Comparing classic car insurance
Image: bluemoon197511, 2012
The average classic car stands out from ordinary vehicles that are driven day in and day out. Many of these vehicles are worth tens or even hundreds of thousands of dollars, with plenty of prestigious examples being worth millions. Some classic cars hold sentimental value for their owners, making them practically irreplaceable. Chances are you don't own a million-dollar classic car, but you do want to have it protected under the best insurance policy possible.
As with any ordinary vehicle, anything can happen to a classic car, from a minor fender-bender to a catastrophic accident that leads to a total loss of the vehicle. Just as it is important to have insurance coverage on an ordinary vehicle, it is especially important to have coverage for a classic car, especially if you want to protect your investment. Insurance plans can get pretty expensive, depending on the number of cars insured and the value of the vehicles being insured, so even classic car owners are looking for ways to save on auto insurance.
The best way to save on auto insurance for classic cars is to compare prices from different classic car insurance providers. Thanks to the unique nature of classic car insurance, making direct comparisons between classic car insurance providers can be a bit difficult, but it's not impossible to do. Here are a few ways you can effectively compare classic car insurance companies and get the best rates available:
• Make a list of the classic car insurance providers that are available in your area. Many of these providers serve customers nationwide while others handle regional customers. It is tempting to ensure your classic cars with the same insurance provider that offers coverage for your regular vehicles, but chances are you'll want to stick with companies that specialize solely in providing classic car insurance.
• Determine the value of your classic car. This will definitely have a bearing on how much it will cost to have it insured. Underestimating the value of the vehicle could lead to it being underinsured, causing you to fall short of the vehicle's total value in the event of a claim.
• Do your homework and research the benefits, perks and pitfalls offered by each classic car insurance provider. These companies offer varied types of coverage, as well as different levels of service and rates.
• If possible, use a comparison site to get a rough estimate of the insurance costs. Comparison sites make it easier to compare multiple insurance providers.
Also, keep in mind the terms, Actual Cash Value (ACV), Stated Value and Agreed Value. Most insurance providers, mainly those specializing in ordinary insurance, rely on ACV, which is a depreciated "book" value paid in the event of a claim. Unfortunately, the older the vehicle is, the less book value it has. Most classic car insurers offer "stated value" policies that allow owners to state a value greater than the book value. However, insurers are only required to pay up to that amount. A few classic car insurance companies require owners to negotiate an "agreed value" before the policy is issued. The difference between an agreed value and a stated value is the insurance provider is required to pay the full agreed value in the event of a total loss, as opposed to offering less than the full stated value.
Finding the right classic car insurance provider can be a laborious and complicated experience, but having complete insurance coverage for your classic car makes it worthwhile. Fortunately, ClassicCar.com features a wealth of information on the best classic car insurance companies in the business along with other helpful tips on how to save on auto insurance.