Insurance?
 

Ok, with my Cobra finally about to hit the road, I will need to change my Shannons "laid up" insurance to full insurance.
I guess I will also need to up the value of the car.

It is currently insured at $45k as laid up (about 10% more than cost in parts, for incidentals and value increase).

What should I increase its value to?
Bearing in mind it is still in undercoat ect, I was thinking $70K?,
I get that by estimating 200 hours work at $90 per hour $18k, then adding 10% for incidentals and cost increases, also I saved the cost of engine and gearbox as these were free of charge, therefore not in the cost of parts at $40k.

I guess replacement cost would be higher again as I am sure the CR kit costs more now?

Do I need to specify I want to keep the wreck in case of write off?

Also I think some of you guys have switched to Lumley, how do I get in contact with them?

Lastly, what level of insurance should I get?
Should I go for limited use?
The reality is I will be using it alot (maybe not every day while it is 45 degrees and the sun would fry my brain before I got home each day) but I think it will be more than 2 times a week.
Is there a Klm per year figure they work off?

Then when it comes time for me to pay rego on Friday, what value do I put on it when they mention stamp duty? Obviously I want to pay as little as possible, but do the insurers "talk" to the MVR to see what value I put on it for stamp duty?

So excited - yet so confused.

I just rolled mine over to Shannon full comprehensive. Seemed easiest and was a reasonable price Dave.

Value? Well there is the insured value and then what it is worth to a buyer (and a third value also I guess: that one uses for stamp duty). To you, the insured value seems right, but to another buyer may be less. It is an 'agreed value" anyway so $70K sounds fine. The dutyable value is what I thought about and I just took my main kits receipts and tallied them (with motor and so on) and found a lowish figure I could justify.

I did not go for the 'limited use' option as I wanted flexibility. I could change it next time however.

Merv

You might find that they will want to see photos of the the vehicle before they agree with any value.

Warren

I doubt they would agree to an unfinished car for $70k. They will def want to see the car b4 they make a determination.

Tell you what, put up some pics Dave and we will give you an evaluation!

I will get it out of the shed tonight Merv and take some pics in its rego trim.

As for the value, I just checked the Classic Revival website, Ian is quoting approx $123k for a complete car, I realise this includes paint.
But if I delete $13k for paint, that leaves $110k as a replacement value, and isnt it replacement value that the insurers look at?
(That is why I thought my estimate at $70k was fairly reasonable)

Forgive my ignorance as I really do not know, the most valuable car I have insured before this was my Prado at $40k and there was no retaining wreck or any other clauses in that.

In my eyes it is unfinished, but what is to stop someone else from wanting a "suede" finish top coat?

I guess I never costed in my own labour (mine might only be worth $10/hr!). Also in terms of replacement, I looked at ads for cars for sale that were of similar specifications. That can be a good guide. Insurers can use either replacement value (agreed value - essentially) or market value, depending on the policy you take.

Keep the 'wreck'!

This is good timing Boxhead....
I was going to write something on this subject in the next day or so.

I just had my "Laid up" insurance policy for the "Race Cobra" falling due in February.

i.e it's covered for everything except driving it on the road.

( If it's lost/stolen/burned down/smashed on a trailer etc. etc....all covered )

I currently have it insured with Shannons and it's insured for $32,000.
The renewal premium was $256-00.

Because It also dawned on me when this one fell due, that I have another "Mostly completed" new Cobra sitting uninsured, and also being transported around on a trailer, that I should also get some cover for this one as well.

Rang Shannons, and got temporary cover to line up with the Race car policy, and got the following price charged for the next coming year for both vehicles.

SHANNONS
Race Cobra

Laid Up cover $32,000-00
Excess $200-00
Premium $230-00 (Inc S/Duty and GST)

Not sure of rights to recover the wreck,
and it has some "bells and whistles" on policy...Emergency accom/etc., which I ouldn't think would apply to a wrecked "Race" car.


New Street Cobra ( under construction) :

Laid Up Cover $73,000.
Excess $300-00
Premium $265-30 ( Inc S/Duty and GST )

Total for both Cars $495-74


NOW.....

also then got a quote from LUMLEY SPECIAL VEHICLES

Race Cobra
Cover $35,000
Excess $250-00
Premium $139.00 ( Inc S/Duty and GST )

With Full Salvage rights in the event of a write off

Street Cobra
Cover $70,000
Excess $250-00
Premium $193-00

With Full Salvage rights in the event of a write off.

Total premium for both cars $332-00

$163-74 less than Shannon's quote !

It was missing a couple of the SHANNON'S "bells and whistles" that I really don't think would ever be used , BUT..

LUMLEY SV had the right things for me...

Agreed value that doesn't depreciate.

Full Salvage rights...i.e. vehicle gets writen off...you get agreed value PLUS you get the car back.

Your choice of repairer.

Free windscreen ( More important when the new car is finished of course)

I also got some quotes for cover on a "finished " Cobra at various amounts up to $120,000, and the premiums were less than I had been paying Shannons last year, on my Black and Yellow Cobra for agreed cover of only $67,000-00.

