The Basics of Insuring Your Collector Car

When you begin shopping for collector car insurance, ensure you familiarize yourself with the different coverage types available and the eligibility guidelines. Below is information on the coverage available for your collector car and eligibility guidelines. Ask your insurance professional for details and advice on the best type for you and your car.

Actual cash value: Similar to standard auto insurance, unless you can prove it is an “exception” to depreciation, you’ll receive whatever it would cost to replace the car, less depreciation. If the car is totaled, the most you can hope for is what you paid for it. With actual cash value, you can choose your comprehensive and collision deductibles.

Stated value: The insurer will pay the insurance value you’ve put on it. You’ll need to prove via appraisals that the car is worth your stated amount. This may sound easy and as though it’s the best option, but most insurers won’t agree to full-stated value coverage, and it generally carries a $1,000 deductible.

Agreed value: This is the most common coverage type for collector cars, and refers to values you and your insurer agree upon. There usually isn’t a deductible.

Eligibility: Rating factors used to assess eligibility are those used in standard policies, but some factors are weighted more heavily when applied to antique car insurance. Some policies have monthly mileage limitations, normally about 250 miles. If you drive the vehicle only a couple times a year, or to parades or shows, ask for a lower mileage limit. It may mean a cheaper premium.

For affordable premiums and to maintain eligibility, you need to

• maintain a good driving record
• show a 10-year driving history
• not include on your policy teenage drivers or drivers with poor records
• ensure the vehicle is in a safe place – preferably in a locked area – and parked off-street
• prove another car is used for daily transportation