A spokesperson for Mercedes-Benz said the company would not comment on insurance with regard to the record-setting coup\u00e9.<\/p>\n
But according to Abe Barnett, vice president of Signature Services, Hagerty\u2019s highest-end insurance segment, the most obvious bet for the new owner would be to protect it under an inland marine insurance policy, which covers high-value items typically excluded in proper coverage.<\/p>\n
Numerous factors go into finalizing the rates and structure of such a policy\u2014things like location, storage, and vehicle type\u2014but in general, insuring a $100 million vehicle costs well over $100,000 to insure annually.<\/p>\n
\u201cThat would treat it essentially like a piece of jewellery or art,\u201d says Barnett. \u201cIt provides a much broader form of coverage, as opposed to a standard auto policy, which would be comprehensive and collision coverage. When they take their vehicle around, whether they want to take it to a concourse or take it on a road rally or tour, that policy that will cover it appropriately.\u201d<\/p>\n
Galleries and art fairs often use this form of coverage to protect paintings, sculptures, prints, collections, and cultural artefacts, and elite garages do it with cars. This includes protection from damage or loss due to theft, accident, mishandling, or in the event of an undetermined cause for property to have gone missing.<\/p>\n
It would also help meet the costs to repair or replace property damaged by fire, wind, hail, or water.<\/p>\n
Inland Marine policies do not, however, cover damage from war, nuclear or otherwise. They do not cover mechanical failure or issues that happen due to regular use, such as tire blowouts, hose repairs, or brake replacements.<\/p>\n
If you (or, more likely, your garage manager) should forget to change the oil in your multimillion-dollar Mercedes, that\u2019s on you. Yearly upkeep on such vehicles can cost tens of thousands of dollars in storage, fuel, parts, and service.<\/p>\n
\u201cIt\u2019s customary for insurance generally to not try to insure what they consider normal wear and tear,\u201d Butcher says.<\/p>\n
Most important when underwriting such a policy is to agree upon the value for which the vehicle will be insured. That number can be far above what was paid for it; it may also rise as a car is restored. Kidston declined to discuss specifics about the value for which his client\u2019s vehicle would be insured.<\/p>\n The preservation or restoration of a single million-dollar vehicle can enhance its value significantly, although this wasn\u2019t the case with the Uhlenhaut Coup\u00e9.<\/p>\n \u201cGiven that the car has always been a jewel of the Mercedes-Benz Museum, it had always been meticulously maintained in outstanding condition,\u201d Haynes says. \u201cThere was really no work to be done on the car prior to it being offered for sale, as far as we are aware.\u201d<\/p>\n For vehicles that do need work, the insurance provider will often check in with high-net-worth owners on a quarterly basis to determine the progress of the project and adjust the value of the insurance policy accordingly.<\/p>\n Keeping It Safe<\/strong><\/p>\n How and where the car will be stored will probably affect the price of the insurance policy more than anything else. \u201cMany wealthy people live in beautiful areas that tend to be catastrophically exposed,\u201d Butcher says, citing private islands, forested mountains, and sheer cliffs.<\/p>\n Keeping a vehicular asset away from wildfire areas and hurricane zones is vital. So is storing it in a temperature-controlled environment with effective security cameras, burglar alarms, and sprinkler systems that can spray fire-retardant foam.<\/p>\n Some collectors go so far as to preemptively clear brush in a radius of 200 feet around where they store the car and to dig retaining ponds to dampen flames should a fire creep close\u2014anything to protect the investment.<\/p>\n An additional consideration: \u201cInsurers will want to know the age of people likely to drive it,\u201d Kidston says. \u201cAnd if the car is being transported, they will often ask that there are two drivers on the truck and that it\u2019s not left unguarded for any period of time.\u201d<\/p>\n Transport typically runs from $2,000 to $10,000 or more, depending on whether the vehicle is being transported via a flatbed truck, a covered carrier, a boat, or a cargo plane.<\/p>\n A deductible typically does not apply in cases of ultra-rare cars. If an owner insists on one, it could be 1% or 5% or 10% of the total insured value of the car, Butcher says. Having a deductible is one way to avoid having to submit an insurance claim for smaller incidents such as dings or cracked wheels.<\/p>\n \u201cIf someone feels comfortable absorbing the cost, they might want to repair it on their own,\u201d Barnett says. \u201cThey might say, \u2018Well, it\u2019s $50,000 or $100,000 dollars. I\u2019m comfortable paying that out of pocket.\u2019\u201d<\/p>\n As with your everyday car insurance policy, not having to submit a claim helps keep the insurance premium as low as possible. \u201cNot a crazy amount, but it lowers it enough,\u201d says Barnett. (A single claim on a policy would probably not increase rates.)<\/p>\n Ethically, anyone selling a vehicle should disclose even small incidents that happened to it\u2014whether or not the incident was reported to insurance.<\/p>\n Rising From the Ashes<\/strong><\/p>\n Even if the unthinkable happens and the car is damaged in a catastrophic event like a plane crash or flood, not all will necessarily be lost\u2014assuming it can be repaired.<\/p>\n \u201cOf course, nobody likes that in a car\u2019s history, but at least the car is not a complete write-off,\u201d Kidston says. With extreme damage, the owner would converse with the insurance company about reducing the car\u2019s value, pending restoration.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/06\/MercedesBenz-e1654235368240.png\")
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