Classic Car Insurance Tips
Posted: Sunday, November 23, 2008
by Timothy Leary
http://www.mycoveredcallwriting.com
Depending on usage, there are several options for classic car insurance. Although getting the right insurance is not complicated, there are some things that are not obvious.
Many owners make the mistake of calling their current insurance agent and just writing another policy. Seems reasonable enough and hassle free, just roll it under your other auto insurance. It is estimated that the majority of vintage classic cars are in fact insured this way. Owners are paying higher premiums and getting less coverage.
The danger is that the policy your agent gave you is probably the same as your current vehicle. Even if your current vehicle is a high dollar car, is it appreciating in value? If you own your current car for 3-4 years and need to collect insurance in a total loss, the payout will be based on the depreciating car value.
On the other hand, if you have a beautiful 1967 GTO staring at you from your driveway, do you think it will be worth more or less three years from now? Hint: probably a lot more!
Do not use a standard insurance plan
Classic car insurance has been available for years. You need to check with your provider, but usually there are some minimal driving restrictions relative to mileage, say less than 5000 miles per year. Many will require that you have a day-to-day car already registered so the classic will not be used for routine transportation.
Know the various policies.
- Stated Value. This type of policy lets you declare the value of the car that is greater than its depreciated book value. This is better than a standard policy, but will only pay up to the stated amount and does not factor in appreciation.
- Actual Cash Value. This is more like a standard policy where the value is determined on some kind of depreciated value. With this policy, the insurance adjuster decides what your car is worth. Hopefully they are having a nice day!
- Agreed Value. This is where you and the insurance company agree on the value of the car. There is no depreciation. In addition, the agreed upon value can be modified during the life of the policy to reflect increases in value. This way, you are 100 percent protected that you will receive the full value for your car.
- Many classic car insurance policies have minimum age restrictions, 25 to sometimes 30 years old. Younger drivers are not permitted.
- Not all classic car agents are created equally. Make sure you check out their customer service and feel confident that they know replacing a windshield on a 1967 GTO will probably be more expensive than your everyday car.
- Make sure your carrier is licensed in your state.
Author Bio
Tim Leary
Serial Car Nut
www.yourdreamcarfinder.com
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