Hagerty versus State Farm

[Jeff10]

Hey Everyone,

State Farm has recently dropped direct coverage for our Broncos and has partnered with Hagerty. Last week I received the coverage docs and bill from Hagerty/State Farm. The premium with Hagerty is over 2X what I have been paying direct to State Farm. It won't break the bank; but, I don't know if it's worth looking at other options.

From what I remember when I looked at Hagerty before there could be problems if I use the Bronco off road. (Our '71 is more of a trail rig. The '70 is mainly street, although that may change if I cut the fenders and put on bigger tires.) That is one of my biggest concerns.

Just wondering if anyone else has been switched by State Farm, and if insurers other than Hagerty have been considered.

Thanks,

Jef

 

[okie4570]

We haven't been switched yet,this is the first I've heard of it.

 

[Galt72]

I got the same deal from All State a few yrs ago . They moved me off to Hagerty. I'm insured for 45K and its about $460 a year. I probably should up the amount. It's not written out so you can read it but there are codes in the policy that limit the miles and if you wreak it off road it won't be covered. It's basically weekend out to dinner and car show insurance. If there's a better deal out there I'd like to hear it. I'm also in CA which is a shit show for insurance.

 

[.94 OR]

I tend to drop liability on mine when I store it in the corner of the garage over winter. When I rebuilt the thing and put it back on the road in '94 I had to submit comp's to get the underwriter to approve the insurable value at $6K, which seemed like an expensive vehicle to me at that time. Fast forward, the documentation from State Farm still shows the $6K value. A bit concerning so I talked to my agent last month and he said that wouldn't be an issue as it would be insured at appraised value. Yeah, I still don't trust them. Then he mentioned that I could swap it to collector car category, parades, car shows, the like, and it would reduce the premiums but I couldn't drop liability over winter like I do now. He didn't mention not being able to take it off road, but I'm guessing there is language to that effect.

 

[Galt72]

I tend to drop liability on mine when I store it in the corner of the garage over winter. When I rebuilt the thing and put it back on the road in '94 I had to submit comp's to get the underwriter to approve the insurable value at $6K, which seemed like an expensive vehicle to me at that time. Fast forward, the documentation from State Farm still shows the $6K value. A bit concerning so I talked to my agent last month and he said that wouldn't be an issue as it would be insured at appraised value. Yeah, I still don't trust them. Then he mentioned that I could swap it to collector car category, parades, car shows, the like, and it would reduce the premiums but I couldn't drop liability over winter like I do now. He didn't mention not being able to take it off road, but I'm guessing there is language to that effect.

I can't find the no off road language in the policy but I was told over the phone at the time that it wasn't covered. It's been a few years so that conversation is foggy. I rarely take mine off road anymore but when I do I realize I'm on my own.... On the flip side, All State wasn't going to fix my bronco either if I wreaked so I was still on my own. It was basically PL and PD.

 

[Ether]

Offroad coverage may be simliar to track coverage for sports cars, if you are a serious rock crawler type and would make a claim you may want event or date specific coverage. My bronco has always been with Hagerty, and the main stipulation with the vintage/collector policies is the mileage driven per yr but I'm not sure on the specifics.

 

[Jeff10]

Hi Everyone,

Thanks for all the input.

A few years ago I wanted to increase the insured value of the 1971 with State Farm. I went to an appraiser experienced with Broncos as recommended by someone on the forum. Long story short... the appraisal came back and State Farm refused to insure it for that amount. Kind of frustrating. They agreed to insure it for about 40% of the appraisal value. They wouldn't provide the name of an appraiser they would accept. They suggested I go to someone who has good experience with my type of vehicle... and then they refused to accept it. Insurance companies have a way of making life difficult... sounds easy up front... get into an accident of some other type of claim and it becomes a problem. Ugh.

Jeff

 

[904Bronco]

First I have heard of this... But not surprised, I'm a Long time State Farm client.
I'm sure with all that is going on in the Insurance world they want to limit their expenses, especially here in Fire prone CA.
My insurance policy on my 2016 Shelby just keeps creeping up. Between the Registration fees, Insurance $$, and the price of fuel, it can be hard to own a car these days.
Specialty insurance, yes many restrictions.... We are trying to Leno's law passed here to get our older vehicles off the Bi-annual smog check, but they keep adding amendments, like Historical registration, and insurance related to that, which creates mileage per year limits...

I look forward to what others will share about their experiences.

