Tips to Insuring A Classic Car
Whether you want to insure the vintage 1924 Studebaker you inherited or a 1972 Chevrolet Chevelle you and your Dad have spent years restoring, shopping for classic car insurance can prove confusing.
Antique or collector car insurance is similar to regular car insurance. Although there are unique deductibles and coverage’s, they usually work mostly the same way. However, you do need to familiarize yourself with the differences before you can find the right classic car coverage for your vehicle.
If you are not sure what you need or where to start, here are some tips to consider. Start by asking yourself a few questions to narrow your search.
Do I Drive This Car?
If you own a vintage collector car that doesn’t run, you are still able to insure it. Collectors and antique automobiles can hold significant value even in the restoration stage and can be covered through out the process.
If you do intend to drive it, you will need to find an auto-insurance provider and policy intended for classic cars. Classic cars may be more expensive to repair due to car parts possibly not being readily available or you could have difficulty finding a mechanic qualified to do the job. The proper insurance company can assist with these issues.
How you intend to drive the car will determine the kind of policy. For example, your premiums will differ if you drive the car frequently versus driving only a few miles in a parade or to transport it to a local car show.
How Much Is It Worth?
How can you decide the worth of your vintage vehicle? You have invested a great deal of emotion and sweat in your vehicle, but what about its monetary value?
Collector cars are unique in that they are the only cars that increase in value over time. Most cars depreciate in value the minute you drive them off the lot. However, you may not know your classic or antique car’s value because you can’t easily search it in Kelly, Bluebook or other internet resources. The proper insurance company can assist with determining value. You may need to adjust your policy as time goes on to account for any increases in your car’s value.
To adequately cover your collectible for total loss, look for an Agreed Value insurance policy. Auto insurance policies fall into three main categories: Actual Cash Value, Stated Value, and Agreed Value. Actual Cash Value applies everyday cars-it will pay the minimum of the car’s depreciated value or last stated value according to when it was sold. Stated Value policies are slightly better because the insurer agrees to pay for coverage up to a stated amount.
Agreed Value policies work the best for antique automobiles because the value adjusts to cover the appreciated value of your car.
These policies work in a similar way to insurance policies for antiques. The difference is that these policies take on elements of automotive insurance, providing owners with the option of adding coverage for collision repair, maintenance, or liability.
Should You Get Professional Help?
Even if you know what to look for, you may still have difficulty finding an insurance policy on your own. Trust an expert to do it for you instead. Call one of our professional brokers to find the right policy for you.