People who own and drive collector cars have different needs for their collector car insurance than they have for their cars that are driven every day. A collectible car is by definition “special”, and so it has special considerations to take into account when it comes to insurance. Your everyday insurance provider that insures the vehicle you drive to work is accustomed to dealing with claims on modern cars that depreciate in value as they age, and the average owner doesn’t notice the difference between a $2000 paint job and a $10,000 paint job. A company that specializes in collector auto insurance has several key benefits to offer the collectible car owner.
Benefit # 1: Lower Premiums – A collector car is normally only driven on a limited basis, stored indoors, not driven in bad weather, and generally leads a “babied” life. Most classic car insurance companies are also somewhat selective in who they will insure. These two factors allow the classic car insurance company to charge much lower premiums than conventional insurance companies, because they know that the collector’s car is less likely to be in an accident.
Benefit # 2: Agreed Value Coverage – Most classic car insurance companies offer an Agreed Value policy, which means that you come to an agreement with the insurance company on what your vehicle is worth before the policy is written. If you have a total loss accident or theft, an Agreed Value policy will reimburse the total amount that was agreed upon when the policy was initiated. Very few conventional insurance companies offer a true “Agreed Value” policy. They offer a “Stated Value” or “Stated Amount” policy has a clause that allows them to only pay what they “think” the car was worth, and it makes the assumption that your collector car is depreciating like a typical used car!
Benefit # 3: They Understand Your Needs – Specialty collector car insurance companies understand your needs better than a typical insurance provider does because in many cases the insurance agents and possibly even the owners of the company are car enthusiasts or collectors themselves. They realize how much your collector car means to you, and they understand the importance of the car being repaired correctly so that it retains its value. When presented with a claim they will give you much less argument and more leeway to get your car repaired the right way the first time.
Benefit # 4: Repair Shop Of Choice – Many everyday insurance companies will only pay a set rate for collision repair at a high-volume body shop that does average-quality work on modern cars. If you take your car to a shop that specializes in restoration work, you may be left footing the bill for the difference in cost. Many antique car insurance companies will allow you to take your car to a specialty repair shop, and they will pay what it costs to have the car repaired the right way by a craftsman that is skilled in restoration work.
Benefit # 5: OE Parts – On a similar note, many everyday insurance companies will only pay for less expensive aftermarket repair parts. Using non-original parts can reduce the value of your vintage car considerably, as they may not fit as well as original equipment parts and an all-original car is always worth more. Many specialty insurance providers allow for the higher cost of using original equipment parts.
Benefit # 6: Perks and Special Situations – Some collector car insurance companies offer many other types of benefits, such as coverage for spare parts, memorabilia, tools, car trailers, coverage for overseas transport, etc. Some even offer medical coverage for personal injuries that occur at car shows, and “event disruption” insurance that reimburse car show entry fees and non-refundable hotel deposits if you miss an event due to a mechanical breakdown on the way there!
All in all, specialty collector car insurance companies have a lot of advantages for the classic car owner. If you own and drive a collector vehicle, you will find that an everyday insurance policy from an everyday insurance company is severely lacking in comparison.