Car Insurance: Classic Car Insurance

Recent stats tell us that more than half of all classic collector cars are insured by your everyday standard insurance company. The insurance companies will tell you that you will get a better deal from them by insuring multiple cars with them, but that just isn't the case.

There are many good classic car insurance agencies out there, but I recommend using Grundy or Haggerty. Grundy is the company that insures my cars.

So why not use my regular insurance company? Well for starters...you are probably paying at least 2x what you would through a collector insurance company. Second and more important, your classic car could be substantially under insured since these insurance companies and their agents are not specifically classic car insurers.

The type of insurance you should be looking for (for) your car...

• The Stated Value insurance lets you state a value to the car, allowing you to go over the depreciated value. The problem with this option is that your car can depreciate, and the fine print will show that you may still not be fully insured for the exact stated amount. So check out the fine print!
• The Agreed Value is what you want! Under these plans, your car is covered 100% up to the agreed upon value of the car, and there are usually no deductibles. Your car does not depreciate which makes this the best choice for insuring your collector car.

Limitations
With the agreed value insurance options, usually some or all of the following items are listed on the policy. Be sure to ask what the mileage restrictions are (mine with Grundy...unlimited) because the average restrictions are about 250 miles a month. With some companies you will have to provide yearly odometer readings.

Other limitations might be you will have to own another car, making it the "daily" driver and not the classic car. A lot of the companies will require a minimum age limit of 25 years old and a clean driving record. Some companies might even require your car to be garaged at your house.

Yet others may not even be allowed to drive your car to the store for groceries. They may only insure you for car shows and cruise events. Maybe just weekend driving? So ask all these questions and make sure you are clear on the rules.

Bottom line...if you have a classic or collector car...find a company that insures these types of cars and avoid your regular insurance company.  In the end...you  will be much happier!

The Value of Your Car:

Classic cars that are still nearly stock with the original parts, are easier to put a value on since there are guides and other book price listings on these. Cars that are restomods or hot rods...becomes a bit more work.

Insurance companies will look at what you have into the car. Keeping detailed lists of work done and all receipts, including labor costs, is very important in determining its worth. You may also want to consider getting a certified appraisal.

Obviously keeping updated photos of your classic car is also a good idea. Another good idea would be to your coverage once in a while and make any necessary adjustments. You want to make sure your coverage is accurate and up to date.