Slipstream - July 2017

maverickpca

The monthly newsletter of the Maverick Region of the Porsche Club of America

Insuring your Porsche: Part 1 – Classic Porsches

By Justin Husman

Photo by Jim Hirsch

orsches are some of the most beautiful performance

machines built, and they occupy

P

an interesting position in the automotive

world. They are the exotic car you can drive

every day comfortably, they are the daily driver car that

you can track comfortably, and they are the collector

car that you can buy at a dealership without an invitation.

As such, they can be tricky to insure correctly, and

all insurance isn’t necessarily correct. This is the first

in a three part series about insuring your Porsche, and

today’s topic is insuring your classic Porsche.

14 July

Classic car insurance is different than insuring a

daily driver. Classic polices are written on an “agreed

value” basis, which is different than most insurance.

When you purchase a policy for your everyday car, at

the time of loss the car will be valued at actual cash value

– whatever they are selling for today. As we all know,

classic Porsches are not listed in bluebook, and it seems

that their values go up every year. With an agreed value

policy, you are able to set the value of your car before

you purchase the policy, so you know exactly what you

will be paid at the time of loss. This results in a “no

negotiation” claims process, painless and simple.

Classic agreed value policies do have some stipulations,

which vary from company to company. All of

them require the car to be garaged, and most require

limited driving. A lot of people think that means that

you are only allowed to go to shows and parades, but in

reality, it means staying within your mileage plan ( generally

somewhere between 1,200 – 3,500 miles a year).

You must also have a daily driver automobile for each

driver in the household.

Right now, I know some of you are saying, “But my

Porsche isn’t 25 years old, so how does this apply to me?

Thanks for wasting my time, insurance man.” In order

to qualify for an agreed value classic type policy, the car

must be either 25 years old, or have some collector interest.

Two-door Porsches are almost always considered collectible

cars, especially if they are presented to a classic

insurance company by an agent who specializes in

this type of policy. Not every classic company will write

more modern Porsches, but there are some that will.

Having a good agent who knows the classic market is

the best way to get classic agreed value coverage.

The real question most people have about insurance

is how much it will cost. The beauty of a classic

agreed value policy is that they are very inexpensive;

for example, a 1979 911 SC valued at $30,000 would

cost approximately $300 a year. For more modern cars,

it’s a little more expensive, but not by much -- $30,000

coverage on a 2009 Boxster would cost approximately

$398 for the year. As long as all the underlying usage

and garaging requirements are met, classic insurance

is cheap and very worthwhile.

In part 2, I will discuss how to best cover your daily

driver Porsche, especially if it is modified or is of high

value.

Editor’s Note: Justin Husman is the owner of The Phoenix

Insurance. His agency specializes in exotic, classic, and custom

car insurance. Justin has been in the insurance industry

for 15 years.

More magazines by this user
Similar magazines