Classic car owners love their vehicles whether they are sitting in storage or they are behind the wheel taking it for a spin. When they are on the road they have to be careful of drivers less conscientious than themselves in order to avoid accidents. Therefore they need to make sure they have appropriate collectors car insurance coverage for their cherished automobiles.
Classic car insurance companies have the ability to offer superior coverage at lower premiums and can provide other worthwhile benefits as well, many specifically tailored to collector cars. Policy options often include repair shop options, roadside assistance (with guaranteed flatbed towing), and coverage for spare parts and tools.
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 actual cash value (ACV) or a 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 options to consider
Classic car owners are often quite passionate about their vehicles. Their agent’s job should be to provide the client with the best protection for something that they truly cherish. It’s important to properly value the car when seeking an insurance policy for collector’s cars.
Most specialty auto 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 as well.
An insurer 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 associated with collector cars. Since these cars are seldom driven, classic car owners are more likely to experience a minor break down rather than a major claim.
It’s important to maintain collectors cars insurance coverage even at times when the vehicle is at a shop or in storage and not being driven. In the event of fire or theft, the client would shoulder the responsibility for the entire loss if the vehicle weren’t properly covered.