If you are fortunate enough to own a classic car – or any collectible automobile – then you want to ensure that your luck does not run out because of having inadequate insurance coverage. Call it covering your butt – or covering your “asset” – but by all means, call one of the major providers such as American Collectors, Haggerty, or Parish Heacock insurance companies and let them put you in the driver’s seat in terms of professional protection of your cherished automotive investment.
How to Kick the Tires on Classic Car Insurance
The whole idea of insurance is that it needs to do what you expect of it in an emergency, when the rubber really hits the road. And classic car insurance is as different from conventional auto insurance as, well, a classic car is from your run of the mill generic vehicle.
When you buy a classic car insurance policy, you are essentially purchasing protection for those times when – God forbid and knock on wood it doesn’t happen – disaster strikes in the form of a fire, a collision, or an act of theft or vandalism. Just as we now have modern airbags to save us in the event of a crash, we also have collector’s car insurance, to protect us with adequate moneybags when calamity throws a wrench in the works.
The time you invest in choosing the right classic car insurance coverage is well worth the value and peace of mind that a quality collector’s insurance policy delivers for owners of classic motor cars.
The Nuts and Bolts of Classic Car Insurance Coverage
Collector car insurance is not the same as the insurance you buy for normal coverage of your daily transportation. Collector car insurance, or classic car insurance, is made especially for the needs of the car collector. And while ordinary insurance does offer some protection, no matter what you drive, it can leave you high and dry in the event of a loss that it not effectively covered by the terms of the insurance contract.
For example, you may have a garage-kept Cadillac Sedan DeVille with swooping fins your grandparents bought for $7,000 brand new back in the 1960s. But dealers have offered you three times that much, and you saw another one sell at an auto show for $35,000. If you don’t have special collector car insurance or classic car insurance, and the car is totaled, you will be lucky to get $7,000 for it. With depreciation calculated in, the insurance statisticians may decide that it is worth only half that much, or less, and you could wind up with two or three grand in exchange for your dream machine.
Stipulations or requirements normally encountered while shopping for collector car insurance or classic car insurance:
- A decent driving record.
- At least 10 years driving experience
- No teen drivers on the policy or drivers with poor driving records
- Secure and out of the weather garage
- Proof that you have another car for daily transportation
- Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
- Limited mileage. You probably don’t want to drive your creampuff car all the time, and your insurance company doesn’t want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you’re probably okay.
Coverage with collector car insurance or classic car insurance: Three kinds of value are important to understand when buying your policy. 1) Actual cash value: This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.
2) Stated value:
The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to $1,000 usually apply.
3) Agreed value:
In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your $100,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple – which is exactly why collectors use special classic car insurance coverage.