It's an individual choice of course, but if anyone wants to get a quote:

Contact LUMLEY SPECIAL VHICLES,
Mr. Frank Drljo
03 98546702
Mob 0427 305708
FDrljo@lumley.com.au

And before anyone says it....I'm not getting any spotters fee !!

Hope this helps some of you.

Cheers,

Warren

Thanks Warren.
I think I will be ringing Frank on Wednesday.

The engineer contacted me before lunch, he has emailed his report to Darwin MVR, they are checking the wording now and will contact me within the next few days to say I can go and pay rego. :)

Dave,

I insured with Lumleys for $100K. Premium $550. $200 cheaper than Shannons. Agree with everything Warren says.

Baz

I don't know why you are counting your hours in the insurance value, it didn't cost you folding stuff - I don't know about anyone else, but 70k would not make me feel alright about losing that much of my hard work pride and joy.

I would either be insuring for replacement parts cost, so I could build another one, and have a quiet sob in the corner about the lost hours, or alternatively insure for about 200K so I wouldn't feel so bad about the lost hours.

paint...13k???? you're scaring me.

If you are speaking to Frank, let him know your coming down to ShelbyFest.
We are waiting for final signoff from LSV for major sponsorship this year.
He'll be able to value the car first hand for you.
I have all my cars through LSV and all is well.

Hi there Modena,
I was only counting a labour value as I thought insurance valuations where replacement cost, that generally means they supply the money for someone to supply you a vehicle the same as yours, and if that was happening I am sure the supplier would expect to be paid an hourly rate, I was only using $90 per hour as an estimate, it could be more?
Maybe I am wrong there?
I hear what your saying about my time cost me nothing, but at the same time, why would someone's car be valued higher because he organised a subcontractor to build his car - example being Baz's car, I am sure his builder wants to be paid for his work, Baz chose to work a job to earn the money to build his car, I chose to use the time I could have been working for an employer being paid an hourly rate to build my car instead.

I was taught at a fairly early stage in my working life, that time is not free, even if it is for your own car or mates cars (being a mechanic by trade I had alot of mates expecting me to work on there cars on weekends for free while they went and partied).

Regarding the paint and panel cost, I am not sure what Ian pays his subcontractors for there part of the vehicle build, but figured I was over estimating in favour of the insurance company?

Anyway, here are some pictures as requested of my car as inspected by engineer, only thing to be changed is full screen has been refitted tonight.

http://i270.photobucket.com/albums/j...ering010-1.jpg

http://i270.photobucket.com/albums/j...neering008.jpg

http://i270.photobucket.com/albums/j...neering006.jpg

http://i270.photobucket.com/albums/j...neering004.jpg

http://i270.photobucket.com/albums/j...neering003.jpg

http://i270.photobucket.com/albums/j...neering001.jpg

http://i270.photobucket.com/albums/j...neering011.jpg

http://i270.photobucket.com/albums/j...neering012.jpg

I pity you with that red dust to contend with! She looks great. It's probably an optical illusion because of the front screen, but the rollbar looks to high?

re: insurance, if you are to factor in labour then the valuation should be on-par with what Ian charges for a turn-key vehicle with similar engine/trans ????

The bar is a little high for my likeing, but when I worked out its height, I ran a stringline from the top of the bar to the highest substantial point on the chassis (the cross bar and shock towers infront of engine and made sure my head was comfortably below it (including helmet fitted).
I figured if the bar has to be there, then it may as well be usefull.

History
 

I would just like to offer my opinion on the Lumley Vs Shannon’s debate.

While I respect the fact that Lumleys have some very competitive pricing and by the looks of things may sponsor the Shelby fest this year, which is fantastic. We approached Lumleys for sponsorship, they were interested however it was important to show loyalty to a long standing supporter of the national cobra community, Shannons.

Like Wazza, I do not collect spotters fees, however please factor into your decision that Shannon’s have supported the Cobra community for many years with at least $8000.00 in sponsorship over the years for the Nationals. They do this without question or negotiation.

They have pioneered this product for the car enthusiast and from my understanding there have been no horror stories, when it comes to claims they seam to be very fair and accommodating.

I also had a quote from Lumley and it was attractive, however I gave Shannon’s the benefit of the doubt and they came up with a comparable deal.

I have also claimed 4 Windscreens in 7 years and they honored that without question.

Just food for thought.

Thanks

Phil

Thanks for the input Phil.

I will admit that I was a little put off by Shannons, They have dropped there contact numbers to agents in each State and only have the 134646 national number, I rang there and was told they could not give me a contact number for local agent.
They did email him though and he has made contact with me, so know I need to send current pictures of the car for evaluation.

Hey Dave,
No worries, heathy competition is great and keeps industry on its toes.

I am sure there are pages of arguments on who is the better provider and I am not suggesting either one is, just consider the relationship and support we have from shannons when making your decision.

Phil

Boxhead You're right there with the roll bar height. I did the same thing...the roll bar looks too tall but the angles and outcome is 'correct'....some things just have to be done. ;)

We have laid up cover on the Cobra with Shannons, as well as full cover onall of our limousines with them as well, i have only ever found them to be 100% helpful with any repairs we need being authorised the same day as a claim. It also makes a difference if your house is insured with them as well. Just my 2 cents worth.

Andy.