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I recently purchased a 2017 AMG GTS. It was a one-owner, always garaged Southern California car. The car is 7 years old and had 13,000 miles on it. As I drove away I called Hagerty, who has insured all my previous sports cars to add it to my policy. Someone took all my info and said because this was considered a 'supercar' it would have to get elevated. About two hours later someone called and told me they were denying me coverage. They said to call back after a year of ownership. Has this happened to anyone after purchasing this car. I have no accidents, no claims on previous cars.
That doesn't sound right, according to their own website they cover "newer exotic cars". Are you planning on daily driving the vehicle? I know they will not cover daily driver use no matter the vehicle, that is the only thing I can think of.
Insurance is pretty inflated across the board. My broker agent said she has no violations and her auto rate went up 30%. Similar to HHS550 I pay about $1300 every six months for my GT and a 2005 Lexus GX. Before I bought my GT, 2 years ago, I had my agent quote it and a 2020 Ferrari California. Only company that would cover my GT was Progressive. And they couldn't find anyone to cover the Ferrari. The GT is considered more of a "super car" but more so the price of it and the parts make it more difficult to insure. That is true with pretty much all high end vehicles. Another factor is your driving record. I don't think you mentioned that in the post. That may have been the reason they denied you.
In California, motorists can post a bond instead of carrying auto insurance, but it's not a common practice. Here's a summary of the costs and terms: *Bond Requirements:* 1. *Amount:* $35,000 bond (surety bond or cash deposit)2. *Duration:* Bond remains in effect for 3 years3. *Purpose:* Ensures financial responsibility for damages or injuries caused by the motorist *Costs:* 1. *Bond premium:* 1.5% to 3% of the bond amount annually (e.g., $525 to $1,050 per year)2. *Filing fee:* $25 (one-time payment)3. *Collateral:* May require collateral (e.g., cash, securities) to secure the bond *Terms:* 1. *Motorist must:* Maintain a clean driving record and comply with California's financial responsibility laws2. *Bond may be:* Canceled or revoked if the motorist fails to meet requirements or is involved in an accident without sufficient funds3. *Alternative:* Motorists can also deposit $35,000 in cash with the DMV instead of posting a bond.
In California, motorists can post a bond instead of carrying auto insurance, but it's not a common practice. Here's a summary of the costs and terms: *Bond Requirements:* 1. *Amount:* $35,000 bond (surety bond or cash deposit)2. *Duration:* Bond remains in effect for 3 years3. *Purpose:* Ensures financial responsibility for damages or injuries caused by the motorist *Costs:* 1. *Bond premium:* 1.5% to 3% of the bond amount annually (e.g., $525 to $1,050 per year)2. *Filing fee:* $25 (one-time payment)3. *Collateral:* May require collateral (e.g., cash, securities) to secure the bond *Terms:* 1. *Motorist must:* Maintain a clean driving record and comply with California's financial responsibility laws2. *Bond may be:* Canceled or revoked if the motorist fails to meet requirements or is involved in an accident without sufficient funds3. *Alternative:* Motorists can also deposit $35,000 in cash with the DMV instead of posting a bond.
Damn..that sounds like you need a PHD in insurance
That doesn't sound right, according to their own website they cover "newer exotic cars". Are you planning on daily driving the vehicle? I know they will not cover daily driver use no matter the vehicle, that is the only thing I can think of.
Hagerty can be picky about what cars they cover and how old they are. I stopped using them several years ago. Unless you want an agreed/guaranteed value, you may find better options with household name insurance companies.
2020 GTA; 2022 Audi e-tron GT, 2022 Ford F-150; 1926 Rolls-Royce Springfield 40/50 Playboy roadster
Originally Posted by HHS550
Anyone ever chose this path? Positives/Negatives?
In California, motorists can post a bond instead of carrying auto insurance, but it's not a common practice. Here's a summary of the costs and terms: *Bond Requirements:* 1. *Amount:* $35,000 bond (surety bond or cash deposit)2. *Duration:* Bond remains in effect for 3 years3. *Purpose:* Ensures financial responsibility for damages or injuries caused by the motorist *Costs:* 1. *Bond premium:* 1.5% to 3% of the bond amount annually (e.g., $525 to $1,050 per year)2. *Filing fee:* $25 (one-time payment)3. *Collateral:* May require collateral (e.g., cash, securities) to secure the bond *Terms:* 1. *Motorist must:* Maintain a clean driving record and comply with California's financial responsibility laws2. *Bond may be:* Canceled or revoked if the motorist fails to meet requirements or is involved in an accident without sufficient funds3. *Alternative:* Motorists can also deposit $35,000 in cash with the DMV instead of posting a bond.
The only negative is if you have an accident. Then you could be bankrupted. Other than that I see nothing wrong with this strategy.
2020 GTA; 2022 Audi e-tron GT, 2022 Ford F-150; 1926 Rolls-Royce Springfield 40/50 Playboy roadster
Originally Posted by HHS550
Yup, that's the first thought that came to my mind. Would my personal umbrella policy kick in? Will putting all my vehicles in an LLC shelter me?
No and no (as to the latter question, if you are the operator; some states limit the liability of the owner). An umbrella policy will require certain minimum limits for primary coverage. And a bond will not be sufficient. The most uncertain cost involved in an accident is legal fees if a lawsuit is filed.