Classic Car Insurance - Why Your "Dream Car" May Be at Risk

You may have finally got your dream car. Maybe it'slower. Most car collectors keep their vehicles in tip top
that muscle car you always wanted back in highshape, and they are only driven a limited amount. This
school, or you got that car back that you had 30means these cars are not as much of a liability to the
years ago. Maybe you've had your classic car forinsurance company. The only stipulations you may run
many years now. In any case, if you are insuring it withinto are limited mileage allowance (usually 5000 miles a
your current daily transportation insurance company,year or around that), a minimum age driver limit of 25
here are some reasons to look into a collector caror 30, and you cannot race the vehicle. Many policies
insurance company.even let you have more than one classic car under
First of all, many standard car insurance companiesthe same policy, for the same price!
may not insure your classic car for what it's trulyIf you have a rare or specially modified car, or have a
worth. Many classic car owners who have their automodel built by a famous builder, your classic car may
covered by their standard insurance company may behave more value than any book or standard insurance
covered under an Actual Cash Value policy. This iscompany will value your vehicle at. Again, because
probably the worst policy you can have, since thiscollector car insurance companies only deal with
coverage entails that you will be paid the actual valuecollector cars, they know what to look for in
the insurance company determines your vehicle has.determining the true value of your collector car. Using a
They may use blue book values if they are listed, orspecialty insurance company is the best way to fully
use a percentage of what you paid for the vehicle. Ifinsure your classic vehicle.
you paid $4,000 for that car ten years ago and now itI'm not going to plug any certain insurance company,
is fully restored, the insurance company may see thebut using a search engine will bring up more than you
$4,000 depreciated over ten years. Vehiclescould ever compare. You only need to compare two
depreciate under the Actual Cash Value policies, evenor three - most collector car insurance quotes will be
classic cars and other collectibles. If you find you aresimilar. You don't usually find big swings in prices like
under this type of policy, read on. You need to look atyou can find in standard daily transportation vehicle
the next two types of policies.quotes. Before calling, make sure you have a general
Stated Value and Agreed Value policies are the bestballpark figure for the value of your car. The insurance
fit for classic cars. They both allow the value of thecompanies may want to see receipts for restoration,
car to be set between the owner and the insuranceparts, and labor which you have used to establish the
company, not just a standard value taken from a datavalue. Any rare options, original parts, etc. may also be
sheet. However, Agreed Value policies are the bestmentioned.
choice. Stated Value policies still allow the vehicle toOnce you have your insurance policy set, you should
depreciate yearly, and there are usually higherperiodically update it. Classic car values over the last
deductibles. Agreed Value policies do not depreciate,ten years or so have been going up quite substantially.
so your classic car is always covered up to the maxRestoration also adds value to a vehicle. Make sure
amount. Plus, many Agreed Value policies do not haveyou are insured for the full value of your vehicle in
deductibles, making it the best choice.case the worst possible scenario happens. It pays in
Now that I have probably scared some classic carmore ways than one to look into a collector car
owners, there's other good news for having your carinsurance company for a quote. Not only may you
insured under a collector car insurance company. Yousave a lot on the premiums, but you may find out your
may save up to 50% off your premiums. Becausecurrent insurance doesn't fully cover your classic
these insurance companies only deal with classic andvehicle up to its' true value. That is one big risk,
other collector cars, they can keep their premiumsespecially if you have a truly valuable classic.