Does Collector Car Insurance Cover Car in Transit
 

I have a car we just recently purchased and enlisted a carrier to transport from Washington to Chicago.

The carrier uses 26" enclosed box trucks to transport vehicle. The party who we purchased the car from assisted in installing I hooks in the floor of the truck as well as ratchet strapping the car in place for transit. The vehicle was very well secured - cross strapped and tighted by removing all movement out of the suspension.

Apparently one or several of the anchors failed and the vehicle broke loose and hit the front wall of the truck. The damage has been estimated in the $2500 range by the party that restored the car.

My question is - I have the collector car insurance sold through Barrett Jackson and written by Chartis. The policy does have an inclusion for recently purchased items as long as they are reported within 90 days of purchase.

Being that I anticipate issues with the carrier's insurance, would my coverage cover such a vehicle during transport with a carrier? Would they act as the first line of coverage and subrogate the carriers insurance to be reimbursed for damage?

Re: Does Collector Car Insurance Cover Car in Transit
 

The carriers insurance should be the first/primary one to pay the claim. They will probably pay out of pocket for $2,500 in damages as I'm sure their deductible is higher than $2,500. They may just want to keep it from going their claims record if the damages are lower or near their deductible. My guess is they will work with you directlyto get it fixed without the involvement of their insurance carrier.
If they are not handling your loss in a satisfactory manner or if they just won't pay, turn it in to your carrier and have them handle this loss under your policy. They will subrogate against the negligent party, the motor carrier. They were negligent because their straps failed or weren't mounted correctly. Your carrier will squeeze them for the funds. Insurance companies like to subrogate or collect from the negligent party after they pay a claim that wasn't their insureds fault.

Re: Does Collector Car Insurance Cover Car in Transit
 

The carrier should pay the claim as stated above. If this is a National company they are not going to drag this out over $2500 and risk losing their reputation on this move.

Re: Does Collector Car Insurance Cover Car in Transit
 

Contacted my insurance company - I have the collector car coverage through Barrett Jackson underwritten by Chartis.

Even though I had not added the car yet it is still covered. My policy covers any newly acquired items for 90 days automatically after purchase.

They told me they will resolve the claim with me and subrogate the carriers insurance company. This is good for me as most likely it would have become a civil matter that I had to go to court over. In this case, my insurance company has to handle collections and/or court proceedings.

Re: Does Collector Car Insurance Cover Car in Transit
 

Once subrogation begins with Chartis, the motor carrier will most likely pay up. Depending on the carrier, subrogation can get nasty; some companies are more aggressive than others in collecting from negligent parties.
The problem with losses like these are where a carrier is self insured (no coverage) or they carry a deductible of $10,000 or so. You end up dealing with the motor carrier and that can be a pain.

Re: Does Collector Car Insurance Cover Car in Transit
 

When I bought my two Coca~Cola vintage race cars I had them insured through Parish Heacock at the time. During transport from the sellers place in Ohio to my place on the west coast one of my cars broke lose and was rolling into my other car damaging both of them to the tune of 35K. The transport company turned it into their insurance and though it took some time ( 4 months) to get paid eventually I did.
I did not want to put a claim in with my carrier.

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Re: Does Collector Car Insurance Cover Car in Transit
 

By filing a claim with your carrier it will most likely show up as a claim under your name with the "keeper of records" that insurance companies use. Next time your homeowners, car, boat, motocycle, etc renews, this will be used to rate your risk and determine your premium. Just something to consider.