There are many good reasons why you should own classic and collector car insurance, rather than a ‘standard and regular car policy.’
According to a Los Angeles Times survey, it was revealed that around half of the people who owned a collector car just owned a traditional/regular/standard vehicle policy without ever paying close attention to their insurance.
These statistics are alarming because it tells that collector owners are throwing money away while also risking the value of their car by not having a specialized auto insurance policy.
Here are some reasons why you need collector/classic car insurance
When someone shops for car insurance, you and your agent decide on an ‘agreed value’ or ‘actual cash value’ (or ‘stated value’) that states the value of the car; just in case the car is deemed a ‘total loss’ if it is ever wrecked or damaged.
The traditional concept for regular, non-classic vehicles is that the value depreciates over time due to normal wear and usage, and other variables. Insurers base the price of a standard insurance policy to that with ‘actual cash value.’ But a classic car is different in the sense that the value of the car increases (or stays the same) over time, especially when you restore it. The latter is where ‘agreed value’ makes sense.
If something does happen to your classic car, you don’t want the depreciated value from a regular insurance ‘actual cash value’ policy to pay for the damage because there will be a large gap in the payout, and you won’t be able to replace the unique parts to fix it.
The agreed value takes into consideration the rarity of the car and parts, popularity, age, and other features. If something disastrous occurs such as your car being totaled, you will get a paid the amount you agreed on with your agent, with no questions asked.
Specialized collector car insurance companies charge you much less because for one, the cars are usually driven much less which usually means less miles accumulated than ‘regular use cars.’ Also, collector car owners do a much better job maintaining their vehicles than standard cars.
This combined helps this audience of collector car owners have a higher reputation to drive their car in a safer manner with less risks. Insurance companies like lower risk and will usually keep your rates much lower for this.
It is recommended that you shop around and compare quotes from specialized collector car insurance companies to find the best rate.
If something does happen like a cracked windshield or broken headlight to your classic car, you need to replace it with a suitable part that maintains the car’s classic essence. With a specialized policy, you will be able to get the full replacement value of the parts.
If you owned a standard insurance policy, you would be payed the cost of a regular car windshield or headlight which wouldn’t help retain the purity of the classic car.
A standard insurance policy has too many restrictions for your classic car that many people overlook, which could cause the insurance company to deny your claim if the car was damaged. For example, some standard policies won’t let you take your car on vacation or long road trips. Classic car insurance usually gives you the freedom to roam and be fully covered wherever you may be (minor restrictions referenced at the end of this article).
Specialized car insurance policies for classic car even protect you at car shows. With a standard policy, it would not. Having a classic car insurance allows you the freedom and calmness to enjoy your time at the car show without having to worry as much. For example, Heacock insurance has great protection for event and shows.
Classic car insurance companies will most likely charge you the same lower rate for liability coverage even if you own a dozen classic cars. It doesn’t matter the quantity that you own as these insurance companies know that this group is likely to own more than one collector car.
While having specialized car insurance is the way to go, there are some restrictions, limitations, and other points of interest that one should take into account when shopping for classic car insurance. It is best to have the types of questions ready to ask when looking for a quote to find the best policy for your collector car situation.