The Car Collector

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The Desire for an Antique Vehicle

Albert Reiche had a passion for old cars. Since the trust fund set up by his maternal grandparents provided him income of $3,000,000 a year, Albert never took a job.

He began to collect cars when he turned twenty-one in 1960. He started with a 1924 Model A Ford. As the years passed, he purchased and restored for his collection an Auburn, two Duesenberg J’s, a 1928 Cadillac touring car, a 1918 Dailmer, a Willy’s J, a 1934 Packard limousine, a 1924 Bentley, and many other classic automobiles. He kept his cars in a climate-controlled warehouse.Albert Reiche had a passion for old cars. Since the trust fund set up by his maternal grandparents provided him income of $3,000,000 a year, Albert never took a job.

He began to collect cars when he turned twenty-one in 1960. He started with a 1924 Model A Ford. As the years passed, he purchased and restored for his collection an Auburn, two Duesenberg J’s, a 1928 Cadillac touring car, a 1918 Dailmer, a Willy’s J, a 1934 Packard limousine, a 1924 Bentley, and many other classic automobiles. He kept his cars in a climate-controlled warehouse.

By the time Albert turned fifty, he was the proud owner of seventy-five classic automobiles. Albert had restored all of the automobiles to a pristine, new car showroom, condition. To Albert they were priceless. Albert would never consider selling. Estimates by car buffs had valued his collection at $90,000,000 to $125,000,000. He insured the collection with a gaggle of British insurance companies with a limit of $80,000,000.

Everyday Albert would spend time with his cars. He dusted, waxed and caressed each car. He manufactured, in his own machine shop, the parts he could not buy for his cars to keep them in new-car condition.

Two months later Albert faced incurable temptation and frustration. One of his sources informed him that the third Dailmer motor car ever manufactured was for sale for $6,000,000. It would be the cap stone of his collection. Old man Harrah would roll over in his grave to know that Albert had an automobile that put in shadow all of Harrah’s collection.

Albert did not have $6,000,000 in ready cash. His trust fund was set up so that he could not tap into the capital, but only accept the income derived from that capital. He only had a million dollars in ready cash and needed to raise another five. The seller would never reduce his demand since he knew the Dailmer was unique. Albert could not bring himself to sell any of his collection. He was desperate. Then he remembered that his trustee had required him to purchase insurance to protect his collection.

Albert, had to have the Dailmer.

Albert had a brilliant plan. He had his two Duesenbergs, a Cord, an Auburn and three Packards moved to his farm in Connecticut. He then broke the lock on his storage facility with a tire iron from a 1957 Chevy and reported that he had been the victim of a burglary. The police officers, totally blinded by the beauty of the collection, took his report and expressed honest sympathy for his loss. Shortly after that, his insurance adjuster visited Albert who confirmed the forcible entry into the storage facility; that the value of the vehicles exceeded the amounts stated on the policy by at least $3,000,000, and recommended to the insurers that they immediately accept the proof of loss for $6,540,000 (the stated value of the vehicles). The insurer agreed, happily noting they could have lost much more if the burglars had taken more vehicles.

Albert bought the Dailmer, which is now the pride of his collection. Since Albert was never a criminal, as the years passed and the income from his trust funds allowed, he would move one vehicle at a time from the Connecticut farm and deposit them on the streets in various communities throughout the Northeast. The police would eventually be called, trace the vehicle back to Albert, who would gladly retake possession. Since Albert had transferred title to the vehicles to his insurers upon the payment of the claim, Albert paid the insurer back the exact sum the insurer had paid him for the vehicle. Eventually, Albert recovered all of the cars he reported stolen. The insurer received back all the monies they paid in settlement. Albert’s collection was complete. No one thought they were hurt by the crime.

Albert lived happily ever after.
ZALMA OPINION

Insurance is not a bucket of money for whatever the insured desires. It is a promise to indemnify another against the risk of loss of property from a contingent or unknown event, not a means to fund the purchase of an antique automobile.

(c) 2022 Barry Zalma & ClaimSchool, Inc.

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 54 years in the insurance business. He is available at http://www.zalma.com

and [email protected].

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