Grundy Insurance

Insurance 101

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Whether you learned about our online classroom through an advertisement in a magazine, a link on our Web site, your insurance agent or a friend, the Grundy family is glad you found this special part of our new website. We want you to understand the importance of properly insuring your motorized vehicles, and we know that insurance lingo isn't always easy to understand. 

Through our Insurance 101 Series, we will focus on a different insurance topic each month.  You don't need to learn your lessons the hard way -- Learn them from us!

Be sure to visit back each month to see what topic is next! Also, if you have suggestions for a topic you would like us to explain, please e-mail us: Click to add the image.

This month's lesson: “Filling the Gap” – New Insurance Program Removes the Dangerous Holes in your Auto Insurance Coverage

Grundy Insurance provides total protection with the groundbreaking, all-in-one “MVP” Motor Vehicle Program

Important factors are often neglected when establishing auto insurance policy limits, causing “coverage gaps” – or holes in your insurance coverage – that leave you lacking the protection you need. Reasons for these gaps include: working with multiple insurance agents, setting unequal liability limits and dealing with a constantly fluctuating market. Grundy Insurance’s new Motor Vehicle Program (MVP) addresses each of these areas and offers a solution that “fills the gaps.”

Work with One Agent

As a car collector you may believe that in order to get proper coverage for all of your cars, you need to work with several insurance companies— especially if your vehicles fall into a variety of usage categories, i.e. “daily driver” auto, antique and classic, service vehicle, motorcycle or motor home; or, perhaps you believe that you need agents in multiple locations if your vehicles are stored in different states. Both of these presumptions are wrong, and insurance can be much simpler if you work with one agent. With Grundy, you make one phone call to one agent when covering all of your motor vehicles through the MVP.

Set Equal Liability Limits Across all your Policies

Working with one agent isn’t only simple, but it also prevents possible confusion that can occur when juggling policies between multiple brokers. That confusion may stem from purchasing policies with inconsistent Bodily Injury liability limits.

For example: You buy your insurance coverage for your daily auto from Company A and choose $500,000 for bodily injury. Company B insures your motorcycle and without referencing your daily driver policy, they suggest you set your liability limit at $100,000. You insure your two classic cars with Company C that quoted you at a car show with Bodily Injury limits at $300,000. (You bought the policy on the spot, because the price was great.)

Now, you have three different policies with three different limits.

If you get into an accident with one of your classics and cause injury to another party that sues you for $500,000, you are surely covered for $300,000 (your limit with Company C). But, now, you’re left with a $200,000 gap. Lawyers will work with you and your insurance companies; and, you will most likely max out one policy and maybe go to another and then to another. But, why?

MVP offers consistency, and consistency avoids confusion and adds convenience. With Grundy, you have the same limits across all your auto policies. This includes equal UM/UIM limits, as well.

While mismatched Bodily Injury liability limits can cause confusion, it is even more important to review your Uninsured/Underinsured Motorist limits to avoid coverage gaps. If you carry a limit of $500,000 for bodily injury on your primary insurance policy and you injure someone, you are covered for $500,000. However, if another driver hits you and injures you in the amount of $500,000— and they are only covered up to $50,000— suddenly you are left with a gap of $450,000. At this point, your Uninsured/Underinsured motorist liability kicks in. Having set an Uninsured/ Underinsured Motorist limit equal to your Bodily Injury limit ($500,000) through MVP fills this gap, and you are fully covered.

Buy Agreed Value Coverage

The true values of all your motor vehicles are also fully covered with Grundy’s new program. Standard marketplace direct writers that insure your daily drivers, motor homes, motorcycles and other “non-collector” vehicles do not offer Agreed Value coverage— and without AV, another coverage gap emerges.

If you are in an accident and protected by an Actual Cash Value policy that standard insurers issue, the insurance company will account for depreciation. (This involves starting with the Cost New and deducting a certain percentage for each year the vehicle is old, plus deductions for observed or expected “wear and tear.”) When comparing market value to replacement value, you may find another gap in your coverage – and, sometimes an insurance company will end up paying less than an outstanding loan amount!

This gap is filled when you are covered with Agreed Value. AV policies set the limit that a policyholder will receive and an insurance company will pay in the event of total loss or theft of a vehicle. Since 1947, Grundy has insured antique autos with Agreed Value policies; and with MVP, Grundy extends this coverage to protect all your vehicles, including daily drivers.
The 150% Valuation Clause

While Agreed Value protects your vehicles from depreciation, the MVP goes beyond what other insurers offer by protecting appreciating vehicles. Have you ever wondered what happens if the value of your car appreciates before you have an opportunity to increase coverage?

Due to rapid appreciation, the cost to replace or repair your car may be greater than the amount for which you insured the vehicle; but, Grundy fills that gap, too. Never before offered through another insurance program, MVP provides a unique “150% replacement value clause” that states if a loss occurs and the vehicle’s current market value exceeds the coverage limits (the Agreed Value), Grundy’s customer can be reimbursed up to 150% of the insured value.

Grundy’s MVP fills all coverage gaps by consolidating your exposures and offering broader
coverage with equal policy limits, Agreed Value and the added 150% valuation clause. In addition to these unique policy features, MVP also allows for more simplicity and less confusion by providing you with one point of contact for all your auto insurance.

Prior Lessons:

Lesson 1 »

The Difference between Agreed Value, Actual Cash Value and Stated Amount Insurance  -- Do You Have the Right Insurance? 

Lesson 2 »

What is Uninsured and Underinsured Motorist Liability & Uninsured Property Damage Coverage?

Lesson 3 »

"Total Loss" Prevention: Grundy Understands Your Car's Worth

Lesson 4 »

Are You REALLY Covered? -- COMP vs. COLLISION

Lesson 5 »

Diminution of Value: Are You Covered when Your Collector Car's Originality is destroyed in an Accident?

Lesson 6 »

The Effects of Market Appreciation and Inflation on Collector Car Insurance: Grundy Protects Customers with "Peace of Mind" Coverage

Personal Lines

MVP Program

  • • Agreed Value
  • • Unlimited Mileage

Special Client

  • Large Collections
    Insurance Beyond
    your Vehicles


  • • Agreed Value
  • • No Surveys
    Required for
    Classic Boats

Commercial Lines

Shops & Car

Public &


  • Dealerships,
    Museums and More

Becky, Thank you and the Grundy Organization for the goodies that arrived today... We really appreciate the way that the Grundy people have taken care of us in the past, as well as each year since we had that disastrous fire that destroyed one car and smoke damaged many others, including the building. Thanks again...

—Richard Donahey