Rare, customized and high value cars have specialized insurance needs and a cut-rate policy may leave you high and dry. There are quality insurance products available that are designed specifically for classic cars so that when a claim occurs you will be helped by someone with the knowledge and experience necessary for your vehicle. Your classic, collector or antique car could be insured with a standard auto policy but you may be missing important coverage enhancements.
Repair and Replacement Coverage
Under a normal auto insurance policy, the repair or replacement of your car is based on the market value or book value of the car at the time of the accident. If your car’s value is difficult to determine, you can purchase a “stated value” policy. With this type of policy the value of the car is established when the policy is written, and updated as necessary as the market value changes. The purchase of this type of policy can eliminate any disputes regarding the value of your car when a claim occurs. This is especially helpful if your car has many custom parts or upgrades.
The value of your classic, collector or antique car is only part of your insurance decision making process. You must also determine how much liability insurance to purchase. Each state has their own requirements for liability coverage but most will have a minimum limit for bodily injuries per person, a limit per accident (for more than one person) and a limit for property damages caused by an accident. These minimum limits are rarely enough to protect you fully in the event of a claim so it is important to purchase higher liability limits to make sure that you are financially protected. The liability section will pay for any claims you become liable for but it will also pay for legal bills associated with any defense of your claim.
Making decisions about your auto policy can be challenging when you own a classic, collector or antique car so make sure you review your needs with a professional insurance agent with experience in all areas of auto insurance.