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Collector Auto Insurance - All You Need to Know

Updated on June 1, 2012

Collector Auto Insurance

A lot of drivers have desired certain car models in their youth but did not have enough cash to buy them at the time. So they end up buying those cars which have already become classic cars when they already have enough funds in their prime years. Finding the most inexpensive classic car insurance is one thing to consider after owning a vintage car. In general, a classic car insurance policy would cost less than the insurance for a modern vehicle. Such is the case because most vintage cars are driven for fewer miles per year, usually garaged and are better cared for.

Yet, there can still be significant differences for premiums. To ensure that you are getting the right price for your classic car insurance policy, the following tips might prove useful:

Vintage Car Insurance
  • When insuring your classic car, an agreed valuation must be taken. Should the car be stolen or written off, the agreed valuation will be the amount that will be paid. Make sure that this is a guaranteed amount. Otherwise, some insurers may refuse to pay out. An independent valuation may be required by some companies and an extra charge may be added.
  • Verify whether the agreed valuation can be increased each year. Most classic cars increase in value every year and replacing it in the following year may cost a lot more. You also have to remember that replacing rare accessories and embellishers can be very costly too.
  • You can also consider having a limited mileage policy for your classic vehicle. Most of the time, the limit is set between 1,500 to 10,000 miles. You can also check if it is possible to adjust the limit upwards if you are close to exceeding the limit while you are still halfway through the period insured.

Both the veterans and first-time buyers may end up confused when insuring their collector and classic cars. Some of the most common questions may be pertaining to claims, costs, coverages, types of vehicles that can be covered and many other considerations.

Of all the classic vehicles running on the road, less than half of them are insured using specialty programs. Most owners are still insuring these classic cars through standard insurance policies despite the fact that specialty programs have been around for about fifty years already. Compared to a specialty program, standard insurance premiums per year can cost up to 500% more. From program to program, there can be varying levels of claims handling, types of coverage, rates and service.

At present, three categories of automobile insurance coverage are offered namely Agreed Value, Stated Value and Actual Cash Value (or ACV). In the event of a total loss, only the insurance policies with Agreed Value offer all your money back as guarantee. Another added advantage for an Agreed Value policy is the fact that you car’s value will not depreciate.

As a bottom line, you will be able to save a sizable amount of money through classic car insurance. And because specialty insurance programs offer better benefits and relatively lower rates, collectors and interested hobbyists can now enjoy driving their classic cars.


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