I highly recommend that you check the insurance coverage on your Special Interest vehicles. A client recently discovered that the words “Replacement Coverage” doesn’t mean what it sounds like. In this case it was a Porsche 911 GT3 RS. He had owned it for 10 years and never really thought about the market value until it was stolen. The insurance company then offered a fraction of its true value in compensation.

If you own a Special Interest car that has appreciated in the recent run up due to shortages and strong collector interest, you need to have a “19A endorsement” on your policy. Here is the link to the application form:

https://www.fsrao.ca/media/14961/download

LIPSTICK ON A PIG
Avoiding Life’s Lemons

Lipstick on a Pig features excerpts from the vast library of Maurice Bramhall’s experiences.

An enthusiast buys a special interest car to restore and put on the road. They pay $15,000.00 for the car and flatbed it to their mechanic.

They call their regular insurance company and obtain a policy for it, and when asked how much they paid for it, the owner says $15,000.00. The owner doesn’t think a thing about it until a total loss occurs.

They had $12,500.00 put into it before it went on the road (for a total investment of $27,500.00). Then, a total loss was caused when the car was parked in their driveway. The insurance company had put a “19 endorsement” on the policy which limits them from paying any more than the $15,000.00. Due to this limit, the car is a write-off.

The lesson in this story is that you have to read the fine print at least on the page where it lists your vehicles and their respective coverage.

A “19 endorsement” limits the amount covered, a “19A endorsement” covers an Agreed Amount for a specific period of time, usually five years.

LIPSTICK ON A PIG
Avoiding Life’s Lemons

Lipstick on a Pig features excerpts from the vast library of Maurice Bramhall’s experiences.