People who own classic or antique cars rarely insure their cars properly when it comes to auto insurance. They don't take advantage of saving money and they also miss out on getting better available coverage. It is quite common and sometimes convenient to simply add your classic car on with your regular auto insurance policy. It sounds good on the surface. You don't have two separate policies. And along with your every day vehicles, a multi-vehicle discount usually applies.......
However, by insuring a classic car on a regular car insurance policy, you're missing out on a lot of good coverages. And as I will soon explain, you're probably spending more money than you need to be as well. So if you have your classic or antique car insured under a regular auto insurance policy, you may want to think twice before renewing the policy this year.
I have compiled a list of the main seven reasons why your classic car should be insured under its own special classic car insurance policy. These seven points will give you a better understanding of how classic auto insurance works as opposed to insuring it under a regular auto insurance policy.
1. Premium on a classic auto insurance policy is usually about the same, if not less then the same classic car being attached to a regular auto insurance policy.
The reason is because of intended use. When you insure any type of vehicle on a regular auto insurance policy, the insurance company will rate you assuming that you use that car as your everyday vehicle. Classic or antique cars on the other hand, are usually only driven once in a while for special occasions (e.g. car shows). Because classic cars aren't used as everyday vehicles the risk of them being an accident is much less as opposed to a car that is being driven virtually every day. That is why the premium comes out less or the same for a special classic auto insurance policy.
2. Agreed value versus Actual Cash Value (ACV) coverage.
On most regular auto insurance policies agreed value coverage is not available on an older vehicle. Therefore, if you would happen to total a classic car, with actual cash value coverage you would only get the fair market value of what the vehicle is worth. This is how many classic car owners get lowballed in the settling for claims that don't cover the full value of the vehicle. With a specialized classic auto policy coverage is insured on an agreed value basis. This means that both the insured and the insurance company both know exactly how much will be paid out in case of a total loss on the vehicle, which amount is stated on the policy.
3. Depreciation factor.
With just about any regular auto insurance policy vehicles depreciate in value over time. And by insuring a classic car on a regular auto insurance policy, you run the risk of being covered for less and less each year that you keep your classic car insured this way. With classic car insurance, there is no depreciation in value over time. In fact many vehicles can appreciate in value, and coverage can be increased as such.
4. Zero deductible coverage offered.
With most classic auto insurance companies, you have the option of selecting a zero deductible for comprehensive and collision coverage. This means that if you were to file a claim for damage to your classic car, with a zero deductible, you have no out-of-pocket expense. Zero deductibles are rarely offered on a regular auto insurance policy. And if they are offered, the premium is usually pretty high.
5. Better claims adjusters.
Regular auto insurance companies hire claims adjusters that deal with mostly regular type of vehicles. When you insure your vehicle with a classic car insurance company, their claims adjusters specialize in classic and antique vehicles. They know a lot more about what it takes to return a classic vehicle back to its original condition. An adjuster who had not had special training on repairing classic cars tend to grossly underestimate the damages, nor they have have a grasp on the special parts that are required.
6. Flexibility of body shops to choose from.
Not only do classic car insurance policies have better claims adjusters, but they also much more likely to work with you as far as choosing the right auto body shop to repair your vehicle. This is very important because somebody shops are better than others as far as specializing in classic and antique vehicles and the parts needed to repair them. If you get into an accident with a classic car, the last thing you want is to be.limited as far as where you can get repairs done.
7. Other optional coverages available.
Each classic car company is different as far as optimal additional coverages. But the main point here is that you will be offered some coverages that would not be available with the regular auto insurance policy. Be sure you take a close look at what is offered and for what price before blowing these extra coverages off. Some of them are very worthwhile to have, and most are very inexpensive as well. These type of coverages include things such as upgraded roadside assistance, coverage on special parts and equipment, special coverage on accessories, etc.
For those who own multiple classic / antique cars, you get a special break with classic car insurance.... A classic car insurance policy only charges you once for liability coverage. A regular auto insurance policy will charge a liability premium for each vehicle.
People who own classic or antique cars tend to treat their vehicles as their baby! They give their classic cars the utmost care. And they usually treat their vehicles with kid gloves. .... But the one glaring exception to where they don't always give the best care for their vehicle is when it comes to auto insurance. To get the best coverage on a classic or antique vehicle, you really need special coverage.
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..