Insurance Coverage

IMG_0965We have a reader of that’s currently dealing with an insurance issue. I’d like some feedback from the ’67 Beetle community on this topic, as I know he currently has some struggles getting an agreed value for the car. We all know that these gems are rising in value each year. Your comments will help document for future readers. What’s your ’67 Beetle insured for? Have you had insurance issues in the past? Let’s keep it to facts, if possible.

I had a back fire which caused fire on my baby. Fortunately, the fire department was close by and no damage to engine; just parts as seen in pictures. I had comprehensive insurance with _ _ _ _ and they are evaluating value of VW bug before fire at $4,000 and repairs at $2,500. I need help to evaluate value and cost of repairs. If ratio of cost of repairs divided by value of bug is greater then 70% then considered a loss. The purpose of comprehensive insurance was to be able to restore her.

Vintage Volkswagen – Insurance CoverageVintage Volkswagen – Insurance Coverage
Again, please join the conversation below.

Posted by Eric Shoemaker

Hello, I'm Eric. I started Air-Cooled Artifacts (previously, and Lane Russell). I drive a '67 Beetle daily and love to share vintage Volkswagen stories with the world.

  1. First to comment. We have our ’67 Beetle insured with Grundy at an agreed value of $20,000. It was $32,000 in SF and Austin. However, they looked at the market once we moved to Atlanta and dropped the value. But, I’ll take it over a lower amount.

  2. Strange how insurance companies differ. The person that we bought our bug from had it insured for $15K. it was in poor to fair condition. Triple A would not consider it a collector car unless a value of 15K or greater was accessed, Triple A assessed the car at about what we paid for it $5,500.00. Once we restored it to a high level we had them send out an appraiser and they appraised it at the $15K required to get the collectors car insurance.

  3. I would agree with your assessment Eric- on the value that is. Another thing to reference here is previous posts that address carb issues. More particularly- braided cloth&rubber fuel lines that are stock application. They simply get dry, crack, and then cause what you see in the picture. Simple to acquire and install… and lots less expensive than this fire. Sad to see it and easy to avoid if you know what to do.

  4. All standard Insurance is like this. Comprehensive coverage is only to cover reasonable damage, not to exceed a specified value of the car. 70% actually seems pretty generous. If the Insurance company has a shop that will repair it for $2500, that is within their policy, take it and get it fixed. If the cost to repair it exceeds their ratio, help them out by getting ads of similar cars in our around your area to support a higher value. The folks managing your claim just need to to make sure the numbers are within their guidelines. If you have receipts for improvements that will contribute to a higher value (recent motor, trams, paint, interior etc), dig those up as well. Lastly, and this is something everyone should do, reexamine your insurance. If you own another fully insured daily driver, you should have a collectors policy with an agreed value, even if you drive the car a lot. It’ll protect you better. Oh, and one other thing, carry a fire extinguisher, unless you car catches on fire as you pull into a firehouse bay, it’ll help lessen the damage.

  5. I purchased a ’67 Zenith Blue Beetle about a year and half ago, for $13,000. This bug was in very good condition, complete exterior repaint, and complete interior replacement, headliner, seats, door panels carpet etc. When I got it home (I live in Canada) I had an appraisal done by a specialist in classic vehicles, and he set it’s value at $22,000 CDN, or about $16,500 USD at todays exchange rates. Without an appraisal like this, and insurance company is going to be reluctant to cover the cost
    at what we might think it is worth, as of course they have set the premium using some kind of book value for the car. My premium for insurance recognizes that it is a classic vehicle and is more likely to appreciate rather than depreciate. What might be useful is trying to work with your insurance to determine replacement value of the car. If it is a write-off in their terms, then see if you can locate a similar condition vehicle for sale and see how it’s price compares to the $4k the insurance company is offering. You do have to be realistic about the condition of your car, we all love these little bugs and we may have a tendency to overstate the condition they are in. If you can honestly demonstrate that you can’t replace it in kind and condition for their valuation, then they may be inclined to upgrade their value.

  6. Another possibility: 1. negotiate the best ‘write-off value’ you can get. 2. take the cash settlement. 3. then buy the car back from the insurance company (maybe at 10 to 20 cents on the dollar). 4. rebuild to a high standard. 5. get a professional ‘collector car appraisal’ on it. 6. Get is properly in sured.

  7. Chubb Insurance Agreed Value $15K
    Total car guys!
    Stock 67 Beetle
    No hassle No problems

    Hope this helps

    1. X2 on Chub Collector Car insurance. Awesome company to work with if anything ever happens. Like others, they require a fully insured daily driver, and a garage, but they don’t have mileage limits and they are ok with you using your own bodyshop/mechanic [some companies have restrictions]. THey are competitively priced and Chubb is an underwriter as opposed to a broker like Grundy or Hagerty So Chubb calls the shots.