 

[serial car restorer]

I've been with State Farm here in Oregon for 30+ years. Not because they are great, but due to inertia and a good relationship with my (now-retired) agent. My Bronco is still a ways from being road-ready, so I'm only carrying comp on it for now. No word on moving to Hagerty yet.

Hagerty does good stuff to support the classic enthusiast community, but their coverage is expensive, and more restrictive than some other similar coverage. I restored a '72 Porsche 911T a few years back, and needed classic coverage for it. Hagerty was the most expensive of the providers I checked with, and also had the most restrictions on use. So if I am asked to shift to classic coverage, for the Bronco I'll do some shopping first...

 

[fordguy]

Anybody using Grundy

 

[stout22]

Hagerty made it clear to me that off-roading is not allowed.

 

[Slowleak]

I had a lot of discussions with Hagerty about usage and coverage regarding daily usage, camping, traveling overnight, occasional trips etc.. They have guidelines but when asked detailed questions responses vary. They cannot answer specific questions such as “What is the definition of off-road?”
What it amounts to is that they insure classic vehicles and expect them to be treated as such. A lot is left to the adjuster’s discretion and why you were doing what you did. If you insure a Bronco as a collector vehicle and roll it on a trail, I can guess what an adjuster would say.

 

[stout22]

I wouldn't bother making a claim if I caused the damage off-roading.
I want coverage for theft, fire, on road accidents.. basically the same things my mall crawler would be covered for.

 

[ep67bro]

I have had Hagerty on all my classic broncos for years. Was never told I couldnt off road but would highly doubt they would cover it if it rolled on a trail. I was most concerned with accidents on the road and it getting stolen. I alos have never daily driven mine. I rarely drive it anymore. There was a time when I did and I just had Nationwide insurance at that point, not classic or collector car insurance. They will do an agreed value and mine was done so long ago I bet it is way under insured. The only thing they wanted was pictures of all four sides of the truck and wanted to know if it was being stored in a garage or on street. Mine have all been garage kept. I think my policy for one bronco for 6 months is about $280.00.

 

[serial car restorer]

They will do an agreed value...

Agreed Value is good, but don't let them do Stated Value. Not the same thing. Agreed value is what they will pay for total loss. Stated value is a maximum or capped value. They can pay less than stated if they can justify by comps.

 

[phred]

Hagerty also has an add on to pay agreed value and you get the car as well. I have hagerty on my broncos and travelers on my daily’s, house and boat. It’s all racket. My wife was the chief auditor for one of the largest insurance companies in the US. I’ve heard the stories. I think the most important thing is getting good agent that understands your needs and concerns.

 

[Jeff10]

Hey Everyone,

Lots of great information. Thank you for sharing.

@serial car restorer: That is a great way of explaining the difference between agreed and stated value.

@ep67bro : My policy is around the same premium as what you wrote above.

The whole question about what is covered, and what's not, is hard to figure out. Not just with Broncos, but with new model Jeeps (or new gen Broncos) when offroad. About the only trail riding we do now is an annual trip to Moab. I think the consensus is that if you are on a county, state or federal road insurance would cover a claim. There are a lot of trails that are technically county roads in Grand County such as Shafer Trail or Long Canyon where coverage would apply. I'm curious how the Jeep rental companies in Moab deal with insurance. Most of them require renters to carry insurance.... I don't know what happens if there is a loss and insurance doesn't cover it. I don't believe most renters question their financial responsibility in that case. That would be quite the wake-up call to be on the hook for $40k or $50k...

A friend in Moab rolled his 3-year old Jeep on Hell's Revenge. Total loss and a claim wasn't filed because of the trail it was on.

I'm wondering now about liability should someone get hurt when off-roading. Would that also be excluded?

The insurance industry has really changed... it is hard to find a good agent that knows his trade, and that will be around for more than a couple of years.

Thanks again.

Jeff

 

[okie4570]

Just happen to get our State Farm declarations for our vehicles yesterday. Doesn't look like anything has changed for our broncos.

 

[Slowleak]

“I think the consensus is that if you are on a county, state or federal road insurance would cover a claim. There are a lot of trails that are technically county roads in Grand County such as Shafer Trail or Long Canyon where coverage would apply.”

I would not be comfortable making that assumption. If you go with Hagerty you should contact them for verification. If you are attending a Bronco related event they are a little more lenient.

 

[stout22]

I'm wondering now about liability should someone get hurt when off-roading. Would that also be excluded?

The insurance industry has really changed... it is hard to find a good agent that knows his trade, and that will be around for more than a couple of years.

Thanks again.

Jeff

Well, I guess I need to remove my rear seat - no riders