You may have finally achieved your dream car. Maybe it’s that muscle car you always wanted in high school, or you have to go back to the car you had 30 years ago. Perhaps you have had your classic car for many years. In any case, if you are insuring your current daily transportation insurance company, here are some reasons to look into a collector’s auto insurance company.
First of all, many standard car insurance companies cannot insure your classic car for what it is really worth. Many classic car owners who have their cars covered by their standard insurance company may be covered by a cash value policy.
This is probably the worst policy you can have, as this implies that the coverage that you will be paid for is the actual value the insurance company determines your vehicle has. They can use the blue book values if they are on file, or use a percentage of what you paid for the vehicle.
If you paid $ 4,000 for that car ten years ago and it is now fully restored, the insurance company may see the $ 4,000 depreciated over ten years. Vehicles depreciate under actual cash value policies, even classic cars and other collectibles. If you find you are under this type of policy, read on. You have to look into the following two types of policies.
Agreed value and declared value policies are the best choice for classic cars. Both allow the value of the car to be established between the owner and the insurance company, not just a standard value taken from a data sheet.
However, agreed value policies are the best option. Established value policies still allow the vehicle to depreciate each year, and there are usually higher deductibles. Agreed value policies are not depreciated, so your classic car is always covered up to the maximum amount. Also, many of the agreed value policies do not have deductibles, making it the best option.
Now that I’ve probably freaked out some classic car owners, there is another good news for having your car insured under a collector’s auto insurance company. You can save up to 50% off your premiums. Because these insurance companies only deal with classic cars and other collectors, they can keep your premiums lower.
Most car collectors keep their vehicles in tip top shape, and they only drive a limited amount. This means that these cars are not so much of a liability to the insurance company. The only stipulations you might find are limited mileage add-on (usually 5000 miles per year, or around that), a 25 or 30 minimum driver age limit, and the vehicle cannot be raced. Many policies even allow you to have more than one classic car under the same policy, for the same price!
Again, because collector car insurance companies only deal with collector cars, they know what to look for when determining the true value of your collector car. Using a specialty insurance company is the best way to fully insure your classic vehicle.
I’m not going to cover up any certain insurance company, but using a search engine will deliver more than you could ever compare. Just compare two or three – most collector car insurance quotes will be similar.
You usually won’t find large swings in prices, as can be found in standard commuter vehicle quotes. Before you call, make sure you have a general ballpark figure for the value of your car. Insurance companies may want to see receipts for restoration, parts, and labor that have been used to establish the value. Any of the rare options, original parts, etc. They can also be mentioned.
Once you have the whole insurance policy, you should update it regularly. Classic car values in the last ten years or so have risen substantially. Restoration also adds value to a vehicle. Make sure that you are insured for the full value of your vehicle in case the worst possible scenario happens.
It pays in more ways than one that you should look to a collector’s auto insurance company for a quote. Not only can you save a lot on premiums, but it is possible to find out your current insurance does not fully cover your classic vehicle down to its “true value.” That’s a huge risk, especially if you have a truly valuable classic.