Even though specialty auto insurance companies that only insure collectible cars have been around for over a decade, more than 50% of classic cars are still paying more than they have to buy going with your standard auto insurance company.
The problem with this is that most insurance companies don’t understand the worth of these cars, both in terms of cost and nostalgia. You can end up paying 500% more than you have to for the less coverage.
If you decide to go with an auto insurance company that specializes cars you will find that you will be paying far less. Most auto insurance companies look at cars at the face value. But as you and I know, a ’64 Ford Mustang is worth much more than a few thousand dollars.
Different Kinds of Collector Coverage
The 2 most common types of collector car insurance are: Actual Cash Value, Stated Value, and Agreed Value.
Actual Cash Value (ACV):This is the type of coverage most auto insurance companies will cover you under. This is the blue book value of a car. As a car gets older, the value of it goes down. This is ideal for most cars, but for a collector car you can see where this type of coverage isn’t adequate.
Stated Value: This type of coverage is more ideal for collectible cars, but not neccisarly the best option. This coverage is rather flexible and lets you state the value of your car. As time passes your car will hold the same value.
Agreed Value: Agreed Value coverage is the best option for those looking to insure their collectible. With this type of coverage, the value of your car will always be what other collectors are willing to pay. To get this type of coverage you will probably need a collector car specialist to appraise the value of your car. Agreed value coverage also takes modifcations and restorations performed on your car.
There are some limitations to insuring your collectible. You must be at least 25 years old (30 in some cases) and must have a relatively clean driving record. The high value of these cars makes it harder to insure for less experience drivers.
If you are insuring multiple collectible cars, you can typically get a pretty heafty discount. Every specialty car insurance company varies in rates, coverage types, and restrictions so make sure you ask plenty of questions.
