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Low Cost Classic Car Insurance

Low cost classic car insurance is a primary goal of many enthusiasts. With so much money wrapped up in the vehicles themselves, owners often need to find any means necessary to cut costs where they can to help fit these vehicles into their budgets. Classic car insurance is similar to any other policy because it provides the same basic coverage as ordinary auto policies do on any other car. But it is different in one important sense. While most automobiles lose their value over time, the monetary worth of classic cars holds steady or keeps going up over time. Drivers who own these cars have to be motivated to maintain adequate coverage on them because more so than any other vehicle, classic cars are a long term investment. The simple fact that a person might reasonably expect to get his money back or to make a profit on a classic car alone is enough to illustrate how different they are.

Specialized Insurance for Classic Cars

As long as they are well maintained, classic cars will go up in value over time. This means that as an investment, they need to be protected at a different level than most ordinary cars. The average vehicle begins depreciating as you are pulling it off the dealer lot to take it home. As normal cars begin to age, the owner's need to insure them with extensive auto coverage declines. That's because insuring an automobile is basically insuring its monetary value. As that value decreases, so too does the logic behind throwing money at it from an insurance standpoint.

But classic cars are different. As they get older, they become rarer and more collectible. Assuming a classic stays in the same condition and does not become run down or get driven a whole lot of miles, its value will probably go up. As this happens, the owner needs to be certain the car is insured properly. In many cases, that means turning to a specialized insurer.

When a vehicle is totaled, a standard auto insurance comprehensive policy will issue a check to the policy holder for the actual cash value (ACV) of the vehicle, a number which represents the insurance company's closest assessment of its market value had it been sold on the day of the loss claim. This process is fairly standard and straightforward, can be done online, and most insurers and drivers agree or are not all that far apart in their ideas of a car's value in these cases.

Classic Car Agreed Upon Value

However, the question of value is often muddled in the case of classic cars. For one thing, actual cash value of a classic car can mean different things to different people. Normal cars depreciate in a fairly consistent and predictable manner over time. But classic cars are much different in this regard. An insurance adjuster who has never even seen the classic car to see what shape it was in or what kinds of modifications had been made on it would have a tough time legitimately assessing its actual cash or market value.

The best classic car insurance plans are the ones that protect the full value of the cars being insured. Rather than employing a process for determining actual cash value, they instead opt for coverage based on an agreed upon value. Agreed upon value is different from ACV in that instead of relying on some formula or historical depreciation data, it simply uses a figure that the insured auto owner and the insurance company both agree to. The agreed upon value is predetermined right at the outset of coverage and in the event of a total loss, it is the exact amount the claimant is paid.

Determining Classic Car Value

The value of a classic car is not set in stone the way actual cash value of a normally depreciating vehicle might be. However, there are numerous resources available to help determine the value of old cars. Stock cars that have not been modified are much easier to appraise, with numerous print publications in existence which rate their value according to make and model, model year, condition, etc. Modified cars take a little more work. In these cases, the work of an appraiser may be necessary to arrive at an agreed upon value.

With cars that have been significantly modified, owners may have to convince insurers that the modifications made to the vehicle have in fact added to its value. And cars that have been restored are sometimes hard to appraise for insurance purposes as well. Owners sometimes are required to present receipts denoting labor and other expenses incurred in the process of restoration. Finding adequate low cost classic car insurance involves looking for a provider whose methods and appraisal techniques suit the owner's expectations.


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