There are several companies that write special coverage for Classic and Special-Interest Cars. Some write the policies as an accommodation to their current customers, others are specialists who grant coverages that are far superior to the standard insurance polices used for everyday vehicles.
Most of the coverage for classic cars is the same as the coverage regular cars: liability, medical payments, towing and rental car reimbursement coverage. The real difference is in how the physical damage is handled with comprehensive and collision settlement options. The best policies are agreed amount valuation for comprehensive and collision. With these policies if your classic car burns, get’s stolen or totaled in an accident, the insurance company settles the claim at the agreed amount less your deductible. They agree with you in advance as to what is the value of your car. This requires a number of photos and appraisals in advance of binding the insurance.
Attention: Many companies market what is called a stated amount valuation policy for older cars. Beware! This is simply a way to develop additional premium, cap their loss and grant no additional coverage. By stating the amount of value, the premiums are higher than simply rating the car by year, make and model. The policy is still written on an actual cash value basis at the time of loss. No attention will be given to market value. Many clients are disappointed that they pay more premium and get the same-old coverage, limited to the stated amount; it actually caps the insurance company’s risk!
The savvy insurance buyer also needs to be aware of the underwriting limitations. Some company’s give great coverage, but then tell you can only drive the car 2,500 miles a year, and only to car show events or for maintenance. These limitations are not necessary as the very best policies do not require this limitation.
Contact our classic car insurance experts today at 303-755-8600!