Those who own and drive collector cars have different needs for his or her collector car insurance than they’ve for his or her cars which can be driven every day. A treasured car is by definition “special”, and so it has special considerations to take into consideration as it pertains to insurance.
Your everyday insurance provider that ensures the automobile you drive to work is accustomed to working with claims on modern cars that depreciate in value as they age, and the typical owner doesn’t spot the difference between a $2000 paint job and a $10,000 paint job. A business that specializes in collector auto insurance has several key benefits to supply the collectible car owner.
Benefit # 1: Lower Premiums – A collector car is generally only driven on a limited basis, stored indoors, not driven in bad weather, and generally leads a “babied” life. Most classic car insurance companies will also be somewhat selective in who they’ll insure. Those two factors enable the classic car insurance company to charge much lower premiums than conventional insurance companies because they know that the collector’s car is less probably be in an accident.
Benefit # 2: Agreed Value Coverage – Most classic car insurance companies offer an Agreed Value policy, which means that you arrive at an agreement with the insurance company on which your car or truck may be worth prior to the policy is written. When you yourself have an overall total loss accident or theft, an Agreed Value policy will reimburse the full total amount that was agreed upon once the policy was initiated. Not many conventional insurance companies provide a true “Agreed Value” policy. They provide a “Stated Value” or “Stated Amount” policy includes a clause that enables them to only pay what they “think” the vehicle was worth, and it generates the assumption your collector car is depreciating just like a typical used car!
Benefit # 3: They Understand Your Needs – Specialty collector car insurance companies understand your requirements better when compared to 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 simply how much your collector car methods to you, and they understand the importance of the vehicle being repaired correctly so that it retains its value. When presented with a claim they provide you with much less argument and more leeway to truly get your car repaired the right way the initial time.
Benefit # 4: Repair Shop Of Choice – Many every day insurance companies is only going to pay a collection rate for collision repair at a high-volume body shop that does average-quality work on modern cars. If you take your car or truck to a shop that specializes in restoration work, you might be left footing the bill for the difference in cost. Many antique car insurance companies will allow you to take your car or truck to a niche repair shop, and they’ll pay what it costs to really have the car repaired the right way by a craftsman that is skilled in restoration work.
Benefit # 5: OE Parts – On the same note, many every day insurance companies is only going to pay for less costly aftermarket repair parts. Using non-original parts can reduce the worthiness of one’s vintage car considerably, as they could unfit along with original equipment parts and an all-original car is always worth more. Many specialty insurance providers allow for the bigger 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 for instance 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 in the event that you miss an event as a result of the mechanical breakdown in route there!
Overall, specialty collector car insurance companies have plenty of advantages for the classic car owner. If you own and drive an enthusiast vehicle, you may find that a regular insurance coverage from a regular insurance company is severe with a lack of comparison.