Classic Car Insurance – Why Your “Dream Car” Could Be At Risk

You may have finally got your perfect car. Maybe it’s that muscle car you always wanted back in high school, otherwise you got that car back you had 30 years ago. Maybe you’ve had your classic car for many years now. Regardless, if you are insuring it with your current daily transportation insurance company, here are some good reasons to look into a collector motor insurance company.

To start with, many standard motor insurance companies may not insure your classic car for what it’s truly worth. Many classic car owners who have their auto covered by their standard insurance carrier may be covered under a genuine Cash Value policy. This is probably the worst policy you can have, since this coverage entails that you’ll be paid the specific value the insurance coverage company determines your vehicle has. They might use blue book values when they are listed, or make use of a percentage of that which you paid for the car. If you paid $4,000 to the car 10 years ago and today it is fully restored, the insurance company may see the $4,000 depreciated over 10 years. Vehicles depreciate underneath the Actual Cash Value policies, even classic cars along with other collectibles. If you discover you are under this kind of policy, read on. You need to look at the next 2 kinds of policies.

Stated Value and Agreed Value policies are the most useful fit for classic cars. They both allow the value of the automobile to be set between the owner and also the insurance company, not only a standard value obtained from a data sheet. However, Agreed Value policies are the most useful choice. Stated Value policies still enable the vehicle to depreciate yearly, where there are usually higher deductibles. Agreed Value policies usually do not depreciate, so that your classic car is always covered up to the max amount. Plus, many Agreed Value policies do not have deductibles, rendering it the best choice.

Now that I have probably scared some classic car owners, there’s other good news for getting your car insured under a collector car insurance company. You may save up to 50% off your premiums. Because they insurance companies only cope with classic and other collector cars, they are able to keep their premiums lower. Most car collectors keep their vehicles in good shape, and they’re only driven a restricted amount. This means these cars are not as much of a liability for the insurance company. The sole stipulations you might run into are limited mileage allowance (usually 5000 miles per year or around that), the absolute minimum age driver limit of 25 or 30, and you also cannot race the automobile. Many policies even enable you to have more than one classic car underneath the same policy, for the similar price!

If you have a rare or specially modified car, or have a model built by way of a famous builder, your classic car could have more value than any book or standard insurance carrier will value your automobile at. Again, because collector car insurance companies only cope with collector cars, they do know what to look for in determining the real value of your collector car. Utilizing a specialty insurance company is the best method to fully insure your classic vehicle.

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