A sense of what the world was represented in the formulation of sheetmetal, the movement of majestic mechanics of yesteryear; it is truly an unique experience owning a classic automobile. Whether it is a depression era 1930s Ford decked-out in hot rod trim, 1950s boulevard cruising Cadillac Eldorado or a 1960s high-performance Pontiac GTO muscle car, these vehicles are only a few that capture the emotions of true car enthusiasts in a such a powerful presence only modern exotics can unearth.
Providing a special ownership experience, special considerations for the classic car itself must be observed. Among regular maintenance and care, owners who also have to consider specific auto insurance. Serving your classic vehicle slightly different than the more common forms of auto coverage, special vehicle insurance products provided through several companies can offers peace of mind to enjoy a classic, modified or limited edition vehicle. Most major auto insurance companies provide collector car options but leading companies specializing in collector car insurance is Hagerty, American Collectors Insurance and coverage endorsed by auction house Barrett-Jackson. If you’re a Canadian collector, you can also find affordable auto insurance in Ontario, British Columbia and the prairie provinces in Canada.
What Vehicles Qualify?
The general rule of thumb for declaring a car as a classic used to occur after 25 years of existence. Many collector car insurance plans continue to accept this in their business model but other have been more restrictive on which vehicles they deem classic or collectible. There may also be vehicles within the 25-year cut-off an insurance company would consider adding to collector vehicle policies.
Typical Collector Car Insurance Coverage
One of the biggest difference to collector car insurance policies compared to standard auto insurance plans is the way a protected vehicle is covered in case of damage or loss.
Where standard collision auto insurance often assesses vehicles based on a depreciated value, a collector car or truck’s value accepts the worth at a fixed amount. Called “Agree-Value Coverage”, the collector car value would be adjusted up to counter inflation annually. Other features offered in some collector car insurance policies provides special services such as coverage for the loss or damage of spare parts.
Special Considerations with Collector Car Insurance
When selecting collector car insurance, one major aspect to policies dictate the insured vehicle can not be your daily driver. Of course, by removing an antique or collector vehicle from everyday hazards, the chances for a pricey disaster is naturally reduced. Driving of a classic or collectible car would be largely limited to car shows, parades and for occasional pleasure. Most collector car insurance policies would even specify a vehicle must be kept indoors within a secured storage facility when not in use.
Since the vehicle being covered by collector car insurance plans are assessed for individual value, an owner will require a collector vehicle value to be professionally appraised. It is also important during an insurance term to disclosure any modification being made to a covered car or truck.
Besides the car or truck, the driver is also placed under heightened scrutiny when applying for collector car insurance. Typically, newer drivers are not considered eligible for collector car insurance as most companies prefer to see at least 5 years of licensed driving experience. Insurance companies will usually not turn down coverage based on single accident but most policies require that any possible drivers in the vehicle’s household must not have a serious driving offense.
Collector car insurance policies do differ so it is encouraged that consumers shop around for not only the best rate but the best coverage.
Information source: American Collectors Insurance, Barrett-Jackson Hagerty Insurance Agency
Photo source: Chris Nagy