Insurance: Where am I going wrong?

[Steve Cassani]

blown871 is correct to point to an error on my part, and not an inconsequential one. I should have been specific as to what each classic car insurer demands of me-a copy of the Declarations Page describing the limits of coverage on my 2011 Miata. They require this statement because no insurer will obligate themselves to coverage limits on the Kirkham which are greater than those already stated for the Miata. The relevant titles are: Liability Coverage, Medical Payments Coverage, Comprehensive Coverage and Collision Coverage. For each coverage, the classic car insurer will use the value already in force in the policy for the Miata. For example, the Declarations Page for the Miata states a maximum bodily injury limit of $250,000 for each person. The collector car insurer demands a copy of the Declarations Page because he will not write a policy for the Kirkham that limits the corresponding Liability Coverage to a value greater than $250,000. As best I've been able to understand this practice, it grows out of a concern that were the classic car insurer to write a policy with limits greater than those quoted for the Miata the insurer would put his underwriters at risk of paying the amount stated in the Kirkham policy to resolve a claim arising from an accident in another car I own, the Miata. Since the Miata policy is in effect, the risk is removed by writing a policy for the Kirkham that uses the same limits as those in the policy for the Miata.

"Yes, it gets... a bit muddled," and I cannot tell whether I am generating the muddle or it comes with the subject.