In order to best protect your investment in a classic car, it is important that you purchase the right insurance for your vehicle. If you’ve already invested in a classic car, you want to ensure all the hard work you put into it is protected from damage. Choose the right insurance coverage for your classic car with these helpful tips.
What to Look for When Shopping for Car Insurance
Shopping for car insurance for a classic car requires special considerations. Since you’ve made the investment in a piece of vehicle history, you need to ensure you purchase the appropriate type of car insurance. Before shopping for classic car insurance, evaluate these three facts about your car.
- Actual Cash Value
With regular car insurance, the actual cash value, which is replacement cost minus depreciation, is what the insurance company believes you should receive in the event of an accident. Choosing to opt for insurance coverage that determines benefits based on actual cash value will result in a loss of your investment.
- Stated Value
Stated value is the maximum amount an insurance company will pay towards a car insurance claim and usually involves the need to pay a deductible. Classic car owners often consider the “stated value” to be below their car’s true worth.
- Agreed Value
By choosing special car collector insurance, you and your insurance company can arrive at an agreed value for your car. If you have a vintage car, it’s likely worth much more than many new cars on the market today. With an agreed value, you help determine your car’s worth and come to an agreement with your insurance company about the amount you will receive in the event of a claim.
Insurance Companies for Car Collectors
You’ve invested time, energy, and money into your classic car and want it well-protected in the event of damage, fire, theft, or an accident. There is a select group of companies preferred by car collectors that offer quality insurance coverage for classic cars, companies which have received rave reviews over the years. Here’s a snapshot of each.
- Chubb Collector Car Insurance
With over 100 years in the insurance industry, Chubb Collector Car Insurance provides classic car owners with an impressive array of options including agreed value-based plans, comprehensive and collision, liability, uninsured motorist coverage, and parts and equipment coverage.
- Grundy Worldwide Insurance
After 60 years working with car collectors, Grundy Worldwide Insurance is known for their expertise in classic cars. Classic car collectors often choose this company because they offer unlimited mileage plans, agreed value coverage, 24-hour claim service, and do not impose a limit on coverage based on a car’s age.
- American Collectors Insurance
Classic car collectors seeking zero deductible plans enjoy working with American Collectors Insurance. In addition to agreed value coverage, this company offers an inflation guard which annually increases the value of your car. If you plan to keep your car in a garage and drive no more than 5,000 miles per year, American Collectors Insurance is a great value.