Question about Pen Fed and garage insurance on Shelby?

[dubbsfaris]

Everyone calm the fudge down.

I refinanced my '13 a couple months back to a credit union.
I also received an eerily similar letter.
I cursed.
I called loan department.
I was informed that if I speak with some loan lady, they grant waivers.
I spoke with loan lady.
I was told by loan lady my insurance agency should fax them letter explaining stuff.
I did this.
I kept storage insurance and everyone lived happily ever after.

Also, if you wreck your car while driving uninsured...because that's what this would be if you wreck your car while it's only on storage.... you get in trouble and im sure they find a way to recoup their cash.

I've been doing seasonal coverage or whatever for 10 years. Shelby goes from 660ish for 6 months to 110.

Wow, im really surprised they would be okay with that. I don't know about other states, but I can speak for Texas- a car loan does not provide a lender any judgment but the repossession of the asset in question. If that is a totaled GT500 with a 50k balance, that lender is out 35k at the minimum.

I guess they could sue for damages, but just the process would be costly and they would be burdened with proof of intent. To think a simple NO solves all those questions and concerns make it a no brainier to me.:shrug:

Then again, when we did the Shelby Run Europe a couple years ago, I believe there was at least one car that had a loan still that got a waiver from the lender to leave the country. That's REALLY taking a risk.

Meanwhile, we can barely get insurance coverage to do a damn car show, much less driving event.:bs:

 

[ReVviNg HiGh]

Who was that directed at?

The OP who doesn't drive his car all year round and enjoys saving money by not having a nice policy for year round coverage, or someone else?

Op. Grundy policy is between 200-400 a year. Not expensive and don't have to deal with any issues with financing company. Friends of mine also has cars and motorcycles stolen from garages so for. Few bucks a year it's good insurance

 

[MJN]

I have tried with a few different loan companies dropping comp and collision ins but have not found one yet willing to agree while having a loan. That being said I have been able with no problem drop comp and still keep collision. Does it save me a lot, not really but its something.

 

[dubbsfaris]

On my GT350, I had to go with Grundy. Because half the value of that car was tied up in Shelby conversion, I knew it was going to be a huge problem if I ever got in an accident with regular insurance. I have a buddy with one in PA that got rear ended by some kid in his, and it was a nightmare for him. Neither his insurance company nor the kid's wanted to pay for more than FMV for a 2011 Mustang GT. Its a bit off topic, but my point was that Grundy was great for that car, and didnt cost me any more than USAA insurance.

 

[Norton]

Call Grundy and get yourself a nice agreed value policy with full coverage for all year use.

Op. Grundy policy is between 200-400 a year. Not expensive and don't have to deal with any issues with financing company. Friends of mine also has cars and motorcycles stolen from garages so for. Few bucks a year it's good insurance

On my GT350, I had to go with Grundy.

I'm interested in this (or a similar) route. Does anyone have experience filing a claim through a specialty policy provider like Grundy or Hagerty? I've NEVER had a problem with my current carrier paying a claim or jacking my rates (beyond their initial high level). I'd hate to run into such problems, even if the rates are lower elsewhere...

 

[dubbsfaris]

I'm interested in this (or a similar) route. Does anyone have experience filing a claim through a specialty policy provider like Grundy or Hagerty? I've NEVER had a problem with my current carrier paying a claim or jacking my rates (beyond their initial high level). I'd hate to run into such problems, even if the rates are lower elsewhere...

Its mainly for owners of Supersnakes, GTS, Terlingua, GT350, or any classic/non modern collectible car.

Its been my experience that once you pay a dealer their price, you won't see that or anything more for a car under standard insurance. They won't care what mods you or anyone else has done.

 

[ReVviNg HiGh]

I'm interested in this (or a similar) route. Does anyone have experience filing a claim through a specialty policy provider like Grundy or Hagerty? I've NEVER had a problem with my current carrier paying a claim or jacking my rates (beyond their initial high level). I'd hate to run into such problems, even if the rates are lower elsewhere...

I had to sign a limited use agreement. No racing, commuting, errands, and must be garage kept. No mileage restriction and agreed value. Pleasure use only. It's underwritten through Philadelphia insurance com which is a good company. Most times these collector policy companies are a subsidiary of a large insurance co

 

[Norton]

Thanks, guys. Sounds like a little more research may be in order...

 

[tomshep]

I had to sign a limited use agreement. No racing, commuting, errands, and must be garage kept. No mileage restriction and agreed value. Pleasure use only. It's underwritten through Philadelphia insurance com which is a good company. Most times these collector policy companies are a subsidiary of a large insurance co

Yep, sounds like Grundy to me. I had it on a prior Cobra. Only thing I didn't like was the vagueness of "pleasure use only". Never filed a claim and always had good service.

Tom

 

[72MachOne99GT]

Wow, im really surprised they would be okay with that. I don't know about other states, but I can speak for Texas- a car loan does not provide a lender any judgment but the repossession of the asset in question. If that is a totaled GT500 with a 50k balance, that lender is out 35k at the minimum.

I guess they could sue for damages, but just the process would be costly and they would be burdened with proof of intent. To think a simple NO solves all those questions and concerns make it a no brainier to me.:shrug:

I guess that's why they go through a process. They won't let any moron make the insurance adjustment.

And really, to me, they aren't out anything less through this insurance than they are if I take my car during any other month and put it into a ditch. Honestly, they're still getting their money with NO chance of having to cover another motorist.

Literally, when my car is put away for 4-5 months, there is ABSOLUTELY zero chance of me injuring another vehicle or motorist while driving that vehicle.

 

[ReVviNg HiGh]

Yep, sounds like Grundy to me. I had it on a prior Cobra. Only thing I didn't like was the vagueness of "pleasure use only". Never filed a claim and always had good service.

