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+--- Thread: Insurance for DE (/showthread.php?tid=44)
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- pmajka - 08-08-2006
Who uses what insurer for DE Insurance ???
although not required, I believe I'd be a fool not to have it.
- smankow - 08-08-2006
normally, I would recommend American Collectors, but given their recent charge in writing policies, they are no longer an option. Also, I've heard that Laurel Insurance is under investigation as they are not registered with the US nor any state as an insurance company.
Steve
- Brian Minkin - 08-08-2006
Steve,
What is the "charge" you are referring to. I have been with American Collectors for years and have not noted any changes to my policy other then increasing the declared value as the car has matured.
- smankow - 08-08-2006
I am insured with American Collectors, too. ACI is no longer writing DE policies (they confirmed this directly to me today) but are planning to service their existing policies. Maybe I'm a little cautious with this, but I'm not comfortable with them not making any mention of this to their customers or agents. In fact, their website still list DE policies but my agent, Kip, had not been notified of their change.
My concern is that they will "earn" premiums after DE season ends (Nov/March) then simply not renew the policies. The insured may not have known that they are no longer in this sector of the business. And, of course this leads to possible issues with claims. I can see it now - "sorry Mr. Smith but we can't pay your claim since we cancelled your policy last week ..."
As for Laurel, there has been discussions about them not being a US registered company but offering insurance. By not being registered they don't pay into any of the state insurance funds, whereby there would be no state backing in the event of their insolvency - take the money and run. This is why Laurel is being investigated.
Maybe this is getting blown out of proportion, but I'd rather know this now rather than later. With the $$ premiums that they charge (1.5% of value), they should be sending out some form of correspondence to agents and/or customers assuring them of continued coverage or that they need to find alternatives.
Steve
- smankow - 08-08-2006
this topic has been discussed over the last few days on rennlist. here is the link:
http://forums.rennlist.com/rennforums/showthread.php?t=291100&page=1&pp=15
Steve
- jmr3 - 08-09-2006
This was just posted on Rennlist:
To whom it may concern:
I am sending this email in hopes that you will post it. I am not signed up with Rennlist so I was unable to respond to the recent postings.
Dear Driver's Ed. Participants:
It is with great regret that American Collectors Insurance has closed it's Driver's Ed. Insurance Program. We made this decision
based on the fact that the demand for the coverage was low and our loss ration was too high. The low annual premium and claim severity is what drove the loss ratio well above acceptable limits.
For those of you who have a policy with us now, your policy will remain in effect until your renewal period and we will honor any claims that
occur until that time. We have been in the insurance business for 30 years and intend to hold true to our reputation as being a provider of great customer service. A letter will be sent to our existing policyholders as their renewal time approaches.
Thank you again and I wish you all good luck on the track. If you would like to send me your comments please send them to: orlando.m@americancollectors.com
Sincerely,
Orlando Morales
Driver's Education Insurance Program
Program Administrator
(856) 382-3213
- Marty Kocse - 08-10-2006
I just spoke with Orlando. From the insurance company's perspective, it looks like there wasn't enough interest to keep this thing going. So, when the current policies run out, we will not be able to renew. So, I may be looking at a winter event down south while I'm still covered.
He told me that the cancellation was due to 2 factors: 1. The loss ratio was a little higher than expected (premium should have been set around 2.2% or more rather than 1.5%), 2. The number of policies written was not high enough (little interest).
So, from the ins. company's point of view, if there isn't enough interest now at 1.5% of value, how can there be more interest if they intend to raise the premium to 2.5% or 3% of value?
Unfortunately, I think they had a great thing going and Orlando was really enthusiastic about the program. For me, I know I at least had peace of mind when out on the track that if something major happened, I was covered, regardless if my regular insurance would cover the car or not. And I still don't think 2.5% of value would be too high a cost to pay for insuring these vehicles. Of course, we would all like to pay as little as possible, but for another few $100, I would still be interested in having coverage. So, I'm hoping that with more awareness of the program, they would still be able to continue the program in the future.
According to him, the best thing we can do right now is continue to show an interest in the program and send him an email. Maybe by the beginning of next year, they could have a change of heart. Especially, if they new that even with a little higher premium, we would still be interested in obtaining coverage. But as it stands right now, the end is near.
Marty :X
- smankow - 08-10-2006
they really need to get their stories straight. Some are being told that policies would be renewed (including policies that are currently up for renewal) and others the exact opposite (no renewals at all). I spoke with them on Tuesday and was told that it would be status quo for existing customers. However, they changed their minds, yet again.
I agree that it's a great program, but they'll lose more customers with the large increase (1.5% to 2.5%). That's a point where it may start to get cost prohibitive.
- Phokaioglaukos - 08-19-2006
I do not have track insurance (I use State Farm which does not (yet) exclude DE) because the deductible is so high, but if I were to get it the first place I would call is: Fetterman Millinghausen & McNutt, Inc. and ask for Louis A. Millinghausen, Jr. Lou is very active in the Delaware Valley BMW Club and is a good guy. Here is his contact info and his description of how track policies work:
Fetterman, Millinghausen & McNutt, Inc.
1811 Bethlehem Pike, Suite 215
Flourtown, Pa. 19031-1111
Phone 215-233-3500
Fax 215-233-2188
Email: lmillinghausen@fmminsurance.com
Here are some details:
The coverage will not apply for your every day use of the vehicle, so you will need to keep your family automobile policy for that.
The annual premium is .015 X the value of the car.
Example: 1989 E30 M3, valued at $12,000 X .015 = $180.00 Annual Premium
The premium is not affected by the number of events that you do in a year.
There is a deductible of $1,000 that applies if the damage occurs in storage, transit or in the paddock. The deductible for damage that may occur "On Track" is 20% of the value that you set for the vehicle.
- Brian Minkin - 08-19-2006
Chris,
The policy and terms described in the insurance quote on the BMW looks as if they are selling the American Collectors Policy as the rate per thousand and detuctible terms are the same. I am with State Farm as well but do not want to risk my rates and status as a Classic Vehicle so I will need to find alternative track insurance next spring when American Collectors does not renew.