Insurance for Collectors of Classic Cars

Now that summer is here, classic car owners are once again taking to the streets and showing off their classic beauties. People are often amazed to see these fully restored, beloved vehicles out and about for the summer driving season. These cars can, however, experience the same type of concerns as present day automobiles. Whether they breakdown, or are involved in an accident, insurance is one way to get the necessary repairs done without taking a heavy, personal financial loss.

Agents may be contacting their clients to discuss and review their policies in order to make sure they have the most appropriate classic collectors insurance coverage for their fabulous automobiles. Insurance companies that specialize in insuring classic autos have the ability to offer superior coverage at lower premiums and can provide other benefits as well, such as options that often include choice of repair shops, roadside assistance (with guaranteed flatbed towing), and coverage for spare parts and tools.

Select the type of policy preferred

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, consider that a sentimental value may be far greater than the actual dollar value. It’s 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 works best because they understand the unique needs associated with older, collectible vehicles. This will save you money, because specialty insurers recognize that the risk for loss is often far less in a classic car than in a regular-use vehicle, which means the premiums are often much lower.

Since your homeowner’s policy will not cover the full value of your car it’s important to maintain classic collectors insurance coverage that covers the vehicle when at a repair shop or in storage.