Collectors Cars Insurance for the Conscientious Owner

Collectors car insurance companies have the ability to offer superior coverage at lower premiums and can provide other benefits as well, many specifically tailored to collector cars. Policy options often include:

Types of policies offered

Guaranteed (or agreed) value coverage is typical for most companies specializing in classic car insurance, while a traditional auto policy writes an actual cash value (ACV) or stated value policy. With an agreed value policy, the owner and insurance provider agree upon the car’s value at the time the policy is issued, and that value will not be depreciated in the case of a total loss. An ACV policy will potentially depreciate the car’s value, reducing the amount of the claim. This difference is particularly important because most classic cars appreciate in value over time, while most other cars depreciate.

Coverage Considerations

Classic car owners being passionate about their vehicles often have an emotional connection to their automobiles. Therefore there is often a sentimental value far greater than the actual dollar value. The agent’s job is to provide the client with the best protection for something they truly cherish. It is important to properly value the car when seeking an insurance policy for collector’s cars. There are several classic car price guides available to research current market values, including Hagerty Price Guide, NADA, and Old Cars Price Guide.

Working with a company that deals exclusively with classic cars makes sense because they understand the unique needs associated with older, collectible vehicles. This will usually save the client money, because specialty insurers recognize that the risk for loss is far less in a classic car than in a regular-use vehicle, which means the premiums are often much lower.

Also, a company that handles claims in-house makes for more efficient claims handling and ensures that the person handling the claim has experience with the unique needs a collector car may require during any repair process. Because their cars are seldom driven, classic car owners are more likely to experience a break down than a claim. Flatbed towing is one of the safest ways to transport a car because all wheels of the towed vehicle are off of the ground.

Note that many people mistakenly assume that the homeowner’s policy will cover the full value of their car when it is in their garage. It is important to maintain collectors cars insurance coverage even if the vehicle is at a shop or in storage and not being driven. In the event of fire or theft, the client will have to absorb the entire loss if the vehicle isn’t covered.

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