Auto insurance is one of those annoying things we don’t want to pay for it because you are betting against yourself. You can’t get in an accident because your rates will go up or they will drop you. You can’t do without it because if you do get into an accident, you will need insurance to help defray the expense. But if you are reading this is tis because you lie me, chose to get it or are at least looking at the option.
When choosing insurance for your Mustang, there are several issues to consider. How often will you drive the car? Are you interested in collector’s insurance or regular auto insurance? Who will drive your Mustang? How many miles per year do you expect to drive the car? Will you be racing? Will the car be trailered? What will it cost?
Collectors car insurance:
If your Mustang has a collectible status and will be driven occasionally, collector’s insurance is probably the best choice for you. Hagerty Classics Insurance is owned and operated by car collectors who understand and appreciate the special needs of car enthusiasts. Which Mustangs qualify for Hagerty Classic Insurance and other kinds of collector insurance? Classic Mustangs, of course, qualify. And, believe it or not, even trailers qualify.
Your Mustang qualifies for collector insurance even when undergoing a full-scale restoration. Which vehicles don’t qualify for collector insurance? Home-built cars, Cobra replicas, vehicles less than 25 years old, heavily-modified Mustangs, Mustangs used for commercial purposes, and daily drivers.
The nice thing about Hagerty Classic Insurance is low rates. Low rates are possible because Hagerty picks and chooses its clients carefully. Collector car insurance companies like Hagerty want clients with good driving records. If you’ve had more than two minor violations in the past 2 to 5 years, few collector car insurance agencies will insure your Mustang. If you have had a DUI, reckless driving, or excessive speed violation in the last 3-6 years, collector car insurance agencies like Hagerty will not insure you.
When you have collector’s insurance, who may drive your Mustang? Generally, collector car insurance agencies want clients with at least five years of licensed driving experience under their belts. This means your 16 year-old driver is ineligible.
You must also have an insured daily-driver vehicle to purchase collector insurance. And yes, you need to provide proof for the collector car insurance agent. Also, you will need to provide the agency with photographs of your vehicle, keeping an identical set for yourself.
It is up to you and the collector’s car insurance agent to determine your Mustang’s value. Insurance premiums will hinge on your Mustang’s average worth and condition. A ’69 Boss 429 is worth more than a ’65 six-cylinder hardtop. If you try to insure your ’65 six-cylinder hardtop for $50,000, the insurance agent is going to sigh heavily, then tell you politely about unrealistic expectations. A completely restored ’65 six cylinder hardtop isn’t going to be worth much more than $15,000 to $20,000 at best. A ’69 Boss 429 in identical condition is going to be worth the $50,000-and more.
Any time you try to insure a vehicle for much more than its marketplace worth, insurance agents become suspicious, and rightfully so. The objective of auto insurance is to replace your loss, not profit from it.
Occasional Driver Insurance:
Occasional drivers cost less to insure than daily drivers. This makes it tempting to claim the vehicle is driven infrequently, while driving it regularly. Most insurance companies insist on a mileage statement, annually or semiannually, if you’re insuring it as an occasional driver. And the annual mileage limit is typically 2,500 miles for collector cars. Like any automobile insurance, your use of the vehicle determines the rate. The more you’re going to drive it, the more you can expect to spend.
Your deductible is what you pay before your insurance covers the rest. For example if you have an accident and it amounts to $6000 damage and you have a $500 deductible, you pay $500 and the insurance company pays $5,500. The lower your deductible, the higher your insurance rates. Aside from the higher rates, why would you want to select a lower deductible. Well, if you almost never drive our collector car, it has very little chance of getting damaged. The odds are with you if you get a higher deductible. If you drive very seldom, but drive like hell, get the lower deductible!
Stated value insurance:
Stated Value insurance coverage falls somewhere between regular auto insurance and collector car insurance. Stated Value coverage is a full coverage program designed to insure your Mustang for nearly any value you desire. For example, your ’65 Mustang convertible is a daily driver used for commuting. Collector’s insurance won’t touch it. Regular auto insurance (collision and comprehensive) won’t pay the full amount for the loss. Stated Value covers that gray area in between.
Stated Value insurance works well for those of you with ’74-’78 Mustangs or late-model Fox-body Mustangs, which collision and comprehensive won’t begin to cover. Your restored ’76 Cobra II isn’t worth much in terms of insurance value. Neither is an ’84 20th Anniversary Edition Mustang GT. Stated Value enables you to insure these cars for what you have invested in them. If your ’76 Cobra II is worth $20,000 to you, Stated Value will normally cover the loss in full. Most insurance companies want some form of proof on the loss value of your Mustang. They like to see receipts, before and after photos, the bill of sale, and anything else that helps justify the insurance of your Mustang for a given amount. Some Stated Value policies are vague, and this is where you have to be careful. They may not cover your loss in full, especially if the car was in questionable condition at the time of the loss or damage. Check out the details with your agent. Then get it in writing.
Stated Value coverage is for older daily drivers and vehicles that don’t always fall under collector’s status. Collector’s insurance will not cover the daily driver because there are mileage limitations.
A ’79 Mustang Indy Pace Car replica has historical significance. Stated Value works well here but costs more. Collector’s insurance costs less, but there’s a mileage limit. Choose coverage that works best for your situation.
If you have an accident:
You will need to get your Mustang repaired and every auto insurance company handles claims differently. Shop for the right insurance company and getting it everything in writing. Classic Mustangs, should be insured to receive the best possible collision coverage, genuine Ford parts, where possible, or the best quality reproduction parts when Ford parts are not available.
The repair shop is an important factor, choose an insurance company that will allow you to pick the repair shop so you can examine their work and speak with customers. Craftsmanship, is important no one wants a quarter-panel with a pound or two of body filler. There comes a point after an’ accident when sheet metal damage warrants replacement, not liberal doses of dent-pulling and body filler. A good rule of thumb is to keep body-filler usage to a minimum. A thin layer of the stuff is fine. But, any time filler thickness rises above 1/16 inch, it’s time to either rework the sheet metal or replace it. If new sheet metal is unavailable, allow the shop to source good used sheet metal void of rust and accident damage. Avoid reproduction sheet metal of a lesser thickness.
Whenever an accident leads to sheet metal replacement, panels must always be welded at the factory seams. Say “no” to any clip-car jobs where the back or front half of another Mustang is welded to yours. If a collision has done extensive damage and you want your Mustang fixed, negotiate with both the insurance company and body shop. A severe rear-end impact, for example, calls for extensive man hours, a frame machine, and heavyweight finish work to get the body right. In any case, always insist on accuracy and sheet metal joined at the factory seams. When you settle for less, you settle for a job that’s unsafe.