  8. Stephen M. Jaeger November 9, 2015 at 1:34 pm

    I just got LIABILITY for my newly operational vehicle but not comprehensive. I have put more than the cost of the car into it already but it is still not clear how much it is worth yet. Perhaps when I have restored to to show quality I will consider insurance. Meanwhile, I’m taking the sole risk. For risk reduction I moved the fuel filter out of the engine compartment and set it up on the other side of the front engine tin as per Eric’s suggestion. Might leak gas all over the road but I will take a walk to the gas station over a fire. I will also get a fire extinguisher. I had one in my original 67 in high school. Cheap insurance for any such car.

  9. First of all, what caused this fire? Fuel leak from around the filter? Broken hose or clamp? Scary stuff :(

    In regards to insurance I use Hagerty. I pay $224/year for $25,000 coverage and can drive 2500 miles/year. I really like the “Hagerty price guide” for viewing the value of VW’s as well as other collector cars. Here is what Hagerty values the ’67 sedan as of August 1, 2015: Condition 1: $25,900. Condition 2: $18,300. Condition 3:$9,500. Condition 4: $5,000. For condition 1 and 2 cars they want detailed pictures. I found them very easy to work with and would highly recommend them.

  10. Rachel Salisbury November 9, 2015 at 1:44 pm

    We have 2 1067 Beetles. One is a convertible valued at $25k. Our sedan is valued at 10k. It needs paint and headliner. Hope this helps.

  11. The reader said, “backfire” but I’m thinking leaky carb, fuel pump inlet tube, etc. The usual suspects that we all know about.

  12. I use Condon & Skelly. They require pics of entire car. Must be garaged, and driven no more than 2500 miles/yr; to car shows, parades, etc. valued @
    $15K. I also moved my fuel filter as suggested by Eric.
    I hope I never have to use my insurance. Fire extinguishers, a must!

    1. Yep. Fuel filter in engine = bad idea.

  13. Sad to see this happen but it does.Insurance companies are all different but have the same standards when it comes to value for claims,most of us under value are cars so we can afford the insurance,what comes to my mind is what caused the fire so maybe it won,t happen to my 67 convert. ??. My bug is insured for $7000.00 ,that’s what I pd and so far what I have spent on it. Thanks BOb

  14. Irving DeMatties November 9, 2015 at 3:58 pm

    Our ’67 is insured fro $15,500. I think the fuel filter on ours is also in the engine compartment, but car is in winter storage – so, can’t check now. Where was the fuel filter on the originals from the factory. Seems I saw an article a while back saying the filter should be under the car near the frame.

    1. Yes, it should not be in the engine. Here’s the article we wrote about it.

    2. Originally the only fuel filter is located in the fuel pump. Best place to put the fuel filter is above the tranny where the fuel line exits the tunnel or below the tank. FWIW, when VW went to Fuel Injection in ’75, they located the fuel filter under the tank.

      1. I forgot, there is also a screen in the tank that helps weed out the big stuff.

  15. I have Hagerty. I’ve had VWs in the past, but this one is first to be deemed a classic. I got an education on classic car insurance, as I thought I’d have to put on my regular policy. With Hagerty, you choose the amount of coverage, then send them pics of inside and outside of car for their agreement that your chosen coverage amount is accurate. It must be garaged and not a daily driver. For $50 more annually, you can have it towed on a flatbed for breakdowns, not just accidents.

    Haven’t had to use it, thankfully.

    1. I’ve had to use our Grundy insurance once.. Our ’67 was hit in SF. About $4,500 in body work and I paid none of it. It “pays” to have an agreed value policy.

  16. We also use Hagerty ‘s “agreed value” policy on all four of our vehicles … 1 Chevy, 2 Fords and of course, Wally2. Think, after reading the comments, I’ll check our Chubb at our next renewal.. Thank you all and best wishes for a speedy recovery to the subject treasure.

  17. I noticed mine was in the suggested location when I purchased the car. It always makes me nervous when I see the filter in the engine compartment.

  18. The original poster said: ” I need help to evaluate value and cost of repairs …..” Frankly, people chiming in about their own insurance policies, etc, does not help this fellow with his dilemma only helps others who are looking at their own insurance coverage, present and future. I think my earlier post: ” 1. negotiate the best ‘write-off value’ you can get. 2. take the cash settlement. 3. then buy the car back from the insurance company (maybe at 10 to 20 cents on the dollar). 4. rebuild to a high standard. 5. get a professional ‘collector car appraisal’ on it. 6. Get is properly in sured.” …..has offered the only ‘reasonable’ way to deal with the current situation. The chatter has been interesting …..but not really relevant to the original question …… Just saying …….

  19. I have Farmers Insurance. A tree fell on my ’67 Bug destroying the sunroof, denting the roof, engine cover and rear fender. It was drivable afterwards.
    My insurance immediately offered 5500. And after a couple months I settled for the Haggerty value at the time near 10K. Had the chance to purchase it from them with totaled title for 1500. but passed because nobody in my area would work on it. I loved that car and it was painful to let it go.

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