Classic Car Insurance: Insuring Your Classic Car
If you own a rare, collectible, or classic car of considerable value, you need a policy that will provide adequate coverage in case of an accident or theft.
Before you go out and buy a classic vehicle, make sure you and your vehicle qualify for classic car insurance coverage. A lot of classic car insurance companies will not cover you if you fall under these categories.
* DUI or 2 moving violations/accidents within the past 3 years.
* Your vehicle itself does not meet classic car status
* You have less than 10 years of driving experience
* You cannot properly store your vehicle in a locked garage.
* Every licensed driver in your household does not have their own vehicle.
* You plan on using your vehicle for business use or to go to work or school.
If you feel you and your classic car meet these requirements, read on.
What makes up a classic car insurance policy
Stated Value Policy: This is the MAXIMUM amount the insurance company will pay out in case of damages. Do not expect to see the full amount, it’s just a starting point and pay outs go down from stated value.
Actual Cash Value Policy:
This is a tricky little clause that gives the insurance company the ability to add depreciation to your car and pay LESS than the “stated value”. Since anything that is truly “collectible” tends to increase in value, an actual cash value policy undermines that appreciation and gives the insurance company the edge.
Agreed Value Policy:
This is the value that both you and your insurance company agree that the vehicle is worth with no depreciation. You have this number in writing and it’s the number on which payout is determined. If you have a great insurance company, appreciation will also be factored in each year.
Classic Car Appreciation:
Since collectible vehicles often appreciate in value over the years, it’s a smart idea to define if you insurance policy is allowing for appreciation. Some companies like American Collectors allow 2% appreciated value per year and Grundy at 4% annually.
Liability Limits: Some major companies go right on up to $1,000,000. Make sure you know your liability and how much you need/want to insure your vehicle correctly.
Storage: Where you store your vehicle has a tremendous amount of impact on your coverage, or ability to get coverage. As you can probably guess insurance companies want your vehicle to be protected at all times, especially when you’re not in the presence of the vehicle. Therefore, standard clauses state you must have your collector car in an enclosed and locked garage.
Spare Parts Coverage
Towing and Labor
Trip Interruption
Age Limits:
Believe it or not the age of your vehicle can have a big impact on the price of your policy. And with some carriers, the lack of eligibility.
Vehicle Usage:
This defines how much you can use the vehicle. Parade or event use only? What about pleasure use up to 5,000 miles a year? Can I drive unlimited miles?
Note:
Keep in mind there are many parts to an insurance policy and you alone are going to have the best interest in your vehicles ongoing market value. A good practice is to re-evaluate the current market value of your vehicle before each policy renewal and get all policy changes in writing.
Valuing My Collector Car / Vehicle Appraisal:
NADA Classic Car Values
International Vehicle Appraisers Network
Classic Appraisal
What Kind of Vehicles Qualify for Classic Car Insurance
Not all companies use the same car qualifications. For complete information you will need to speak with an authorized insurance agent that represents the company you wish to insure your vehicle with.
* Antique and Classic Cars
* Exotic/Special Interest
* Fire Trucks
* Low Riders
* Military Vehicles
* Modern Classics
* Motorcycles and Scooters
* Muscle Cars
* High Quality Replicas
* Street rods
* Tractors
* Trailers
* Trucks
* Vehicles Under Active Restoration
Classic Car Insurance Companies:
This is not a complete list or classic/collectible car insurance companies, just a few of the larger and more respected insurers.
Hagerty Insurance Company
Grundy Insurance Company
American Collectors Insurance Company
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Hagerty’s man…they’re a big one.