Tom

It is vague. Pleasure use is broad. Besides the stated limitations, pleasure use falls under the unstated as I was advised by Grundy.

 

[mach330]

I'm currently financing my car thru a local credit union. I changed my insurance to garage insurance for the winter so I could save some cash since I won't be driving it in the winter. My credit union sent me a letter saying that I have to put full road insurance on my car or they will just charge me more on my monthly payment for it. I've read where a lot of guys here use Pen Fed cause of the great financing. Do they allow you to just have garage insurance on your car or not? If they do I'll probably try to switch over to them.

I have PenFed and if you call them, yes, they will let you put storage-only on it. You have to mail them a letter stating where it will be located and how long you plan to store the vehicle.

 

[tomshep]

It is vague. Pleasure use is broad. Besides the stated limitations, pleasure use falls under the unstated as I was advised by Grundy.

I went through a few scenarios with my on-line representative and printed all of those emails. I wanted to have the proof they stated they would cover when I gave them different situations. Those printouts went in the folder with the policy. Would it have helped, who knows.

Tom

 

[dubbsfaris]

I guess that's why they go through a process. They won't let any moron make the insurance adjustment.

And really, to me, they aren't out anything less through this insurance than they are if I take my car during any other month and put it into a ditch. Honestly, they're still getting their money with NO chance of having to cover another motorist.

Literally, when my car is put away for 4-5 months, there is ABSOLUTELY zero chance of me injuring another vehicle or motorist while driving that vehicle.

That's cool then. :beer:

I just didnt know people would trust a client by how they sound on a phone or ability to write a letter. :shrug:

Like the point was made earlier, YOU would tell your lender you aren't driving your car under storage coverage, and it wouldn't be driven. So yeah, no chance at a loss. But then the next guy calls in, says the exact same thing, only he isn't honest, wrecks the car, but since that guy didnt have road insurance, the lender doesn't get a check from the insurance company, and they are out a LOT less. Im not trying to be argumentative, but have worked for underwriters and with loan officers, and just never thought they would even consider opening up some circumstance to not have an asset covered from monetary loss.

As a lender, I'd say the only way to have ZERO chance to not add risk to that scenario is not allowing it in the first place. Comp/collision covers every possible scenario for vehicle loss, storage coverage does not. That leads me to draw an easy conclusion, and if my customer complained about carrying full insurance, I would have to reply the obvious- its my money on the line, not yours.

 

[ReVviNg HiGh]

I went through a few scenarios with my on-line representative and printed all of those emails. I wanted to have the proof they stated they would cover when I gave them different situations. Those printouts went in the folder with the policy. Would it have helped, who knows.

Tom

Good call. The policy didn't have a "definition" of what pleasure use is. I only found it stated in the limited use acknowledgement form I signed. Since there is no definition, it is hard for them not to pay a claim against the policy if you were out on the way to your gym or a casual drive. It really just helps them reduce exposure and risk to let the owner decide what is acceptable as pleasure use. It will cause the owner to drive less based on their preceived definition of pleasure use.

Also this is an agreed value policy with no mileage restriction so you are paying more in premium than a standard collector or classic policy. I searched around and most companies have mileage restriction and strict classic or collector guidelines.

I personally only drive the car every other weekend for a car meet or coffee meet. Only if there is a negative % chance of rain. And plan on doing car shows this spring and summer. Mostly only when I'm meeting up with car friends.

 

[ReVviNg HiGh]

Its mainly for owners of Supersnakes, GTS, Terlingua, GT350, or any classic/non modern collectible car.

Its been my experience that once you pay a dealer their price, you won't see that or anything more for a car under standard insurance. They won't care what mods you or anyone else has done.

Grundy will insure any sports or muscle car as long as it's garage kept, have an additional household car and show proof, and sign acknowledgement of use. The premiums are slightly higher than a standard classic or collector policy. It's agreed value so you tell them what you want it insured for. You will just pay more premium. I have mine insured for market value plus mod value on my 03 with 21k miles with collision and 500k liability.

 

[72MachOne99GT]

That's cool then. :beer:

I just didnt know people would trust a client by how they sound on a phone or ability to write a letter. :shrug:

Like the point was made earlier, YOU would tell your lender you aren't driving your car under storage coverage, and it wouldn't be driven. So yeah, no chance at a loss. But then the next guy calls in, says the exact same thing, only he isn't honest, wrecks the car, but since that guy didnt have road insurance, the lender doesn't get a check from the insurance company, and they are out a LOT less. Im not trying to be argumentative, but have worked for underwriters and with loan officers, and just never thought they would even consider opening up some circumstance to not have an asset covered from monetary loss.

As a lender, I'd say the only way to have ZERO chance to not add risk to that scenario is not allowing it in the first place. Comp/collision covers every possible scenario for vehicle loss, storage coverage does not. That leads me to draw an easy conclusion, and if my customer complained about carrying full insurance, I would have to reply the obvious- its my money on the line, not yours.

I get what you're saying. However, if I wreck the vehicle and they don't get the money through insurance, I assume they have ways to obtain the value from the person who effectively violated the agreement by driving essentially uninsured. Wouldn't they?

 

[MJN]

I know few banks around me in il use to allow winter storage but would ask for your tags off car. Then in spring you let them know and ins is back to full coverage and you get your plates back.

 

[David Neibert]

I get what you're saying. However, if I wreck the vehicle and they don't get the money through insurance, I assume they have ways to obtain the value from the person who effectively violated the agreement by driving essentially uninsured. Wouldn't they?

It's much easier to get paid from the insurance company. To get the money from the owner of the car would require suing them and the best case scenario would likely be the bank getting repaid in installments over a lengthy period of time. There is also the risk that the owner of the car would file bankruptcy.

David