By Michael Modica
Collector Car Insurance and Classic Car Insurance
If you are fortunate
enough to own a classic car - or any collectible automobile - then you want to
ensure that your luck does not run out because of having inadequate insurance
coverage. Call it covering your butt - or covering your "asset" - but
by all means, call one of the major providers such as American Collectors,
Haggerty, or Parish Heacock insurance companies and let them put you in the
driver's seat in terms of professional protection of your cherished automotive
investment
investment
How to Kick the Tires on Classic Car Insurance
The whole idea of
insurance is that it needs to do what you expect of it in an emergency, when
the rubber really hits the road. And classic car insurance is as different from
conventional auto insurance as, well, a classic car is from your run of the
mill generic vehicle
When you buy a classic
car insurance policy, you are essentially purchasing protection for those times
when - God forbid and knock on wood it doesn't happen - disaster strikes in the
form of a fire, a collision, or an act of theft or vandalism. Just as we now
have modern airbags to save us in the event of a crash, we also have
collector's car insurance, to protect us with adequate moneybags when calamity
throws a wrench in the works
The time you invest in
choosing the right classic car insurance coverage is well worth the value and
peace of mind that a quality collector's insurance policy delivers for owners
of classic motor cars.
The Nuts and Bolts of Classic Car Insurance Coverage
Collector car
insurance is not the same as the insurance you buy for normal coverage of your
daily transportation. Collector car insurance, or classic car insurance, is
made especially for the needs of the car collector. And while ordinary
insurance does offer some protection, no matter what you drive, it can leave
you high and dry in the event of a loss that it not effectively covered by the
terms of the insurance contract
For example, you may
have a garage-kept Cadillac Sedan DeVille with swooping fins your grandparents
bought for $7,000 brand new back in the 1960s. But dealers have offered you
three times that much, and you saw another one sell at an auto show for
$35,000. If you don't have special collector car insurance or classic car
insurance, and the car is totaled, you will be lucky to get $7,000 for it. With
depreciation calculated in, the insurance statisticians may decide that it is
worth only half that much, or less, and you could wind up with two or three
grand in exchange for your dream machine
Stipulations or requirements normally encountered while shopping
for collector car insurance or classic car insurance:
A decent driving record
At least 10 years driving experience
No teen drivers on the policy or drivers with poor driving
records
Secure and out of the weather garage
Proof that you have another car for daily transportation
·
Collector vehicle insurance is sometimes limited by the age of
your car, and if your car is too young it may not qualify for a particular
policy
Limited mileage. You probably don't want to drive your creampuff
car all the time, and your insurance company doesn't want you to either.
Mileage limits have increased recently, though, so if you can live with 250
miles a month you're probably okay
Coverage with collector car insurance or classic
car insurance: Three
(1):
kinds of value are important to understand when buying your policy. Actual
cash value: This is what you usually get with ordinary insurance, and is based
on replacement cost minus depreciation.
(2) Stated value:
The insurance company
pays up to the stated value of the car, but may not guarantee the full stated
value. And deductibles of up to $1,000 usually apply
(3) Agreed value:
In most jurisdictions,
those who provide collector car insurance or classic car insurance are allowed
to insure for a value that you and your insurer agree upon. And for most autos,
there is no deductible. If your $100,000 vintage Rolls get trashed, you get a
check for 100 grand, plain and simple - which is exactly why collectors use
special classic car insurance coverage
Do a periodic review of your coverage limits, because classic car prices are rising. What
you insured your cherry classic for ten years ago may be a fraction of what
it's worth today. And if you are restoring a vehicle, ask your agent to give
you appropriate insurance. There is no need to pay extra based on mileage
statistics, if your car is up on blocks with no engine inside it. And as the
car's value increases thanks to your hard work of restoring it, you should
raise the coverage to keep up with the added value of the restoration
Keep all your receipts and paperwork - for everything from parts and labor to
expenses incurred to take it to a classic car show - so that you can document
the total investment your collector's car represents. And take photos and keep
them updated, for the same reason. And Last But Not Least: Special Savings Opportunities
As long as you meet
the criteria in terms of how you use and take care of the car, you can usually
buy a policy
Traditional insurers
will either refuse coverage, offer only a replacement value based on the nuts
and bolts (minus heavy depreciation) of the car, or will charge you a
prohibitive amount for the premium. But many collectors find that special
collector's coverage saves them money - as much as half - while insuring them
for higher limits, sometime three or four times what a traditional company gave
them
Yes, it's possible to
get collector's insurance coverage for full market value for your car, and save
up to 50 percent off of the premium you'd pay with ordinary insurance. That
makes classic car insurance a must-have for any serious car buff
Below is information
about three of the most reputable and dependable collectors and classic car
insurance companies in the USA (All information listed below subject to change,
please contact the insurance companies listed to be sure.)
Hagerty Insurance P.O. Box 1303 Traverse City, MI 49685-1303
:Qualifications:
Similar to the others listed below, but please contact Haggerty
for details
American Collectors Insurance P.O. Box 8343 Cherry Hill, NJ 08002 Email: info@americancollectors.com Toll Free: (800) 360-2277 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
At least 15 years old
Garage-kept
Driven on a limited, pleasure-only basis (up to 5,000 annual
miles - available in most states)
You may also qualify by:
Having at least 10 years driving experience
Having a good driving record
Having at least one "regular" vehicle for every
licensed driver in the household You may request a policy application either
directly from American Collectors Insurance or through your local insurance
agent (rates are the same either way)
Parish Heacock Classic Car Insurance P.O. Box 24807 Lakeland, FL 33802-4807 Email: info@parishheacock.com Toll free: (800) 678-5173 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information)
·
Each household member of driving age must have at least 10 years
driving experience or be excluded
·
Each household member must have a regular use vehicle less than
15 years old that is insured with liability limits equal to or higher than the
limits being applied for on the collectible vehicle
All licensed members of household and any other drivers of the
vehicle must be listed on the application
Maximum of two accidents or violations in the household, maximum
of one per licensed household member in past 3 years. No major violations
permitted in past 5 years
A Driver Health Questionnaire must be completed for all drivers
over 70 years old
Auto must be stored in a locked permanent garage facility when
not driven
Auto may not be used for commuting to or from work or school,
used for business purposes or as a substitute for another auto.
Autos not covered while on a racetrack or when being used for:
racing, speed, driver's education, or timed events
Must display pride of ownership: well maintained, in restored or
well-preserved condition.
Vehicles under restoration must be stored at residence or a
restoration shop, with a target date for completion. Agreed value coverage is
not available on cars under restoration. Eligibility subject to company review
Replica Vehicles and Pro Street vehicles are subject to company
review
Trucks and Jeeps must be over 25 years old, and not be used for
towing, hauling, off-road or utility use.
Generally do not require appraisals, but may ask for one if
vehicle value is difficult to determine
Michael Modica is an
avid musclecar fan. He is the webmaster of the world's leading Second
Generation Camaro resouce,http://www.nastyz28.com
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