida, and if you follow the news you would know how the big insurance companies are pulling out of the state due to losses from the past hurricanes. It looks bad, and home valuations in the state are starting to slide because of it.

This trend will eventually hit our little band of cobra brothers, if what you say is true about the disproportion in cobra claims. Our hobby is small and vulnerable to the whims and perceptions of the insurance industry. And there is not a lot we can do about it. But we can do something. Here are a few ideas. None that I like, but faced with the alternative they are something I can live with if it means I can drive my cobra.

1. Have a cap of $50K on the overall value of the cobra. Anything above should be the owner's responsibility. Let's face it, if someone has the cash to fork out this kind of money for a toy, they should be able to absorb the difference to repair or replace it. The valuation should be based on the actual kit. No way should a kit that cost $25K be valued at $75K. No matter how shiny the paint is. This leaves the door open for "cashing out".
2. More due diligence on suspicious claims. On the early morning deer/leaving party accident. Why did you pay the claim? Am I wrong to assume most insurance companies would dispute a suspicious accident like this? Are you too easy?
3. Higher deductibles. This would make someone think twice about filing an unnecessary claim. I am on my 3rd cobra. My first was damaged by my first wife (she go bye bye) leaving the rear quarter with several very deep scratches. Did I call my insurance agent and file a claim? No, I don't see insurance as a quick and easy bail out. I paid to have it repaired. And then got rid of the wife (is there divorce insurance, because I really could have used it-ouch, that cost me!). Why would someone enter a claim for $2? What is the average deductible on you policies? Are you are getting killed on damage that should be handled by the owners?
4. Mandatory driving school. This is big. No, it doesn't teach you to drive faster, it teaches you to drive BETTER! I have done both open wheel driving schools and porsche driving schools. What I know helps me stay in control.

It stinks but maybe cobra insurance should be more like my health insurance. My family is very careful not to abuse it because of high deductibles, co-pay, no prescription drugs, etc...I don't like it, but being self employed, married with two kids I am paying around $750 per month. And everyone is healthy! We find a way to make it work, because the insurance companies force us to.

These are just ideas. I appreciate the fact that you are on here asking for opinions. The cars we drive are way overpowered. We drive them because they are exciting (this is America, not Amerika). They should be respected because when they bite, they bite hard.

It is a shame some guys don't drive more responsibly, but it is human nature. Give a guy a really big gun and what does he want to do-shoot it so everyone can see what a big gun he has. I drove and will drive my cobra slow on the street because there is nothing to prove. What I do on the track is a different story. And if I wreck it while racing, it's on my dime.

I really enjoyed reading your note. You know when I talk with people and they call with a value on their car they always want to value it at the total receipts they have in it. Aren't you glad you don't have to buy a 2007 chevy for what it costs if you went to NAPA to buy each individual part. I usually think you should insure it for parts and absorb labor costs. In a lot of cases you could purchase one built for less than you pay just for the parts, and usually with very low miles.

As far as the early morning claim what are you going to do if you are the adjuster. They wrecked their car on the way home from a pleasure drive and we cover that sort of thing. The only thing we can do is look at the renewal a little closer. If someone has an accident and they are legally intoxicated we pay for the loss. Personally I think that if you are doing something illegal such as that and wreck your car we should not pay for your vehicle. Ask my son if I practice this, anyone want to buy a wrecked '66 Mustang!

I like higher deductible idea and am going to push the companies into filing that. Currently, in most States, we only go as high as $250. Of course when we increase deductibles we also lower premiums but hopefully they offset themselves in the long run.

Driving schools have been mentioned a lot and I am going to check into those a little more and probably post some on my website. If anyone is involved in a school send me a web link and I will get it on my site.

Thanks for the posting and oh by the way there is an insurance coverage for that divorce situation it is long term care.